Chapter 7: Business Marketing

      Because of the characteristics, Sanrio often offers products for its consumer more than business. Instead, Sanrio is the customer of business markets. An example is business service that Sanrio signed with World of Licensing in August this year in exerting itself to open their market in African and East Asia. This is a part of their global marketing strategy. The licensing service included: 

• Licensing consulting and contract negotiation
• Innovation, design and product development for retailers, distributors and manufacturers 
• Local and international marketing and design support
• Insight gathering and consumer research to drive potential innovations and marketing strategy to ensure the best returns for the licensees investment.

Sanrio also sells their products to other businesses, such as big wholesaler and retailer Walmart, K-mart etc. Brand of Hello Kitty was sold to Forever 21 to create new collection of clothings and assessories earlier July this year.

 

Chapter 8: Segmenting and Targeting Markets

             Sanrio is one of the good example for the market segmenting. Deeply focus on its consumers, all the products that Sanrio created are made to serve its purpose, "small gift, big smile". As we well know, Hello Kitty and other character brands are "girly things" - means that women are its basic customer. Depends on each product line, they will follow a different segmentation. Dolls, stationary, school supplies, clothing etc target to girls from 4-10. Cosmetics, accessories, jewelry target to teens. Household tools, luxury products, fashion clothing designs target to girls who are Y generation, loyal to Hello Kitty before and willing to buy its products again to entertain themselves and sooner turn to be a Hello Kitty gift giver to their friend to make them happy. In psychology, the brand that Sanrio made for Hello Kitty is extremely successful. The cat's face are seen everywhere and it satisfied a customer's need, to be recognized. They created a new trend, another lifestyle, in Japan and it is spreading around the world, you can be pretty and cute in the same time, just like Hello Kitty. All the successes came from their smart marketing research to  recognize the target consumer, what they need and what they want and characteristics of each target market, from here every Sanrio's products was made to bring the smile for everyone. 

Pink Hello Kitty nursery are suitable for new born baby girl, can be a gift, Hello Kitty mom's fan or just because it looks just so good for a girl!

Chapter 11: Developing and Managing Products

Working in gift industry, product proliferation is a key and Sanrio knows how to take advantage of it. Inventing new products and constantly creating new characters and co-branding its own  with other major companies are helping Sanrio spreading the brand. It is not strange to see in almost girl products having Hello Kitty face on its.

Sanrio’s strategic approach to competitive advantage is to determine what the needs of their customers are and developing the appropriate products to meet those needs.  The company achieves this by turning an ordinary item into an aesthetically pleasing gift without sacrificing the functionality.  The merchandise is differentiated from “normal” merchandise by bearing the Sanrio brand of characters and design. Ordinary items like pens, paper, and kitchen appliances become a new and visually pleasing product that customers are willing to pay more money for.  Of course, the Sanrio products are not more advanced or sophisticated than the more ordinary counterparts, but they satisfy the customers’ need for novelty.

Becks goes pink!
"There a Hello Kitty everything"

Chapter 16: Integrated Marketing Communications

          Marketing and communication stands a high level importance in Sanrio. The products themselves are called "social communication gifts", based on their concept everybody is a gift giver. Each item brings different design but always carry a message "small gift, big smile". The biggest event of Sanrio so far, happened on 2010, Sanrio's 50th anniversary party, hosted in Los Angeles. This was the first time that Hello Kitty and other characters such as My Melody, Little Twin Stars, Chococat, Tuxedo Sam, Badtz-Maru, Keroppi, of Sanrio appeared together. Kicking off a 10-day, open-to-the-public, celebratory "Small Gift Los Angeles" spree of Hello Kitty sushi-making and cupcake-decorating classes, DJ dance parties, Hello Kitty Sephora makeup tutorials, and Sanrio-inspired art installations from 50 artists across 11 rooms, this opening gala offered everything that Sanrio-loving celebrity guests could desire: Sanrio-flavored Yogurtland and Beard Papa's treats, old-school Japanese arcade games, a pop-up shop selling 50th anniversary collectibles, a dress-up photo booth, a Hello Kitty miniature golf course (where Erik Estrada, of all people, was spotted putting), food trucks, a Ferris wheel, and, perhaps most thrillingly, all the sake and soju guests could gulp.... (http://music.yahoo.com/blogs/heard/pop-stars-look-pretty-honor-hello-kitty-at-sanrios-50th-anniversary-bash.html) It was called a Hello Kitty paradise for its fans. In this event, all 4 elements of promotion mix were applied, personal selling, advertising, sales promotions and public relations.

Chapter 10: Product Concepts

          To be successful and survived for over 50 years, Sanrio has a diversified products system. Owning famous brands in gift industry, such as:  Pochacco, Badtz-Maru, Keroppi and special 6 billions phenomenon Hello Kitty, Sanrio markets their products to women as as girls by extending its product line to include household appliances and accessories to the narrow product line. The product line consists of stationary, greeting cards, school supplies, dolls, accessories, candy, utensils, and health and beauty aids.  The health and beauty aids are contact lens and eyeglass cases, vanity organizers, toothbrushes, and so forth.  Adding the functional merchandise like coffee makers, microwaves, toasters, and vacuum cleaners attract older women who may have owned Hello Kitty merchandise in their youths. Sanrio's designers are working very hard every year to add more than 6000 new items, making width and depth of their product lines.

          Sanrio also uses co-branding as a strategy to extend their market. For example, Sanrio collaborate with Sega who owns Sonic to create new adorable character by combine Sonic and Hello Kitty. Sanrio and A Bathing Ape have struck up a licensing deal to create range of novelty items and accessories devoted  to Bape's signature Baby Milo character, hoping capturing more boy customer since their original products are pretty girly. The list of co-branding companies with Sanrio includes: Sanyo - most of Sanrio's electronic products, Eva Airline - Hello Kitty air bus, AGIP(Azienda Generale Italian Petroli) - Hello Kitty oil can....

Sonic X Hello Kitty doll