Research on Som-O (Thai Pomelo) Promotion in Japan

Office of Agricultural Affairs Royal Thai Embassy Kotaki Terrace C. 3-13-22, Meguro, Meguro-ku, Tokyo 153-0063 Japan

September 29, 2015

Key Research Net Corporation Riki-Bldg No. 11, 7-5-34, Akasaka, Minato-ku, Tokyo Tel: 03-3585-0236 Fax: 03-3583-5555 URL: http://www.keyresearchnet.com

Contents

Summary ------2

I. Purposes of research ------5

II. Research methods and period ------5 (1) Newspaper advertisement ------5 (2) Questionnaire research to restaurants guests and collection of sales records from restaurants ------8 (3) Interview to restaurants’ guests and managers by interviewers ------14

III. Results of research, evaluation and discussions ------26 (1) Newspaper advertisement ------26 (2) Questionnaire research to restaurants’ guests ------26 (3) Interview to restaurants’ guests by interviewers ------35 (4) Interview to the restaurants’ managers by interviewers ------38 (5) The sales record of restaurants ------39

IV. Market of citrus fruits in Japan ------43 (1) Quantity of citrus fruits produced domestically ------43 (2) Quantity of citrus fruits imported to Japan ------43

V. Potential of Som-O in Japanese market ------46 (1) Quantitative analysis of SWOT ------46 (2) Discussions by SWOT analysis ------49 (3) Approach to image building of Som-O (from Japanese view points) ------52

VI. APPENDIX-1 Som-O dishes/ Satisfaction level ------54

Summary (1) Research Methods Advertisement on newspaper We put advertisement of Som-O promotion on August 1st and 8th, 2015 on Tokyo version of Yomiuri newspaper. Questionnaire research to restaurants guests We conducted the research on Som-O promotion in total 19 restaurants, 17 in Tokyo, 1 in Yokohama and 1 in Narita during one month on August 1st through 31st. During this period, we collected total 335 answers/comments on Questionnaire, including those recorded by interviewers. Interview to guests and managers of restaurants by interviewers We sent interviewers to all restaurants every day at dinner time and conducted interview to guests and managers of restaurants. In the interview, we collected additional free comments or voices from respondents which were not questioned by the Questionnaire. Collecting sales record We collected the daily sales record from restaurants.

(2) Results of Research Advertisement on newspaper There were 3 guests (among 38 guests who knew this promotion) who visited restaurant by reading advertisement of Som-O promotion in the newspaper. Results of Questionnaire research and Interview at restaurants Awareness of Som-O 23 percent of the guests knew Som-O before Some restaurants display Som-O at visiting restaurants. 24 percent of the guests entrance had the prior experience of eating Som-O. Type of Som-O dishes Most ordered Som-O dish were salad, like Tom Yum Som-O, Yum Som-O which comprised 60% of total order, followed by Som-O and Coconut Mix Jelly (17%) and Fresh Som-O (11.9%). Evaluation of Som-O dishes by guests Juicy, Plain taste, Light taste and Easy to eat, Just right sweetness, Just right sourness, were the most heard comments. Guests’ satisfaction level on taste and quality was high as “Very satisfied” and “Satisfied” answers shared 93%. Price evaluation of Som-O dishes On questions about the dish prices, 77.3% of the guests replied either “Inexpensive” or “Adequate”. Those replied “Expensive” was 18.5%. So the prices restaurants set seems to be reasonable.

Purchasing interest of Som-O On the query whether they want to buy Som-O or not, 63% of the guests replied “Yes”. The average price they wanted to buy was 359 yen/fruit though the replies varies from 100 yen to 800 yen/fruit. The most frequently quoted price was, however, 500 yen/fruit which suggests there were potential customers who want to buy Som-O as a premium fruit at higher prices. .

(3) Potential of Som-O in Japanese market Strong Points of Som-O Unique tastiness different from other citrus fruit There are various citrus fruits sold in Japan such as Grapefruit, Orange, Mandarin Orange, Hassaku Orange or Navel Orange. They have their own unique sweetness and sourness but Som-O has its own unique taste which is different from other citrus fruit and preferred by Japanese people. Can be differentiated from other citrus fruit In bringing an entirely new fruit into Japanese market, it will be highly improbable to attract consumers’ interest without having differentiated taste from that of other fruits already available in Japanese market. Som-O has a unique taste different from other citrus fruits distributed in Japan and thus Som-O can be differentiated from those fruits. This is the Strong Point of Som-O. Weak Points of Som-O Low awareness The results of this research revealed the low awareness of Som-O among Japanese consumers. In order to realize the potential of Som-O in Japanese market, it is crucially important to carry out some activities to elevate consumers’ awareness and attract them. Competition with other citrus fruits Som-O will compete with other citrus fruit. From its size and taste, Grapefruit and Orange seems most likely to compete with Som-O. Even though the size of Som-O is bigger than that of Grapefruit or Orange, and they have different characteristics, more detailed competition study on the quality and price is indispensable. Short “Best Season” The variety of Som-O allowed to bring in Japan is grown abundantly in Thailand year round about 80,000ton/year. However, the best season for Som-O, the period it is eaten most deliciously, is short, August through September. In contrast, competing fruit, Grapefruit or Orange, are imported almost year round in good conditions and there is little concern for the stable supply and quality variation by seasons. As we cannot change the best season of Som- O, this time-limitation could be one of the bottle necks in selling Som-O.

Som-O’s marketing position in Japanese market The results of SWOT analysis suggest that Som-O positions in the “S (Strong) x T (Threat)” quadrant in Japanese market and strongly suggest that Som-O should be marketed under “Differentiation Strategy” in Japanese market.

(4) Approach to image building of Som-O (from Japanese view points) Advertising Som-O as a Thai fruit Japan imports many fruits from Thailand like Mango, Durian, Banana, and Mangosteen. Thus Japanese consumers feels high familiarity to Thai fruits through their experience to buy them in their daily life. On the other hand import of fruits from unfamiliar countries are increasing. Japanese consumers tend to be reluctant in buying those imported from unfamiliar countries. From this view points, image building of Som-O could be effectively done by promotions emphasizing Som-O is a popular fruit in Thailand in the various advertising opportunities. Differentiating Som-O advertising it has a unique character which is not found in other citrus fruit Som-O’s strong point is its unique tastiness which is not found in other citrus fruit. So it is important to identify Som-O’s unique selling point to Japanese consumers first, upon thoroughly studying Som-O’s taste, nutritional value, tasty way of eating or cooking. Then, carry out strong advertisements telling that Som- O has a unique taste, differentiating it from other citrus fruits, especially Grapefruit and Orange. As Grapefruit and Orange is less expensive than Tom Yum Som-O Som-O, price competition has to be avoided. Elevating consumers’ awareness It is crucially important to make consumers aware of the differences between Som-O and other citrus fruits by advertisements putting Som-O’s unique selling point forward. Thus activities such as advertisement of Som-O in Thai festivals, promotion at retail stores with sample tasting or promotion using Thai restaurants, something Office of Agricultural Affairs, Royal Thai Embassy has done this year, will be indispensable. More important is, however, to do such promotions continuously every year, not having them as one year events, not only repeating same events but adding novel events/campaigns until you get consumers’ awareness at a certain level. Promotion of Som-O to distributors in Japan It is important to do promotion to the related businesses in Japan who actually handles Som-O. To do such promotions, it would be important that Thai Embassy to play a central role to organize the venue for meetings and discussions by growers or exporters in Thailand and importers, distributors or retailers in Japan, by inviting such parties in Japan to Thailand

I. Purposes of research Japanese government has allowed Thai Som-O importation into Japan since February 2012. However we seldom see Thai Som-O in Japanese market such as retail stores, restaurants etc This research purposes are to find out reasons and causes why Thai Som-O is not popularly consumed in Japan. We will find out it by customers research in Thai restaurants and find out the ways to expand import of Thai Som-O into Japanese market.

II Research methods and period Period: August 1 through 31, 2015 Restaurants researched: Total nineteen (19) restaurants, i.e., seventeen (17) in Tokyo, one (1) in Yokohama and one (1) in Narita (refer Table-2) We have carried out this research by following five (5) methods:- a. Newspaper advertisement b. Questionnaire research to restaurants guests c. Interview to guests at restaurants d. Interview to managers at restaurants e. Collection of the sales record of restaurants The details of the methods are described below.

(1) Newspaper advertisement We have put advertisements of Som-O campaign twice on the Tokyo version of Yomiuri newspaper, one of the leading newspaper in Japan, on August 1st and 8th, 2015 (refer photos). The number of households subscribing Tokyo version is about 920,000 and it covers, all 23 wards (ku) and 6 cities, i.e., Musashino, Mitaka, Chofu, Koganei, Nishi-Tokyo and Komae in Tokyo.

