Office of Agricultural Affairs Royal Thai Embassy Kotaki Terrace C. 3-13-22, Meguro, Meguro-ku, Tokyo 153-0063 Japan Research on Som-O (Thai Pomelo) Promotion in 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 1 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. 2 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. 3 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 4 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