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Japan Project
DR. Giuntas BU315 International Marketing Course
May 13, 2014
Larissa Santangelo
I. History of cultural developments and major influences upon the same
There are many lessons learned from the bubble bursting for the Japan economy
back in the mid 1980s to the start of 1990. In the works of Johnston 2009), due to a
surplus of money from major corporate customers, banks at this time gave out loans to
individuals and began a cycle of loans, to rise in paper value of land, to then more loans
due to the rise in land value. The great rise of land prices made national news, increasing
the travel both into and out of Japan. In late 1990, businesses began to go bankrupt, banks
had to merge due to the soaring bad loans, this lead to Japans lost decade. After
trillions of yen put into public work project, the economy was not revived. The bad loans
were not bailed out until about 2001 with taxpayers funds. The Japanese economy has
yet to fully recover. This has a large influence on the Japanese people and must be put
into consideration when marketing the Japanese market place. (Johnston, 2009, FYI,
Lessons From when the bubble burst. Para. 2, 9, 16, 18, 20) (Larissa)
The Japanese economy has still not recovered from the bubble bursting. This has
lead to Japanese people to start moving towards the more frugal lifestyle, the great
service and high end products are not their target products. An Internet survey found
that 37 percent had cut overall spending, while 53 percent declared themselves more
likely to spend time to save money rather than spend money to save time. (Salsberg).
This shows how the consumer are now looking to make their yen go a little further by
eating in, buying in bulk, and shopping in places with less service emphasis. Another

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factor of the more price conscience Japanese consumers are the 61.6% total dependency
ratio in the country (CIA). With the need to feed not only their main family but also those
who are dependent elders has put an added stress on the younger generation. They have
not lived through the good times of Japan; this is what has them tentative to becoming a
large buyer in the economy again.
Tsuruoka (2014) talks of the high quality of Japanese goods as world
famous, with consumers choosing Japanese cars or electronics over cheaper or
locally-made alternatives. This quality stems from the Japanese culture of
monozukuri. Though monozukuri is mainly linked with the manufacturing of a
product, this word also gives meaning to the time and craftsmanship used on the
product striving for perfection regardless of time or cost. This mentality shows
the pride in each piece produced; this system was implemented after the
financial bubble burst. With monozukuri Japan was able to focus on their
strengths, and that is manufacturing. The Walkman is one example of
monozukuri. Desire not to make an increased profit for these goods but to mak e
a product that is better than that in the market currently and something people
would use. When looking at the Japanese market, remember that quality is
ranked higher than affordability. The consumer wants to know there was skill
and time put into the product, not just mass-produced and may fall apart at any
moment. (Tsuruoka, 2014, Why Japans monozukuri continues to thrive, para. 1,
18, 20) (Larissa)
II. Aspects which influence consumer buying habits and tastes
Lock-up hiring and seniority-based promotion are the traditional practices in the

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Japanese workplace. Only recently has pay based off of individual performance been
increasing, not the norm. This has affected buyer mentality in Japan. Those in lower
positions are not going to have expendable income and they would not be seeing it for a
long time. (Wilson, 2003, The Changing Culture of Japanese Business) (Larissa)
Also with the age structure being majority in 25-54 year range, most of the
population would still be working up to seniority status. Without promotions based on
individual performance the urge and ability to buy will be less. When marketing in Japan
there must be a strong campaign in order to have the limited expendable income go to
your company. This could be achieved by increasing value on the product at a discounted
price (Giunta (2014, Week 3, Global Marketing). (Larissa)
Another aspect of consumer buying is the more recent trend of single
workingwomen. This is a new category to look at in the Japanese culture. These women
have disposable income due to their work and no dependable (Kakuchi). With the right
research on what the single women are looking for in the market. Also with this new
group of consumers they are not sure what all they want, bringing new products into
market to target the single working women can be either a great success or a dud.
Companies marketing to this group must use their resources to research this market
before diving in. This will make sure the company succeeds in the ever-changing
Japanese marketplace. (Larissa)
e. You will select and develop one of the two options. (All students on team)
A)

You will research and analyze one major company headquartered in your
country that conducts international/global marketing endeavors
Determine: Toyotas

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Promotion: The company works with many mediums including
social medias, TV campaigns are their most popular way of
communicating. (Schweinsberg, 2013, Toyotas New 2013 Sales
Target for Corolla Rides on New Model , para. 15) To help
promote Toyotas products they group their company with other
large organizations to keep their name in the headlines in a positive
way. Another way that the company can stay ahead of the
competition is to branch out with their line of promotion. As
discussed before the promotion tactic of having train handle straps
link phones to information of a product. This would bring eyes to
the Toyota product and show that the company is evolving with the
times. (Larissa)
i.