Som-O advertisement in Yomiuri Newspaper dated August 1, 2015

Som-O advertisement in Yomiuri Newspaper dated August 8, 2015

Translation of advertisement

Som-O

Limited Period Sales Campaign

What is Som-O ? 8/1(Sat) to 8/31 (Mon)

Som-O is Thai’ Pomelo and it’s healthy fruits. Size is almost same as Japanese ZABON (Japanese Pomelo) Som-O is citrus fruits having light pink color and light sweetness

High season of Som-O is August through September

Our selected Thai restaurants serve Som-O foods at high season so that guests can enjoy best Som-O.

We recommend for avoiding fatigue Som-O contains dietary fiber, calcium, glucose as well as Vitamin A, B1, B2, C. Som-O is good for recovering tiredness.

During campaign period in Thai restaurants selected by Thai Government serve you Som-O dishes

Please contact: Som-O dishes are served at Office of Agriculture Affairs, Royal following 19 restaurants Thai Embassy http://oaa-tokyo.jp Tel: 03-6661-3844 Office of Commercial Affairs, Royal (Names of restaurants) Thai Embassy http://thaiselect.jp Tel: 03-3221-9482

(2) Questionnaire research to restaurants’ guests and collection of sales records from restaurants This questionnaire research and collection of sales record was carried out by following methods. 1. Getting restaurants’ cooperation for collecting guests’ comments onto Questionnaire made by Thai Embassy The representative of Thai Embassy visited all nineteen restaurants (refer Table-II-1) on August 1st and 2nd and asked managers to distribute the Questionnaire (refer Table-II-2) to guests who ordered dishes with Som-O and collect their comments. In addition, the representative requested to managers to record the number of Som-O dishes sold every day during this campaign handing the record format (refer Table-II-3). The representative also handed to managers the campaign materials such as posters, ad-displays and leaflets of Som-O to be used throughout this promotion. 2. Delivery of fresh Som-O to restaurants Thai Embassy delivered fresh Som-O to all restaurants so that they can start to offer dishes With Som-O on August 1. 3. Newspaper advertisement To announce the campaign of Som-O, advertisement was put on the newspaper, Yomiuri Tokyo version, on August 1 and 8. In this advertisement, details of the campaign, i.e., campaign period, characteristics of Som-O and the name of all 19 restaurants offering Som-O dishes in Tokyo, Yokohama and Narita were announced (refer Photos). 4. Executing Som-O campaign at restaurants and distributing/collecting Questionnaire The campaign materials offered by Thai Embassy, such as fresh Som-O, posters, ad displays and leaflets were placed on tables, entrance of restaurants or other places easy to be recognized so that guests can notice the restaurant offers Som-O dishes (refer Photos). 5. Collecting Questionnaire and sales records Key Research Net had its representatives visit all nineteen restaurants nine times during the promotion period, once in every 3 days, and collected Questionnaire and sales records.

Table-II-1 Restaurant Restaurant Group Address Telephone Biccamera Yurakucho 6F, 1 Coca Restaurant Yurakucho 03-3201-5489 1-11-1 Yurakucho, Chiyoda-ku, Tokyo COCA- Marunouchi Bldg. 35F, 2 Mango Tree Tokyo Restaurant 03-5224-5489 Japan Co., Ltd 2-4-1 Marunouchi, Chiyoda-ku, Tokyo Mango Tree Cafe Lumine Yokohama 6F, 3 045-342-7873 (Lumine Yokohama) 2-16-1 Takashima, Nishi-ku, Yokohama-shi, Kanagawa Takashiyama Time Square 12F, 4 Blue Lotus Shinjuku 03-5361-1851 5-24-2 Sendagaya, Shibuya-ku, Tokyo Kao Tahi, Arai Bldg. B1F, 5 03-3204-5806 Takadanobaba 2-14-16 Takadanobaba, Shinjuku-ku, Tokyo Lucent Akasaka 2F, 2-13-1 Akasaka, 6 Eat Phak Thai, Akasaka 03-5114-5507 Minato-ku, Tokyo Spice Road Co., PEDI Tokyo Shiodome 2F, 7 Silom Soi 9, Shiodome 03-5537-0008 Ltd 1-9-1 Higashi-Shimbashi, Minato-ku, Tokyo Shin Marunouchi Bldg. 6F, 8 The Siam Heritage Marunouchi 03-5224-8050 1-5-1 Marunouchi, Chiyoda-ku, Tokyo Kitamura Bldg. B1F, 9 Tinun, Aoyama 03-5776-5811 5-1-25 Minami-Aoyama, Minato-ku, Tokyo Akasaka Tarui Bldg. 1F,2F, 10 Tinun, Akasaka 03-3586-3258 3-3-6 Akasaka, Minato-ku, Tokyo Sanken Bldg. 2 F, 11 Saamrot, Higashi-Shinjuku 03-3205-0148 SOMOO 1-2-19 Kabukicho, Shinjuku-ku, Tokyo 12 SOMOO, Shin-Okubo 1-11-24 Hyakunincho, Shinjuku-ku, Tokyo 03-3366-8686 13 Keawjai, Kotobashi 2-15-4 Kotobashi, Sumida-ku, Tokyo 03-3226-9991 AEON Mall Narita 1F, 14 Keawjai, Narita P.K.Siam Co., 03-3634-9991 24 Wing-Tsuchiya Narita, Chiba Ltd Toshin Bldg. 2F, 15 Keawjai, Shinjuku 0476-23-8207 3-21-7 Shinjuku, Shinjuku-ku, Tokyo Ginza INZ2 Bldg. B1F, 2-2 Ginza, 16 Chao Thai, Ginza 03-5250-0870 Chuo-ku, Tokyo Chao Thai, Takizawa Bldg. B1F, 17 Chao Thai Ltd 03-3797-7767 Sibuya Higashiguchi 2-22-10 Shibuya, Shibuya-ku, Tokyo K&K Bldg. 2F, 2-9-10 Dogenzaka, 18 Chao Thai, Shibuya Dogenzaka 03-3463-4000 Shibuya-ku, Tokyo Wondertable HUMAX Pavilion 4F, 19 Erawan, Shinjuku 03-3359-3814 Ltd 3-28-10 Shinjuku, Shinjuku-ku, Tokyo 9

Table-II-2 Questionnaire for Som-O

Q1．Did you know Som-O campaign in this restaurant ? A. □ Yes □ No

Q1-a.(to the customer who knew this campaign) A. How did you know Som-O campaign ? □ By Yomiuri Newspaper advertisement □ I heard from Restaurant when I came before. □ By Internet (Restaurant’s home page etc.) □ Others

Q2. Did you know Som-O before you come to this restaurant? A. □ Yes □ No

Q3. Have you ever had Som-O ? A. □ Yes □ No

Q3-a (To the customer who had experience to eat) Where did you eat ? □ in Japan □ in Thailand □ Others country (name of country)

Q4 (To the customers who ate Som-O food in this restaurant) Q4-1 Which Som-O food did you order？ A.

Q4-2 Please give us your comment on Som-O dish that you had Very Very Unsatisfied Unsatisfied Satisfied Satisfied Taste/Quality Volume of Som-O Healthy Innovative Dish Display

Q4-3 Do you think the Som-O dish you ordered is worth its cost ? A. □ Inexpensive □ Adequate □ Expensive

Q5 What citrus fruit do you like most ?

Written by : Gender: □ Male, □ Female Occupation: □ Office worker □ Housewife □ Student □ Part timer □ Others With whom you came to this restaurant? □Family □ Friend(s) □ Lover □ Office colleague(s) □ Others Age: □ 10’s □ 20’s □ 30’s □ 40’s □ 50’s □ elder than 60’s

Restaurant

Table-II-3 Sales Record

Restaurant Name: Branch: Date: 2015/8/

Name of Menu Sales (No. of Dishes)

Example Yum Som-O Total: 12 Dishes Price: 1,090 Yen

1 Price: Yen Total: Dishes

2 Price: Yen Total: Dishes

3 Price: Yen Total: Dishes

4 Price: Yen Total: Dishes

5 Price: Yen Total: Dishes

6 Price: Yen Total: Dishes

7 Price: Yen Total: Dishes

(Campaign at restaurant)

Som-O campaign Poster at Chao Som-O campaign display at Thai, Ginza Tinun, Akasaka

Som-O campaign at Keawjai, Narita Som-O campaign at Keawjai Shinjuku

Som-O dish menu

Som-O menu of Coca Restaurant, Yurakucho

Som-O menu of Keawjai Narita

Som-O menu of SOMOO, Shin-Okubo Som-O menu of Erawan

(3) Interview to restaurants’ guests and managers by interviewers Key Research Net send its interviewers to restaurants every day, except holidays during August 13 through 16, and carried out interview to guests who ordered Som-O dishes. At the same time, interviewers collected answers of Questionnaire, recorded such answers to Questionnaire, and further collected and recorded guests’ impressions or free comments on Som-O which were not specified by Questionnaire (refer Table- II-4).

