MARKETING MANAGEMENT

Kelompok VII
DIAN ATIKA RAFIKA - RERY INDRA KUSUMA

Content
Case Summary
Main Issue
Problem Statement

Analysis
Recommendation

Case Summary
Year

1917

Toto was established with a vision to

disseminate new hygienic living customs
throughout the country by introducing flush
toilets during an era when most of Japan still
lacked a sewage system. The company quickly
gained a dominant position and grew aling with
the industry as the government invested in
developing a sewage infrastructure.

Visi TOTO

1964

TOTO began selling a bidet toilet made by

American Bidet Inc.

Selling the Washlet in

Japan: a bidet toilet

1968

Only 18% of homes in Japan had flushing toilets

connected to a sewage sytem.

Flushing Toilet

Case Summary
Year

1979

Sales had reached only 500 units per month.

The product had technical problem, and
management felt that American Bidet was not
responsive enough, so TOTO decided to
develop its own bidet toilet.

A bidet toilet sales

growth slowly

1980

When people connected to the system, most

purchased a Western-style toilet.

TOTOS opportunity

1989

TOTO focused on the mid to high-end

segments, which accounted for 77% of the
market.

TOTO entered the U.S.

1992

Leveraging water efficient technology already

developed for the Japanese market, TOTO
gained a foothold.

TOTO Is the only

player initially able to
meet the constraints
of the regulations

Case Summary
Year

1980-2006

Bidet-toilets accounted for the vast majority of

the growth in the overall Japanese toilet
industry. Sales increased almost tenfold.

The Washlet as a major

component of TOTOs
growth in Japan

2000-2007

Washlet sales had grown at a double digit rate.

Washlet sales grown in

U.S.

2001

TOTO had a 15% share in its target market

TOTO

2003

Both sales and profits TOTO USA had been

growing at about 20% a year since then. TOTO
had offered Washlet seats and provided
maintenance and service for Washlets.

TOTOs USA first

profitable

2005

TOTO had announced its own Eco-product

certification system.

TOTOs products
inovation in the U.S.

Case Summary
Year
2006

TOTO had a tradition of design excellence.

TOTO opened a Washlet kiosk at The Galleria
Mall in Fort Lauderdale, where people could
see a product demonstration.

TOTO developed a
product line.

2007

TOTO launched Clean Is Happy marketing

campaign, which incorporated multiple media
including websites, billboards, and print ads.
TOTO was the No. 2 player with 28% share in
its target market after Kohler, which had 34%.

TOTO launched unique

holistic

2008

25% of toilets were sold bundled with a sink

and bathub. Consistent with its high end
positioning and commitment to design , TOTO
had opened Galleries in New York, Los Angeles,
Fort Lauderdale, Chicago and Boston.

TOTO developed into

the leading Japanese
manufacture of
bathroom and kitchen
products

Main issue: Competition

TOTO had experienced tremendous success since
entering the U.S. market in 1989, but the vast majority of
these sales were traditional toilets. Bidet toilets made up
less than 5% of TOTOs U.S. toilet sales. In contrast, bidet
toilets were instaleed in 63% of houses in Japan, and 41%
of TOTOs toilet business in Japan from Washlet.
In Japan, Competition had helped create consumer
awareness of the bidet toilet category, but in the U.S.,
competition was just beginning to emerge.

Main issue: Competition

Inax,
Totos primary Japanese
competitor, had entered
the U.S. market in 2010

Brondell, based in San

Francisco, was start-ups
in the space. Prices
ranging much lower than
Totos

Kohler, had kaunched an

attachable bidet toilet
seat in 2007.

Flushable moist wipes , the bidet toilet

concept which faced competition in
the U.S. in 1990-2000, as an alternative
traditional toilet paper. NuWay Corp
introduced Moist Mate, Kimberly Clark
with Cottonelle Fresh Rollwipes and
Playtexs Wet ones Fresh n Flush and
Georgia-Pacifics Quilted Northern
Moist Ones.

Problem Statement
Why was the Washlet so successful in Japan, yet struggling to
achieve any significant penetration in the U.S.?
What should Sako be doing promote the washlet more
effectively?
Should Sako just be happy with TOTOs overall success and not
continue promoting Washlet sales aggresively in the U.S.?
Hows the plumbers network played such a role at the Washlet
in the U.S.?
How could TOTO better reach possible target for American
tourist and business travelers who visited Japan ?
Hows to positioning TOTOs brand ?
Why Sako was just focus on traditional toilets for the
foreseeable future?

Analysis: Washlet so successful in

Japan
TOTO took advantage of its dominant position
in the toilet industry to push the product.
TOTO had tremendous influence with the
countrys network of 50,000 plumbers, who
played a major role in influencing consumers
purchase decision for home renovations.

Analysis: Promote the washlet effectively

Clean is Happy campaign included print ads, brochures,
promotional events, a website (cleanishappy.com), and billboards
throughout New York, including one mounted in Times Square. The
campaign, which featured the bottom line of men and women.
TOTO Washlet launch began airing TV commercials.
Unusual nature of TV commercials generated strong word of mouth
communication and high levels of awareness.
TOTO sent demonstration van, equipped with a Washlet and invite
people in the community to see and experience the product.
TOTO aldo conducted a trial period promotion, enabling
consumers to return the Washlet if they were unhappy with the
experience.
TOTO had achieved some penetration in the residential sector,
asking public venues such as hotels, department stores, restaurants,
stores, and golf clubs to install Washlets.

Analysis: Challenges in the U.S.

There are four factors to exposure the bidet toilet in the U.S.:
Lack of infrastructure.
Consumer who wanted to install an integrated bidet toilet had
to pay an eletrician
Influence on the distribution system.
If TOTO could influence the plumbers, they dont have any
influence on the purchase decision.
Consumer culture / behavior
Bidets had almost no adoption in the U.S. so the concept of
cleansing with a stream of water was unfamiliar.
Perception of the toilet category
In the U.S., people didnt associate toilets with high technology
or electronics.

Analysis: Plumbers network played such a

role at the Washlet in the U.S
Sako was concerned that if he continued to
use the same approach to marketing the
Washlet in the U.S. as in Japan, it might never
be successful.
One option was significantly shift the
marketing strategy from consumer demand
creation to aggressive selling by somehow
developing network of change agents. In
Japan, the plumbers network played such a
role at the Washlet launch.

Analysis: Possible target for American

tourist and business travelers in Japan
Begin distribution through the Do IT Yourself
(DIY) channel.

TOTO Cut prices

OR

TOTO Create a low-end

product

Analysis: Positioning TOTOs brand

Consistent with its high-end positioning and
commitment to design, network of TOTO
Galleries are in New York, Los Angeles, Fort
Luderdale, Chicago, and Boston.
Katz Nojima, VP Sales for TOTO USA explained
TOTO was a prestigious high-end brand image
given the superior quality of our products.
Employees focused their efforts on establishing a
good reputation with architects, interior
designers, and contractors.
Positioning TOTO was clean product changed
to a green product.

Analysis: Focus on traditional toilets

TOTO had a tradition of design excellence

which established a Universal Design Research
Center as pasrt of its R&D center in
Chigasakai.

Recommendation

If we could compare Washlet in Japan and the U.S., there

were treats the toilet differently.
TOTO should use different approach to marketing the Washlet
in the U.S. as in Japan to reach successful sales.
TOTO should more aggressive selling Washlet in the U.S. by
somehow developing the network of change agents.
Change the positioning of the Washlet from a clean product
to a green product so that TOTO could leverage the fast
rising green movement in the U.S.
Make some new innovations
Expand sales in other countries.