Who is one of its major competitors?

Ford Motor Co., General Motors Co, and Honda Motor Co., Ltd.
(Hoovers, 2014, Competition) (Larissa)
ii.

How does the company youre studying respond to its

competition?
The company makes to competition work to their advantage.

When the market is saturated with competition focusing on target

market of 40-60 year olds, Toyota shifts gears and works to win
over the younger buyers. (Schweinsberg, 2013, Toyotas New 2013
Sales Target for Corolla Rides on New Model , para. 17) (Larissa)

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References:
Central Intelligence Agency, Library, The World Facebook, 2014, January 28; East and
Southeast Asia: Japan; 2014; People and Society; Japan; Age Structure, para. 1.
Retrieved March 22, 2014, from Central Intelligence Agency,
https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html
(Larissa)
Central Intelligence Agency, Library, The World Facebook, 2014, January 28; East and
Southeast Asia: Japan; 2014; Economy; Japan; Population below poverty line,
para. 1. Retrieved February 5, 2014, from Central Intelligence
Agency, https://www.cia.gov/library/publications/the-worldfactbook/geos/ja.html (Larissa)
Central Intelligence Agency, Library, The World Factbook, 2014, January 28; East and
Southeast Asia: Japan; 2014; People and Society; Japan; Dependency ratios, para.
1. Retrieved April 20, 2014, from Central Intelligence
Agency, https://www.cia.gov/library/publications/the-worldfactbook/geos/ja.html (Larissa)

Doing Business in Japan: 2013 Country. (2013). Retrieved March 20, 2014 from
http://www.buyusainfo.net/docs/x_6129571.pdf. (Larissa)
Giunta (2014, Adaptations/International Marketing, Week 2), BU 315 01, International
Marketing, Greensburg, PA: Seton Hill University. (Larissa)
Hoovers, Company Profile, Competition, Toyota Motor Corporation, 2014, Competitors,
Hoovers, Retrieved March 24, 2014 from http://www.hoovers.com/company-

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information/cs/competition.Toyota_Motor_Corporation.a12418ae0c087cb3.html
(Larissa)
Johnston, Eric. The Japan Times, News, Reference, FYI, Lessons From when the bubble
burst, 2009, January 06, Retrieved March 23, 2014 from
http://www.japantimes.co.jp/news/2009/01/06/reference/lessons-from-when-thebubble-burst/#.Uy3dDq1dVGR (Larissa)
Kakuchi, Suvendrini. Inter press service. Asia-pacific, development and aid, economy
and trade, gender, headlines, human rights, labour, population, women and
economy, Japan: Womens Increased buying power a boost to economy.
Retrieved May 3, 2014 from http://www.ipsnews.net/2010/06/japanwomenrsquos-increased-buying-power-a-boost-to-economy/ (Larissa)
Keegan, W. J., & Green, M. C. (2013).Global marketing (7th ed.). Boston: Pearson.
(Larissa)
Kerin, R., Hartley, S., & Rudelius, W. (2013). Marketing. (11th ed.). New York:
McGraw-Hill. Retrieved March 21, 2014, p. from
https://www.inkling.com/read/marketing-roger-kerin-11th/chapter2/title (Larissa)
Macro Cycles. The Model. November 4, 2013. Retrieved May 1, 2014 from
http://macro-cycles.com/2013/11/04/the-model/ (Larissa)
Salsberg, Brian. McKinsey and Company. Insights and Publications. The New Japanese
Consumer. Retrieved May 1, 2014 from
http://www.mckinsey.com/insights/consumer_and_retail/the_new_japanese_cons
umer (Larissa)

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Scrolls of the Mongol Invasions of Japan. Introduction. Retrieved April 15, 2014
from http://www.bowdoin.edu/mongol-scrolls/ (Larissa)
SueLin, Caroline. Understanding Consumer Purchase Behavior in the Japanese Personal
Grooming Sector. (2010). Retrieved March 21, 2014 from
http://journal.yasar.edu.tr/wp-content/uploads/2012/08/No17Vol5_8_Tan.pdf
(Larissa)
Tsuruoka, Hiroyuki. JBpress, English, Biz and Tech, 2014, March 11; Why Japans
monozukuri continues to thrive, Why quality of Japanese monozuki is too
high para. 1. Retrieved March 22, 2014, from JBpreass,
http://jbpress.ismedia.jp/articles/-/40127 (Larissa)
Wilson Center, 2003, February 13; Asia Program, Corporate Culture Shock: The
Changing Culture of Japanese Business, para 3. Retrieved March 22, 2014,
from

http://www.wilsoncenter.org/event/corporate-culture-shock-the-changing-

culture-japanese-business (Larissa)