We started this research by interviewers on August 1st. Before starting, we assumed guests would welcome our interview and it would be easy to get replies or comments. We found out, however, it was not easy task for interviewers as little guests wanted to participate in our interview. This project hit the wall at the onset. We found following reasons why guests were reluctant to reply:- 1) As there was no menu or leaflet placed on table, guests could not get information what kind of Som-O dishes are available at the restaurant, though many of the restaurants placed advertising materials, posters or displays supplied by Thai Embassy, simply on the wall or at the entrance. 2) Waiters or Waitresses were so busy in looking after their guests and they did not take care of Som-O dishes. So, consequently, they could not get orders of Som-O dishes.

To counteract this difficulties, Key Research Net took additional measures as follows:- In order to have guests understand that the restaurant is carrying out Som-O promotion, Key Research Net made display-panels (refer photo below). In this panel, we described “We offer Thai Sweet Tamarind to guests who ordered Som-O dish and answered our Questionnaire”. 14

Then, our interviewers approached to guests and suggested Som-O dishes, showing the panel, Som-O sample and Thai Sweet Tamarind around the time they started to check menu after being seated at the table. This approach was found to be effective and we became to receive orders for Som-O dishes and collect increasing numbers of comments on Questionnaire. In addition, the interviewers carried out interview to restaurant managers and collected their impressions on the sales trends of Som-O dishes or guests responses or their thoughts if they wanted to add Som-O dishes in their regular menu after this promotion (refer Table-II-5).

Photo above: One of our interviewers with display panel, Som-O and Thai Sweet Tamarind who approached guests and recommended Som-O dishes. Photo below: Display panel to promote Som-O dishes to guests

Get dried fruits by ordering Som-O dishes If you order Som-O dish and answer to questionnaire, we give you Sweet Tamarind

Table-II-4 Interview with restaurant guests

1. Compared to other citrus fruits what is your comment on Som-O ?

2. Do you want to buy Som-O if it is sold in retail store ?

3 . (Showing Som-O to customers) How much yen you can pay for one fruit. of Som-O ?

4. Others

Interviewer

Table-II-5 Interview with restaurant manager

Q1. Please tell us customers’ reaction, comment on Som-O dish.

Q2. Please tell us which Som-O most dish is sold well

Q3. Do you want to sell Som-O dishes after campaign period ? (The reasons of Yes, No.)

Q4. Others

Date: August 2015

Interviewer

Table-II-6 Som-O dish served by restaurant

Restaurant Restaurant Group Dish name Yen/dish No.

Yum Som-O 980 1 Coca Restaurant Yurakucho Fresh Som-O 750 COCA- Som Tum with Som-O 2 Mango Tree, Tokyo Restaurant 2,400 Co., Ltd. and summer fruits Som Tum with Som-O 3 Mango Tree Cafe, Yokohama 980 and summer fruits

4 Blue Lotus, Shinjuku Tom Yum Som-O * 980

5 Kao Thai, Takadanobaba Tom Yum Som-O * 980

6 Eat Phak Tay, Akasaka Tom Yum Som-O * 800 Spice Road 7 Silom Soi 9, Shiodome Tom Yum Som-O * 800 Co., Ltd. 8 The Siam Heritage, Marunouchi Tom Yum Som-O * 1,200

9 Tinun, Aoyama Tom Yum Som-O * 800

10 Tinun, Akasaka Tom Yum Som-O * 800

* These are salad dishes. Although they bear the same dish name, prices vary because of the differences

by restaurants, such as location, quality of the restaurant, recipe of the dish, etc.

Yum Som-O 980

Crispy Spicy Fish Salad 1,600 with Som-O 11 Saamrot, Higashi-Shinjuku Fresh Som-O Spring Roll 780

Fresh Som-O 600 SOMOO Yum Som-O 980

Crispy Spicy Fish Salad 1,600 with Som-O 12 SOMOO, Shin-Okubo Fresh Som-O Spring Roll 780

Fresh Som-O 1,000

13 Keawjai,Kotobashi Phla Som-O 1,200

Yum Som-O 950

14 Keawjai, Narita Kaeng Khua Som-O 1,050 P.K.Siam Co., Ltd. Fresh Som-O 750 Yum Som-O 950

15 Keawjai, Shinjuku Kaeng Khua Som-O 1,050

Fresh Som-O 750

16 Chao Thai, Ginza Som-O and Coconut Mix Jelly 430 Chao Thai 17 Chao Thai, Sibuya Higashiguchi Som-O and Coconut Mix Jelly 430 Ltd. 18 Chao Thai, Shibuya Dogenzaka Som-O and Coconut Mix Jelly 430

Fruits Salad with Fried 880 Wonder Shirasu 19 Erawan, Shinjuku Table Ltd. Som-O with Dried Shrimp 680 Salad

Som-O dishes /Restaurant group COCA Restaurant Japan COCA Restaurant, Yurakucho

Yum Som-O 980Yen Fresh Som-O 750Yen

Som-O dishes /Restaurant group Spice Road Eat Phak Tay Silom Soi 9

Tom Yum Som-O 800Yen Tom Yum Som-O 800Yen

Som-O dishes /Restaurant group SOMOO SOMOO, Shin-Okubo

Crispy Spicy Fish Salad Yum Som-O 980Yen

with Som-O 1,600Yen

Fresh Som-O Spring Roll 780Yen

Som-O dishes /Restaurant group P.K. Siam Keawjai, Narita

Kaeng Khua Som-O Yum Som-O 950Yen

1,050Yen

Fresh Som-O 750Yen

Som-O dishes /Restaurant group Chao Thai Chao Thai, Ginza

Som-O and Coconut Mix Jelly 430Yen

Som-O dishes /Restaurant group Wonder Table Erawan, Shinjuku

Fruits Salad with Fried Shirasu Som-O with Dried Shrimp Salad 880Yen 680Yen

III Results of research, evaluation and discussions (1) Newspaper advertisement We put advertisement of the Som-O promotion on Tokyo version of Yomiuri newspaper on August 1st and 8th.

(2) Questionnaire research to restaurants’ guests 1) Number of Questionnaires collected Table-III-1 presents the number of Questionnaires collected from guests shown by restaurant group. Before launching this research, we assumed we would be able to collect at least 3 Questionnaires per restaurant a day. The actual number of Questionnaires we collected was 335, while we expected total around 1,800 (3 Questionnaires X 19 restaurants X 31 days). Among 19 restaurants, Erawan was the best in the number of collected answers (50), followed by The Siam Heritage (33), Chao Thai (Shibuya, Dogenzaka), and SOMOO. As restaurant group, Spice Road group was best collecting 88 answers. 2) The reasons why there were differences in the number of collections The biggest reason of the differences in the number of Questionnaires collected was whether or not the restaurant placed menu of Som-O dishes on table. If there were no menu for Som- O dishes, guests could not recognize that the restaurant offered Som-O dishes, and, therefore, they did not order Som-O dish nor answered to Questionnaire. One more reason for such difference was the passion to sell Som-O dishes which varied by restaurants. Especially, the passions of restaurant managers resulted in the clear differences in the number of collected Questionnaires. Passionate managers instructed waitresses and waiters to get orders for Som- O dishes, while those without such passions never instructed them and got less orders for Som-O dishes and, consequently, less Questionnaires.

Table-III-1 Questionnaire Collection list

Restaurant Collected by Collected by (1)+(2) Restaurant Restaurant Group restaurant(1) interviewer(2) Group total No. total Coca Restaurant 1 19 8 27 Yurakucho COCA-Restaurant 2 Mango Tree Tokyo 5 0 5 46 Japan Co., Ltd Mango Tree Cafe, 3 9 5 14 Yokohama

4 Blue Lotus Shinjuku 2 4 6 Kao Thai, 5 7 1 8 Takadanobaba

6 Eat Phak Tay, Akasaka 9 4 13

7 Silom Soi 9, Shiodome Spice Road Co., Ltd 7 5 12 88

The Siam Heritage 8 29 4 33 Marunouchi

9 Tinun, Aoyama 8 2 10

10 Tinun, Akasaka 2 4 6

Saamrot, Higashi- 11 2 5 7 Shinjuku SOMOO 36 12 SOMOO, Shin-Okubo 22 7 29

13 Keawjai,Kotobashi 6 7 13

14 Keawjai, Narita P.K.Siam Co., Ltd 16 5 25 58

15 Keawjai, Shinjuku 16 4 20

16 Chao Thai, Ginza 15 2 17 Chao Thai, Sibuya 17 8 0 8 Higashiguchi Chao Thai Ltd 57 Chao Thai, Shibuya 18 28 3 32 Dogenzaka 19 Erawan, Shinjuku Wondertable Ltd 48 2 50 50

Total 257 72 335 335

3) Discussions on results of Questionnaire a) Recognition of the promotion As shown in the table below, the restaurant guests who knew Som-O promotion was only 11.3%, around one among ten guests. Further, guests who became to know about this promotion by Yomiuri newspaper was only three (3) among 38 guests who answered that they knew about this promotion. Thus the advertisement by newspaper was deemed to be less effective. To get better results, we would like to suggest following measures as alternatives:- Flyers (Ad inserts) in newspaper Advertisement through social media such as Line or Twitter Blogs by famous chef or food blogger

Did you know Som-O campaign in this restaurant ? (Single Answer, hereinafter “S.A.”) No. of Answer ％ Total 335 100.0 1 Yes 38 11.3

2 No 297 88.7

(to the customer who knew this campaign) How did you get to know this campaign? No. of Answer ％ Total 38 100.0 1 By Yomiuri Newspaper advertisement 3 7.9 2 I heard from Restaurant when I came before 13 34.2

3 By Internet (Restaurant’s home page etc.) 9 23.7

Others (Heard from friend who visited

4 restaurants before, Seeing poster at the 12 31.6

entrance )

5 N.A. 1 2.6

b) Recognition of Som-O The number of guests who knew the fruit of Som-O was 77 (23%) among 335 guests as shown in the table below. The number of guests who had experience to eat Som-O was 80 (23.9%) among 335 guests. Thailand was the most answered venue where guests experienced Som- O.

Did you know Som-O before you come to this restaurant? (S.A.)

No. of Answer ％ Total 335 100.0 1 Yes 77 23.0

2 No 258 77.0

Have you ever had Som-O ? No. of Answer ％ Total 335 100.0 1 Yes 80 23.9 2 No 254 75.8 3 N.A. 1 0.3

(To the customer who had experience to eat) Where Did you eat ? (S.A.)

No. of Answer ％

Total 80 100.0

1 Japan 25 31.3 2 Thailand 43 53.8 3 Other country 10 12.5 4 N.A. 2 2.5

c) Som-O dishes ordered The most ordered menu was salad dish such as Tom Yum Som-O, Yum Som-O or Som-O salad. This was thought to be the best seller because salad menus were offered by all restaurant group except Chao Thai group at affordable prices.

Which Som-O food did you order？(S.A.)

No. of Answer ％ Total 335 100.0 1 Tom Yum Som-O, Yum Som-O, Som-O salad 201 60.0

2 Fresh Som-O 40 11.9

3 Fresh Som-O Spring Roll 16 4.8

4 Crispy Spicy Fish Salad with Som-O * 0 0.0

5 Kaeng Khua Som-O 21 6.3

6 Som-O and Coconut Mix Jelly 57 17.0

* The reason why “Crispy Spicy Fish Salad with Som-O” is “0.0%”: The dish name, “Crispy Spicy Fish Salad with Som-O” was not mentioned in the Questionnaire written by restaurants guests, while there were actual sales records of this dish in the restaurants. d) Evaluation of Som-O by guests The guests’ satisfactory level on the Taste and Quality of Som-O dishes seems to be high because 93% of guests replied as “Very satisfied” or “Satisfied”. The overall satisfaction was considered to be high as answers replying “Very satisfied” and “Satisfied” were around 90% to all other questions on various elements of Som-O, such as quantity of Som-O, Healthiness, Innovativeness and Display. Note: Please refer APPENDIX-1 for Satisfaction level by restaurants and Satisfaction level by dishes.

Please give us your comment on Som-O dish that you had (Taste, Quality) (S.A.) No. of Answer ％ Total 335 100.0 1 Very unsatisfied 6 1.8 2 Unsatisfied 13 3.9 3 Satisfied 188 56.1 4 Very satisfied 124 37.0 5 N.A. 4 1.2

Please give us your comment on Som-O dish that you had (Volume of Som-O) (S.A.) No. of answer ％ Total 335 100.0 1 Very unsatisfied 8 2.4 2 Unsatisfied 32 9.6 3 Satisfied 175 52.2 4 Very satisfied 116 34.6 5 N.A. 4 1.2

Please give us your comment on Som-O dish that you had (healthiness) (S.A.) No. of answer ％ Total 335 100.0 1 Very unsatisfied 6 1.8 2 Unsatisfied 14 4.2 3 Satisfied 204 60.9 4 Very satisfied 101 30.1 5 N.A. 10 3.0

Please give us your comment on Som-O dish that you had (Innovativeness) (S.A.) No. of answer ％ Total 335 100.0 1 Very unsatisfied 8 2.4 2 Unsatisfied 25 7.5 3 Satisfied 170 50.7 4 Very satisfied 126 37.6 5 N.A. 6 1.8

Please give us your comment on Som-O dish that you had (Dish display) (S.A.) No. of answer ％ Total 335 100.0 1 Very unsatisfied 8 2.4 2 Unsatisfied 31 9.3 3 Satisfied 185 55.2 4 Very satisfied 105 31.3 5 N.A. 6 1.8

e) Cost evaluation of Som-O dishes The table below summarizes guests’ evaluation of the cost of Som-O dishes. Answers judged the cost as “Inexpensive” and “Adequate” tabulated by restaurant (F1) were in total 77.3%, while those judged as “Expensive” were in total 18.5%. Thus the cost setting of Som-O dishes were considered to be good and reasonable, in general. There were two exceptional restaurants, i.e., “Keawjai, Kotobashi” where 46.2% of guests judged the cost as expensive and “Coca Restaurant, Yurakucho” where 40.7% judged as expensive.

Q4_3 Do you think the Som-O dish you ordered is worth its cost ?（S.A.）

Inexpensive

Expensive

Adequate

N.A.

No. (%) (%) (%) (%)

Total 335 5.4 71.9 18.5 4.2 Coca Restaurant, Yurakucho 27 0 51.9 40.7 7.4 Mango Tree, Tokyo 5 0 100 0 0 Mango Tree Cafe, Yokohama 14 7.1 64.3 21.4 7.1 Blue Lotus, Shinjuku 6 0 83.3 16.7 0 Kao Thai, Takadanobaba 8 0 87.5 0 12.5 Eat Phak Tay, Akasaka 13 15.4 61.5 15.4 7.7 Silom Soi 9, Shiodome 12 0 50 50 0 The Siam Heritage, Marunouchi 33 9.1 78.8 9.1 3 Tinun, Aoyama 10 10 50 30 10 F 6 0 100 0 0 1 Tinun, Akasaka Saamrot, Higashi-Shinjuku 7 0 71.4 28.6 0 SOMOO, Shin-Okubo 29 3.4 89.7 3.4 3.4 Keawjai,Kotobashi 13 0 53.8 46.2 0 Keawjai, Narita 25 4 72 24 0 Keawjai, Shinjuku 20 10 65 25 0 Chao Thai, Ginza 17 5.9 64.7 5.9 23.5 Chao Thai, Sibuya Higashiguchi 8 0 87.5 12.5 0 Chao Thai, Shibuya Dogenzaka 32 6.3 59.4 34.4 0 Erawan, Shinjuku 50 8 88 0 4 Tom Yum Som-O 201 6 74.6 15.4 4 Q Fresh Som-O 40 5 52.5 37.5 5 4 Fresh Som-O Spring Roll 16 0 81.3 18.8 0 _ Crispy Spicy Fish Salad with Som-O 0 0 0 0 0 1 Kaeng Khua Som-O 21 4.8 95.2 0 0 Som-O and Coconut Mix Jelly 57 5.3 64.9 22.8 7

f) Citrus Fruits favored by guests The table below is the list of favored citrus fruit by restaurants guests and their numbers. Those who liked Grapefruit were most abundant, 73 people (26.3%) followed by Mandarin, 68 people (24.5%) and Orange, 25 people (9.0%). There were 8 guests (2.9%) who liked Som- O. Citrus Fruits Favored by Guests of Restaurants Surveyed No. Name No. ％ 1 Grapefruit 73 26.3 2 Mandarin 68 24.5 3 Orange 25 9.0 4 Lemon 18 6.5 5 Dekopon orange 13 4.7 6 Hassaku orange 12 4.3 7 Lime 10 3.6 8 Som-O 8 2.9 9 Navel orange 5 1.8 10 Ponkan orange 5 1.8 11 Iyokan orange 4 1.4 12 Kabosu 4 1.4 13 Others 33 11.9 Total 278 100.0 g) Profile of guests who replied to Questionnaire

Gender (S.A.) No. of answer ％ Total 335 100.0 1 Male 118 35.2 2 Female 213 63.6 3 N.A. 4 1.2

Occupation (S.A.) No. of answer ％ Total 335 100.0 1 Office worker 219 65.4 2 Housewife 27 8.1 3 Student 20 6.0 4 Part-timer 14 4.2 5 Others 26 7.8 6 N.A. 29 8.7

With whom did you come to this restaurant (S.A.) No. of answer ％ Total 335 100.0 1 Family 59 17.6 2 Friend 133 39.7 3 Office colleague 53 15.8 4 Lover 15 4.5 5 Others 21 6.3 6 N.A. 54 16.1

Age (S.A.) No. of answer ％ Total 335 100.0 1 10s' 2 0.6 2 20s' 65 19.4 3 30s' 102 30.4 4 40s' 85 25.4 5 50s' 52 15.5 6 Elder than 60s' 15 4.5 7 N.A. 14 4.2

(3) Interview to restaurants’ guests by interviewers

Q1. What is your impression on the taste of Som-O compared with other citrus fruit? Positive comments Comments # Fresh, Juicy, Refreshing 18 Very tasty, Tasty 13 Clear taste, Light taste, Easy to eat 12 Just right sweetness 6 Just right sourness 6 Crispy texture 5 Nice to eat fresh 3

Negative comments Comments # Too less sour 10 Too faint flavor, too less impact in taste 9 Too dry and less juicy 8 Similar to other citrus fruit (Grapefruit, Hassaku-orange, Chinese citron) 7 Som-O does not fit to the cuisine, Could not feel Som-O taste as 5 background taste is too strong

Summary of comments on Q1 In our free-answer style interview, we collected comments on Som-O from 72 guests, who ordered Som-O dishes at restaurants surveyed. There were 63 positive comments. The most abundant comment was “Fresh, Juicy or Refreshing” (18 comments), followed by “Very tasty or Tasty” (13) and “Clear taste, Light taste or Easy to eat” (12). There were 39 negative comments. The most abundant comment was “Too less sour” (10 comments), followed by “Too faint flavor, too less impact in taste” (9) and “Too dry and less juicy” (8).

Q2. Do you want to buy Som-O, if available at retail shop? Want to buy 46 Don’t want to buy 27

To those who replied “Want to buy” Q2-1 What element of Som-O do you like most? Comments # Fresh and refreshing taste with just right sweetness 11 Big in size and looks filling 7 Not too sour 6 Good crispy texture 4 Juicy 3 Easy to eat due to clear and plain taste 3

To those who replied “Don’t want to buy” Q2-2 What element of Som-O do you feel not attractive？ Comments # There are many other citrus fruit available sufficiently at cheaper prices 9 There is little impact in taste/characteristics in Som-O and it’s taste is not 5 the one I want to buy I do not know the fruit itself nor how I can enjoy it 4 It is too big to eat 3 It is dry and not juicy 2 Looks hard to peel the skin 2

Summary of comments on Q2 We got 46 positive replies (63%) who wanted to buy Som-O, and 27 negative replies (37%) who did not want to buy Som-O at retailers, if available. The most abundant reason among positive replies was “Fresh and refreshing taste with just right sweetness” (11 comments) followed by “Big in size and looks filling” (7) and “Not too sour” (6). The most abundant reasons among negative replies was “There are many other citrus fruit available sufficiently at cheaper prices” (9 comments) followed by “There is little impact in taste/characteristics in Som-O and it’s taste is not the one I want to buy” (5) and “I do not know the fruit itself nor how I can enjoy it” (4).

Q3. At what price a fruit do you want to buy Som-O (showing fresh Som-O fruit)? Price （Yen/fruit） # 100 9 200 11 300 14 400 8 500 19 700 3 800 2 Average: JP Yen 359/fruit

Summary of answer on Q3 The average price at which guests wanted to buy Som-O was 359 yen/fruit. The most abundantly quoted price was, however, 500 yen/fruit which suggests there were potential customers who want to buy Som-O as a premium fruit at higher prices.

Q4. Others Positive comments Comments # I want to have Som-O as a fresh fruit, dessert or drink 6 It was tasty and fit to the cuisine 2

Neutral comments suggesting to buy if certain conditions are met Comments # I might buy it, if there are TV program or advertisement of Som-O 5 introduced by celebrities I might buy it, if it contains healthy nutrients such as Calcium, Iron or 3 something good for beauty I might buy it, if it is sold at high-end supermarket wrapped with quality 2 package

Negative comments Comments # Cannot feel Som-O taste due to strong background taste of the dish 5 I do not know what is Som-O nor how I can cook it or eat it 5 Looks hard to peel as it has thick skin, It’s bothering to part it to small size 4 portions I would buy other major citrus fruit 2

Summary of comments on Q4 As a free comments on the Q4, we collected 8 positive answers explaining why they want to buy Som-O, 10 neutral comments suggesting they may buy it, if certain conditions are met, and 16 negative comments explaining why they do not want to buy. It would be worthy to point out following findings:- - There are many guests who wanted to eat Som-O as fresh fruit because they could not really appreciate Som-O taste in dishes which have strong and spicy taste. - There were many guests who pointed out the “lack of information and knowledge of Som- O”, which could be a reason why then could not be positive in buying Som-O.

(4) Interview to restaurants’ managers by interviewers

Q1. On guests’ response, comments or evaluation on Som-O dishes Positive comments Comments # As Som-O is a citrus fruit, Japanese tends to prefer eating it as a fresh 5 fruit, dessert or salad. Could please guests from Thailand or others who became to know Som- 4 O during their trip to Thailand. Negative comments Comments # Som-O is little known by Japanese and so we got little orders and 11 questions. As the impact of the taste of Som-O is not strong, we needed to devise a 2 way to attract guests’ interest, like setting a conspicuous display, to get repeat orders.

Q2. What dish was well sold among Som-O items? Well sold dishes # Tom Yum Som-O 4 Fresh 3 Dessert (Jelly) 3 Fresh Som-O Spring Roll 1 Kaeng Khua Som-O 1

Other comments # We have little orders (around one to three dishes a day) 8

Q3. After finishing this one month campaign, do you want to have regular item using Som-O in your menu? Why do you think so?

Want to have regular item Reasons # Want to have fresh fruit, dessert or beverage using Som-O, as our regular 6 item, if stably available year round with a reasonable cost. Want to have dessert menu as a limited version of the best season 3

Don’t want to have regular menu Reasons # There is little order. The sales record does not justify to make it a regular 2 menu. Som-O is available only in a certain period. So it is difficult to make a 2 regular menu. We have so many items already in our existing menu, and we may not be 2 able to afford promotion for little known item like Som-O. It is time consuming to peel Som-O using knife as it has thick skin, and 2 difficult to handle at restaurant.

Others Comments # I may use it, if there are effective displays or catch-copies with strong 5 impact available. I may use it in a seasonal menu in August and September if available at a 4 reasonable cost. I cannot judge whether I can use it or not, as the price and other supply 4 conditions are unknown.

(5) Sales record of restaurants Table-III-2 presents the number of Som-O dishes sold during this promotion, shown by restaurants and by dishes. Mango Tree Café, Yokohama, did not keep the sales record even though it has sold Som-O dishes. Although sales records were available for other restaurants, it would be better to take these numbers only to grasp the sales trends, as it is hard to believe restaurant people were diligent enough to count number of dishes and keep such records very accurately and precisely in their busy daily work.

Table-III-2 Sale of Som-O dish

Resta Yen/ No. of urant Restaurant Group Dish name dish plate No. Yum Som-O 980 27 1 Coca Restaurant Yurakucho COCA- Fresh Som-O 750 61 Restaura Som Tam with Som-O 2 Mango Tree, Tokyo nt 2,400 15 Japan and summer fruits Co., Ltd. Som Tam with Som-O No 3 Mango Tree Cafe, Yokohama 980 and summer fruits record

4 Blue Lotus, Shinjuku Tom Yum Som-O 980 33

5 Kao Thai, Takadanobaba Tom Yum Som-O 980 16

6 Eat Phak Tay, Akasaka Tom Yum Som-O 800 19

7 Silom Soi 9, Shiodome Spice Tom Yum Som-O 800 8 Road Co., Ltd. 8 The Siam Heritage, Marunouchi Tom Yum Som-O 1,200 56

9 Tinun, Aoyama Tom Yum Som-O 800 56

10 Tinun, Akasaka Tom Yum Som-O 800 24

Yum Som-O 980 13

Crispy Spicy Fish Salad 1,600 4 with Som-O 11 Saamrot, Higashi-Shinjuku Fresh Som-O 780 7 Spring Roll

Fresh Som-O 600 7 SOMOO - Yum Som-O 980 95

Crispy Spicy Fish Salad 1,600 7 with Som-O 12 SOMOO, Shin-Okubo Fresh Som-O 780 99 Spring Roll

Fresh Som-O 1,000 58

13 Keawjai, Kotobashi Phla Som-O 1,200 5

Yum Som-O 950 17

Kaeng Khua 14 Keawjai, Narita 1,050 31 Som-O

P.K. Fresh Som-O 750 22 Siam Co., Ltd. Yum Som-O 950 16

Kaeng Khua 15 Keawjai, Shinjuku 1,050 1 Som-O

Fresh Som-O 750 1

Som-O and Coconut Mix 16 Chao Thai, Ginza 430 30 Jelly Chao Som-O and Coconut Mix 17 Chao Thai, Sibuya Higashiguchi Thai 430 6 Jelly Ltd. Som-O and Coconut Mix 18 Chao Thai, Shibuya Dogenzaka 430 28 Jelly Fruits Salad with Fried 880 43 Wonder Shirasu 19 Erawan, Shinjuku Table Som-O with Dried Shrimp Ltd. 680 55 Salad

Total 860

Table III-3 Sales trends of Som-O dishes Ordered Sold Data Source Guests' Questionnaire Restaurants' Sales Record

No. of No. of dishes # Dish name ％ % answers sold

Tom Yum Som-O, Yum Som- 1 201 60.0 498 57.9 O, Som-O salad, etc.

2 Fresh Som-O 40 11.9 149 17.3

3 Fresh Som-O Spring Roll 16 4.8 106 12.3

Crispy Spicy Fish Salad with 4 0 0.0 11 1.3 Som-O

5 Kaeng Khua Som-O 21 6.3 32 3.7

6 Som-O and Coconut Mix Jelly 57 17.0 64 7.4

Total 335 100.0 860 100.0

Table III-3 compares the number of Som-O dishes ordered/sold which were collected during this promotion study from Questionnaires to guests and from the restaurants’ sales record. The trend of the best ordered/sold items in both data were identical, i.e., salad dishes like “Tom-Yam Som-O” were the best which shared around 60% of total orders and sales. Although there were small differences in other items, overall sales trend showed high similarity.

IV. Market of citrus fruits in Japan (1) Quantity of citrus fruits produced domestically The quantity of citrus fruits produced in Japan is shown in the table below. （Quantity：ton） Variety 2011 2012 2013 2014 Satsuma mandarin 828,600 757,300 804,400 782,000 Chinese citron 31,724 32,265 N.A. N.A. Hassaku orange 28,970 27,957 N.A. N.A. Grapefruit 1.5 2.5 N.A. N.A. Lemon 5,383 7,293 N.A. N.A. Others 218,236.5 214,943.5 N.A. N.A. Total 1,112,915 1,039,761 - - (Source: Combined from Agriculture Statistics, Ministry of Agriculture, Forestry and Fisheries) The total quantity of citrus fruits produced domestically is around 1 – 1.1 million tons per annum. “Satsuma mandarin orange” is the biggest item and shares more than 70% of the domestic production. “Grapefruit”, one of the item considered to compete with Som-O, is not produced in the significant quantity. Another plausibly competing item, “Hassaku orange” is produced around 28 thousand tons per annum and its production quantity seems stable.

(2) Quantity of citrus fruits imported to Japan The quantity of citrus fruits imported to Japan is shown in the table below.

2012 2013 2014 Variety Quantity Value Quantity Value Quantity Value (ton) (Million Yen) (ton) (Million Yen) (ton) (Million Yen) Grapefruit 151,413 14,058 127,301 13,004 106,907 11,936 Orange 130,476 12,647 111,886 12,494 83,553 11,873 Mandarin 20,309 2,515 16,890 2,655 10,258 1,855 Lemon 53,834 6,011 49,230 8,292 47,299 9,822 Lime 2,061 800 2,236 1,021 2,013 1,048 Total 358,093 36,031 307,543 37,466 250,030 36,534 (Source: Trade Statistics of Japan, Ministry of Finance)

Grapefruit imported 2012 2013 2014 Country Quantity Value Quantity Value Quantity Value (ton) (Million Yen) (ton) (Million Yen) (ton) (Million Yen) USA 98,053 9,430 72,261 8,534 58,996 7,828 South Africa 48,120 4,103 50,853 3,978 46,098 3,856 Israel 3,168 346 2,666 337 1,456 208 Turkey 1,639 130 1,520 154 333 38 Taiwan 1 1 1 1 1 1 Thailand 45 10 - - 6 2 Total 151,413 14,058 127,301 13,004 106,907 11,936 (Source: Trade Statistics of Japan, Ministry of Finance) Note: In above table, the figures for Thailand was those of Som-O, being included in the statistics of Grapefruit as there was no independent HS Code available for Som-O. After being allowed to import in 2012, Som-O’s import was 45 tons in 2012, none in 2013, 6 tons in 2014 and none until July, 2015. Orange imported 2012 2013 2014 Country Quantity Value Quantity Value Quantity Value (ton) (Million Yen) (ton) (Million Yen) (ton) (Million Yen) USA 97,304 9,386 74,942 8,317 51,953 7,831 Chile 101 10 - - 24 3 South Africa 4,930 363 4,085 320 5,130 465 Australia 27,717 2,824 32,479 3,760 26,106 3,516 New Zealand 424 64 342 58 340 58 Total 130,476 12,647 111,886 12,494 83,553 11,873 (Source: Trade Statistics of Japan, Ministry of Finance) Mandarin imported 2012 2013 2014 Country Quantity Value Quantity Value Quantity Value (ton) (Million Yen) (ton) (Million Yen) (ton) (Million Yen) USA 16,629 1,790 12,358 1,854 7,510 1,198 Australia 2,097 328 2,473 387 1,627 334 New Zealand 980 300 601 205 624 237 Israel 249 41 1,318 174 432 66 Taiwan 94 25 72 22 65 19 Total 20,309 2,515 16,890 2,655 10,258 1,855 (Source: Trade Statistics of Japan, Ministry of Finance)

Lemon imported 2012 2013 2014 Country Quantity Value Quantity Value Quantity Value (ton) (Million Yen) (ton) (Million Yen) (ton) (Million Yen) USA 36,917 4,418 34,614 5,607 29,234 6,409 Chile 14,331 1,300 13,170 2,424 16,027 3,021 Mexico 1,287 125 654 128 704 131 New Zealand 725 129 529 102 913 194 South Africa 506 32 223 25 420 67 Total 53,834 6,011 49,230 8,292 47,299 9,822 (Source: Trade Statistics of Japan, Ministry of Finance)

Lime imported 2012 2013 2014 Country Quantity Value Quantity Value Quantity Value (ton) (Million Yen) (ton) (Million Yen) (ton) (Million Yen) Mexico 2,059 791 2,234 1,012 1,983 1,018 Total 2,061 800 2,236 1,021 2,013 1,048 (Source: Trade Statistics of Japan, Ministry of Finance)

The import quantity of Grapefruit in 2014 was around 107 thousand tons decreased by 16% from the previous year. Its import amount in 2014 was 11.9 billion Yen, also decreased by 8% since 2013. The import quantity of Orange in 2014 was 84 thousand tons decreased more than 25% from that in 2013. Its import amount in 2014 was 11.9 billion Yen, decreased by around 5%. The import of other citrus fruits such as Mandarin or Lemon is also decreasing. This decreasing trend is mainly attributable to the cost increase of citrus fruits due to bad crop in the USA, the major supply source of the citrus fruits to Japan.

V. Potential of Som-O in Japanese market (1) Quantitative analysis of SWOT The comments and answers of restaurants’ guests and managers collected in the Interview sessions are categorized in elements of SWOT analysis in the table below. The number of answers and comments are used as their points to analyze them quantitatively. To fairly evaluate each answer/comment, no weighed points were used. The criteria of the classification of comments are as follows:- - Strength: Positive comments describing characteristics of Som-O itself - Weakness: Negative comments describing characteristics of Som-O itself - Opportunity: Positive comments describing external market environments of Som-O - Threat: Negative comments describing external market environment of Som-O

Strength Evaluation # Negative # Positive Total Interview with restaurants' guests Comments Comments Fresh, Juicy, Refreshing - 18 Very tasty, Tasty - 13 Clear taste, Light taste, Easy to eat - 12 Page 35 Just right sweetness - 6 63 Ｑ１ Just right sourness - 6 Crispy texture - 5 Nice to eat fresh - 3 Fresh and refreshing taste with just right sweetness - 11 Big in size and looks filling - 7 Page 36 Not too sour - 6 34 Ｑ２ Good crispy texture - 4 Juicy - 3 Easy to eat due to clear and plain taste - 3 Page 37 I want to have Som-O as a fresh fruit - 6 8 Ｑ４ It was tasty and fit to the cuisine - 2 Interview with restaurants' managers As Som-O is a citrus fruit, Japanese tends to prefer - 5 eating it as a fresh fruit Page 38 9 Ｑ１ Could please guests from Thailand or others who - 4 became to know Som-O during their trip to Thailand Want to have fresh fruit, dessert or beverage using Som-O as regular item, if stably available year round - 6 Page 39 with a reasonable cost 9 Ｑ３ Want to have dessert menu as a limited menu of the - 3 best season

Weakness Interview with restaurants' guests Too less sour -10 - Too faint flavor, too less impact in taste -9 - Page 35 Too dry and less juicy -8 - -32 Ｑ１ Som-O does not fit to the cuisine, Could not feel Som-O -5 - taste as background taste is too strong There is little impact in taste/characteristics in Som-O -5 - and its taste is not the one I want to buy Page 36 I do not know the fruit itself nor how I can enjoy it -4 - -16 Ｑ２ It is too big to eat -3 - It is dry and not juicy -2 - Looks hard to peel the skin -2 - Cannot feel Som-O taste due to strong background taste -5 - of dish Page 37 I do not know what is Som-O nor how I can cook it or -5 - -14 Ｑ４ eat it Looks hard to peel as it has thick skin, it's bothering to -4 - part it to small size portions

Interview with restaurants' managers Som-O is little known by Japanese and so we got little -11 - orders and questions Page 38 As the impact of the taste of Som-O is not strong, we -13 Ｑ１ need to devise a way to attract guests' interest like -2 - setting a conspicuous display, to get repeat orders Page 39 There is little order. The sales record does not justify to -2 - -2 Ｑ３ make it a regular menu

Total (Strength + Weakness) -77 123 46

Opportunity Interview with restaurants' guests I might buy it, if there are TV program or advertisement - 2.5 of Som-O introduced by celebrities※ Page 37 I might buy it, if it contains healthy nutrients such as - 1.5 5 Ｑ４ Calcium, Iron or someghing good for beauty※ I might buy it, if it is sold at high-end supermarket - 1 wrapped with quality package※ Interview with restaurants' managers I may use it, if there are effective displays or catch- - 2.5 2.5 Page 39 copies with strong iimpact available※ Ｑ３ I may use it in a seasonal menu in August and - 2 2 September, if available at a reasonable cost※ ※: In above table, each conditional positive comment is counted as 0.5 instead of one (1) point. This is because each positive comment is not strong enough to show their clear intention for purchasing or using Som-O, compared with other comments. They are simply replied as they might buy or may use Som-O, only if certain conditions are met. The point is, therefore, considered to be appropriate counted as 0.5 instead of one (1) point, because the possibility of “buy” or “use” versus “not buy” or “not use” could be 50/50.

Threat Interview with restaurants' guests Page 35 Similar to other citrus fruit (Grapefruit, Hassaku-orange, -7 - -7 Ｑ１ Chinese citron) Page 36 There are many other citrus fruit available sufficiently at -9 - -9 Ｑ２ cheaper prices Page 37 I woulld buy other major citrus fruit -2 - -2 Ｑ４ Interview with restaurants' managers Som-O is available only in a certain period. So it is -2 - difficult to make a regular menu We have so many items already in our existing menu, Page 39 and we may not be able to afford for little known item -2 - -6 Ｑ３ like Som-O It is time consuming to peel Som-O using knife as it has -2 - thick skin, and difficult to handle at restaurant

Total (Opportunity + Threat) -24 9.5 -14.5

Above results are graphically shown in the chart below.

O 40

10 W S

-50 -40 -30 -20 -10 10 20 30 40 50

-10

-20

-30 T

The results of our interview suggest that Som-O positions in the “S x T” quadrant in Japanese market. In addition, we would be able to expect bigger “Threat” as the price comparison with competing fruit, such as Grapefruit or Orange was not included in our interview sessions which are sold at around 100 – 150 yen per fruit, less expensive price than that of Som-O. All of these results suggest that Som-O should be marketed under “Differentiation Strategy” in Japanese market.

(2) Discussions by SWOT analysis Based on above quantitative review by SWOT and results of our interviews to guests and managers of restaurants, we analyze the potential of Som-O as follows:-

1. Strength Unique tastiness different from other citrus fruits The Strong Point of Som-O is its unique tastiness which is different from other citrus fruits. There are various citrus fruits sold in Japan such as Grapefruit, Orange, Mandarin Orange, Hassaku Orange or Navel Orange, etc. Grapefruit has its unique sweetness and sourness. Other citrus fruits like Orange or Mandarin Orange have their own sweet and sour tastes and consumers choose and purchase citrus fruits based on their taste preferences. Som-O also has its own unique taste which is not possessed by other citrus fruits already available in Japanese market which is pointed out by many consumers in this research. Following table presents the different taste characteristics of imported citrus fruits including Som-O.

Comparison of the taste characteristics of imported citrus fruits Fruit Sweetness Sourness Texture Flavor Som-O ++ ++ +++ ++ Grapefruit ++ ++ + + Orange +++ ++ + +++ Mandarin +++ ++ + + Lemon - +++ + ++ Lime - +++ + ++ +++ Strong, ++ Moderate, + Weak, - None

As shown in the table, the characteristics of the taste of Som-O is, moderate sweetness, sourness and flavor which were regarded as “just right” by many restaurants guests, and its strong crispy texture which is very different from other imported citrus fruits. These differences are considered to be Som-O’s uniqueness and strength. Can be differentiated from other citrus fruits Japanese consumers tend to prefer light sweetness even if they take sweet treats like Cake, Pastry, Confectionery or Ice-cream. So, Japanese consumers in general do not like very sweet confectioneries which are often sold in Europe or in the USA. In this respect, the taste of Som-O just fit the taste of Japanese consumers in terms of sweetness and sourness. When you plan to bring little known fruit in Fresh Som-O Spring Roll 49

Japanese market like Som-O, it is very difficult to attract its consumers’ interest without having differentiated taste from other fruits already sold in Japan. As Som-O has its unique taste which is not found in other citrus fruits already sold in Japan, its taste differentiate Som-O from other citrus fruit and it comprises Som-O’s strength. 2. Weakness Low awareness Our research revealed the low awareness of Som-O among Japanese consumers. There were 77 guests (23%) who knew Som-O among total 335 guests responded to our Questionnaire. Namely, 8 people out of 10 did not know Som-O. In addition, many of restaurants managers were reluctant to take Som-O dishes in their regular menu, telling that their guests know little about Som-O and, therefore, it is difficult to get orders for Som-O dishes. According to a marketing theory, there must be a psychological process called AIDMA (Attention, Interest, Desire, Memory and Action) for consumers to trigger their purchasing action. From this theory and results of our research, we see Som-O lacks the first, and probably very important, step, Attention, in the whole process leading to consumers’ purchasing behavior. So, in order to realize the potential of Som-O in Japanese market, we need to have the measures to attract consumers’ Attention to Som-O and elevate its awareness. Short “Best Season” The variety of Som-O allowed to bring in Japan is grown abundantly in Thailand throughout year. However, the best season for Som-O, the period it is eaten most deliciously, is short, August through September. If Som-O dishes were offered in this best season only, it may cause a disappointment of consumers, in case they came back to the restaurants six months later, wishing to have the same Som-O dish which they became to know and enjoyed during Som-O promotion period in August. In contrast, competing fruit, Grapefruit or Orange, are imported almost year round in good conditions and there is little concern for the stable supply and quality variation by seasons. As we cannot change the best season of Som-O, this time- limitation could be one of the bottle necks in selling Som-O in Japan. Too less impact in taste We found small number of comments to the Questionnaire which are opposing to description we wrote above in “Strength” section, telling that Som-O has “too faint flavor and too less impact in taste” as follows:- Too less sour Too faint flavor Too less impact in taste Too dry and less juicy Although these comments are not so abundant, it would be worthy to note that there would be such consumers feeling Som-O like this. Som-O and Coconut Mix Jelly

3. Opportunity High awareness of Thai fruits among Japanese consumers There are many varieties of fruits imported to Japan from Thailand, such as Mango, Durian, Banana, and Mangosteen. Japanese consumers are familiar to Thai fruits as they have many occasions to purchase fruits imported from Thailand in their daily life. On the other hand, import of fruits is incremental also from less familiar countries. When fruits are sold at retail stores or supermarkets in Japan, their country of origin has to be presented as a legal requirement. There are many occasions when consumers become reluctant to buy fruits coming from less familiar countries. If Som-O is imported from those unfamiliar countries for ordinary Japanese consumers, there will be virtually no consumers who want to buy unfamiliar fruit, Som-O, coming from unfamiliar countries. On the contrary, Japanese consumers would feel it safe to buy, even though Som-O is an unfamiliar fruit for them, because it is made in their familiar country, Thailand, and place their orders of Som-O dishes at restaurants by the same reasons. Culture and Habit in Thailand, similar to those in Japan Thailand is one of the most favorite countries for Japanese and the number of Japanese tourists visiting Thailand is continuously increasing from 1.13 million in 2011 to 1.54 million in 2013. This is the far biggest number of tourists among South East Asian countries. In addition, there are many aspects in Thai culture and habit common to those for Japanese. The most notable one is its staple, rice. For the Japanese, it is hard to imagine their life without rice and the same would be true for Thai people. Viewing the culinary culture, we could find another similarity between Thailand and Japan. We both love curry and eat it very often. Talking about the other aspect of culture, Thai massage is now well rooted in Japan. Japanese love massage as Thai people do. In conclusion, the environment in Japan is getting favorable to sell Thai Som-O, as lots of Japanese are expected to feel familiarity and interest in Thai cuisines, reflecting many similarities in culture and habit of both countries.

4. Threat Competition with other citrus fruits Som-O will be in need to face competition with other citrus fruits in Japanese market. We found Grapefruit was most favorite citrus fruits among consumers. Grapefruit is also the fruit most similar to Som-O in shape and taste among citrus fruits. So, the competition with Grapefruit should be considered first. Among four marketing elements (4P: Price, Product, Promotion and Place), Price is the one most directly compared. In our interview to restaurants guests at which price they want to buy Som-O, we got reply varying from 100 yen to 800 yen per fruit, with average price at 359 Grapefruits (M size, County of origin, South Africa), in Keikyu Department 51 yen/fruit. According to our study, the retail price of Grapefruit (imported from South Africa) sold at department store (Keikyu), and supermarkets (Aeon, Maruetsu, Kasumi), were 90 yen to 100 yen/fruit. The retail price of Orange, the 3rd most favorite fruit among citrus fruits, varied around 100 yen – 150 yen/fruit. We believe Grapefruit and Orange will be the items which will compete with Som-O considering their size of fruit and the taste. Orange (M size, County of origin, Though there are certain consumers who wanted to Australia), in Keikyu Department buy Som-O even at higher price like 500 yen/fruit as a premium fruit whom we found in our interview, and it is not appropriate to directly compare their price, because the size and other characteristics of these three species of citrus fruits are different, it will be indispensable to set up an appropriate price-strategy for Som-O, based on more detailed studies on price-competition before launching big promotion activities on commercial basis.

(3) Approach to image building of Som-O (from Japanese view points) 1) Advertisement as a citrus fruit from Thailand As mentioned before, Japan imports many fruits from Thailand like Mango, Durian, Banana, or Mangosteen and Japanese consumers feel familiarity to Thai fruit. So it is very important to do advertisement telling Japanese consumers emphasizing that Som-O is the very popular fruit in Thailand for the image building of Som-O. 2) Advertising Som-O’s unique selling point which other citrus fruits do not have You should identify the unique selling point of Som-O, upon thoroughly studying characteristics of Som-O, such as taste, nutritional value, tasty way of eating or cooking. There are lots of citrus fruits available in Japan, like Grapefruit, Orange, Mandarin Orange, Hassaku Orange, or Navel Orange. They have their own sweetness and sourness. However, Som-O has also its own unique tastiness, sweetness and sourness which is its strength. So, in order to make Som- O conspicuous among those competing products, it is crucial to make consumers understand that Som-O is an entirely different citrus fruit having its own unique tastiness, sweetness and sourness. 3) Promoting fresh Som-O, suiting Japanese consumers’ preferred way of eating As found in the interview session to restaurants’ guests, most of Japanese consumers preferred to eat Som-O as a fresh fruit or dessert, rather than as an ingredient of dishes with strong taste or spiciness. Therefore, it would be faster/easier to have Som-O penetrate into Japanese market, if your marketing efforts of Som-O were focused on its “fresh eating” and “tastiness as a fresh fruit”. 4) Differentiating Som-O from other citrus fruit It will be definitely important to differentiate Som-O from other citrus fruits, especially from Grapefruit and Orange. Grapefruit and Orange are grown widely and abundantly in the USA or South Africa, and thus their prices, either shipping or importing, are less expensive. So it would be difficult for Som-O to be price-wise competitive with these fruits. In order to make 52 expensive Som-O competitive in the market, it is indispensable to different itself thoroughly from Grapefruit or Orange. So, it will be a key to put its own unique characteristics forward and make consumers understand Som-O is an entirely different citrus fruit. 5) Elevating awareness of Som-O among general consumers In order to sell Som-O widely in Japanese market, it is very important to elevate consumers’ awareness onto Som-O. For this purpose, promotional activities such as advertising Som-O in various media (TV, Radio, SNS, Newspaper, Magazine), Thai festivals, promotion at retail stores with sample tasting or promotion using Thai restaurants, something Office of Agricultural Affairs, Royal Thai Embassy has done this year, will be indispensable. More important is, however, to do such promotions continuously every year, not having them as one year events, not only repeating same events but adding novel events/campaigns until you get consumers’ awareness at a certain level. 6) Promotion of Som-O to distributors in Japan In addition to the promotion of Som-O to general consumers in Japan, it is also important to do promotion to the related businesses in Japan who actually handles Som-O. To do such promotions, it would be important that Thai Embassy to play a central role to organize the venue for meetings and discussions by growers or exporters in Thailand and importers, distributors or retailers in Japan, say by inviting such parties in Japan to Thailand.

VI. Appendix-1 Som-O dishes/ Satisfaction level

Please refer Table-II-2 Questionnaire for Som-O in page 9. Following able show guests’ comment on taste/quality, volume, healthiness, innovativeness and dish display of each Som-o dishes.

Q4_2_1 Please give us your comment on Som-O dish that you had (Taste/Quality) （Single Answer, hereinafter “S.A.”） (%)

Very unsatisfied

Very satisfiedVery

unsatisfied

Satisfied

N.A.

No.

335 1.8 3.9 56.1 37.0 1.2 Total Tom Yum Som-O 201 2.5 2.5 57.7 35.8 1.5 Fresh Som-O 40 0.0 0.0 52.5 45.0 2.5 Fresh Som-O Spring Roll 16 6.3 0.0 31.3 62.5 0.0

Q4_1 Crispy Spicy Fish Salad with Som-O 0 0.0 0.0 0.0 0.0 0.0

Kaeng Khua Som-O 21 0.0 0.0 57.1 42.9 0.0 Som-O and Coconut Mix Jelly 57 0.0 14.0 59.6 26.3 0.0 N.A. 0 0.0 0.0 0.0 0.0 0.0

Q4_2_2 Please give us your comment on Som-O dish that you had(Volume of Som-

O) （S.A.） (%)

Very unsatisfied

Very satisfiedVery

unsatisfied

Satisfied

N.A.

No.

335 2.4 9.6 52.2 34.6 1.2 Total Tom Yum Som-O 201 3.0 7.5 56.7 30.8 2.0 Fresh Som-O 40 0.0 7.5 50.0 42.5 0.0 Fresh Som-O Spring Roll 16 12.5 6.3 31.3 50.0 0.0

Q4_1 Crispy Spicy Fish Salad with Som-O 0 0.0 0.0 0.0 0.0 0.0

Kaeng Khua Som-O 21 0.0 4.8 47.6 47.6 0.0 Som-O and Coconut Mix Jelly 57 0.0 21.1 45.6 33.3 0.0 N.A. 0 0.0 0.0 0.0 0.0 0.0

Q4_2_3 Please give us your comment on Som-O dish that you had (Healthiness) （S.A.） (%)

Very unsatisfied

Very satisfiedVery

unsatisfied

Satisfied

N.A.

No.

335 1.8 4.2 60.9 30.1 3.0 Total Tom Yum Som-O 201 2.0 2.0 63.7 29.4 3.0 Fresh Som-O 40 0.0 2.5 60.0 35.0 2.5 Fresh Som-O Spring Roll 16 6.3 12.5 25.0 56.3 0.0

Q4_1 Crispy Spicy Fish Salad with Som-O 0 0.0 0.0 0.0 0.0 0.0

Kaeng Khua Som-O 21 0.0 9.5 66.7 19.0 4.8 Som-O and Coconut Mix Jelly 57 1.8 8.8 59.6 26.3 3.5 N.A. 0 0.0 0.0 0.0 0.0 0.0

Q4_2_4 Please give us your comment on Som-O dish that you had (Innovativeness)

(S.A.) (%)

Very unsatisfied

Very satisfiedVery

unsatisfied

Satisfied

N.A.

No.

335 2.4 7.5 50.7 37.6 1.8 Total Tom Yum Som-O 201 2.5 5.0 49.8 41.3 1.5 Fresh Som-O 40 0.0 17.5 45.0 35.0 2.5 Fresh Som-O Spring Roll 16 12.5 0.0 31.3 56.3 0.0

Q4_1 Crispy Spicy Fish Salad with Som-O 0 0.0 0.0 0.0 0.0 0.0

Kaeng Khua Som-O 21 0.0 0.0 61.9 38.1 0.0 Som-O and Coconut Mix Jelly 57 1.8 14.0 59.6 21.1 3.5 N.A. 0 0.0 0.0 0.0 0.0 0.0

Q4_2_5 Please give us your comment on Som-O dish that you had (Dish display) (S.A.) (%)

Very unsatisfied

Very satisfiedVery

unsatisfied

Satisfied

N.A.

No.

335 2.4 9.3 55.2 31.3 1.8 Total Tom Yum Som-O 201 2.0 7.0 53.2 35.3 2.5 Fresh Som-O 40 2.5 12.5 60.0 22.5 2.5 Fresh Som-O Spring Roll 16 6.3 0.0 37.5 56.3 0.0

Q4_1 Crispy Spicy Fish Salad with Som-O 0 0.0 0.0 0.0 0.0 0.0

Kaeng Khua Som-O 21 0.0 0.0 76.2 23.8 0.0 Som-O and Coconut Mix Jelly 57 3.5 21.1 56.1 19.3 0.0 N.A. 0 0.0 0.0 0.0 0.0 0.0