Chapter 18: Sales Promotion and Personal Selling

        One of the most well remembered promotion of Sanrio of course belonged to their biggest brand Hello Kitty. Jan 2000, their 40 days promotion cooperated with MacDonald called Extra Value Meals was released in Singapore. 4000 pairs for each of 6 set of Hello Kitty and Dear Daniel dressed in wedding dresses of different cultures were sold at cost price along with any MacDonald purchase. It was quickly became a big hit and also chaos. Thousands of people turned up to buy the toys with the Extra Value Meals, with crowds forming as early as sunrise, and in some instances, the night before. The overwhelming response was unprecedented in McDonald's history, initially catching them unprepared with logistics and security support needed for such a massive crowd control. MacDonald also received many complaints from another quarters: businesses, government ministries and boards because the queue line affected their businesses. Normalcy returned to McDonald's restaurants on 3 February. In total, 2.8 million toys were sold during the promotion. But the promotion was well-remembered more for the madness it created and, as some commentators highlighted, "Singaporeans' penchant for queuing".

        Talk about the personal selling at Sanrio, the most important thing is every employee that works for Sanrio was trained to be cheerful, making the customer service pleasant because their customer are children. 

One of promotion Hello Kitty set from Extra Value Meal. Each doll costs $3.50 with every MacDonald purchase

Chapter 17: Advertising And Public Relation

          Being successful for over 40 years, the biggest brand of Sanrio, Hello Kitty, is running in a different path with her opponents. Hello Kitty is not going to public through regular media methods like Walt Disney cartoon characters. She doesnt have many stories of her own, she is just simple a cat without a mouth and still likely keeps it that way. But by a smart way to cooperate with other brands and companies, Hello Kitty's products will come to their customers by special campaigns.  For example, the airway’s adorable marketing strategy has attracted some avid travelers from carriers that fly the same routes. The load factor on Hello Kitty flights averages 80 percent to 90 percent, about 5 percent to 10 percent higher than EVA’s average on those routes before the Hello Kitty jets were introduced. Duty-free, in-flight sales of 13 kinds of Hello Kitty products generate some revenue, too. (http://www.businessweek.com/articles/2012-06-25/flying-the-friendly-and-cutesy-skies). Yet, Sanrio isn't camera shy or reluctant about being part of the entertainment world. The company recently garnered huge publicity when Hello Kitty and Lady Gaga were featured on Bravo Network's "Double Exposure" show and "Life in the Fab Lane with Kimora Lee Simmons".

         Sanrio focuses on building Hello Kitty's image. In the wake of the devastating earthquake and nuclear disaster in Japan, Tokyo-based Japan Tourism Agency has collaborated with Sanrio, creator of Hello Kitty, to develop a special iPhone app called "Visit Japan With Hello Kitty". The app features 53 different Hello Kitty in different customs, stays for different cities in Japan. Let say if you go to Tokyo, there a Hello Kitty in cherry blossom custom (this city is famous and be known for this flower) will pop up and being a tour guide to local landmarks and also appear on photos that you take. The newest campaign which starts on mid-October, 2012, calls Hello Kitty For President, adding a playful punch for this busy election season. Hello Kitty's. Friendship Party street teams and door-to-door canvassers will give away free Hello Kitty for President campaign bumper stickers, buttons, and yard signs throughout Washington, DC.  Hello Kitty will also make appearances leading up to election week, culminating in a Sanrio-style celebratory event before the election votes are tallied. "This campaign is a celebration of what she represents: friendship, fun and happiness."- says Jill Koch, Senior Vice President of Brand Management and Marketing, Sanrio, Inc. Fans also can vote for her vice-president, another Sanrio characters: Chococat, My Melody, and Keroppi, through their facebook page. Hello Kitty for President is the only election campaign where everybody can come together and vote for friendship, fun and happiness! 

This election season, Hello Kitty wants red, white and YOU! She’s throwing her bow into the ring for President of the United States and invited you to join the Friendship Party. Vote for friendship, fun and happiness with Hello Kitty!

  

Chap 15: Retailing

       Sanrio is among the Top Five License Brands in the world with offerings for both the mass and luxury markets and everything in between - 30,000 retail outlets worldwide spanning 70 countries. They are also offering franchising and subsidiaries. Through their corporate website, a business person can apply to own and operate one of the Sanrio, Sanrio Smiles or Sanrio Gift Gate stores. Sanrio Company also offers the option of allowing current business owners to carry the Sanrio product line in their stores. Almost all the gift or children boutiques are carrying Sanrio's products, especial Hello Kitty brand. They even franchised themed restaurants and Hello Kitty cafes in Japan and Taiwan.

      Profit is rising as Sanrio added Wal-Mart, the world’s largest retailer, as one of its licensees in the U.S. Wal-Mart stores that sell clothes, stationery and other products featuring Hello Kitty may reach about 3,000 of the 4,427 total in the U.S. by the Christmas season in December. Sanrio also has a licensing agreement with Target Corp., Wal-Mart’s closest rival.

      In order to work around the fragmentation, Sanrio franchises stores to business owners who will run the store according to the parent company’s standards. The stores’ setups are usually the same and strategically placed in mall areas with large display windows. Because the branded merchandise is unique, the store manager must order the product in small unit quantities so that there will be high turnover. With the company costs being reduced by franchising, Sanrio is able to open more stores across the country and penetrate new areas. In U.S, they offer business opportunity for wholesale, boutique and licensing. According to their website, $400,000 is the financial requirements for Sanrio Boutique Store licensee candidates and estimated ranges of costs. http://www.sanrio.com/business-opportunities/

      Beside all of those above, Sanrio also operate their own website for shopping online. Their customers can easy search and buy a genuine Hello Kitty or any other line product. With this website, all the promotions and special offers and reach their customers faster, adopt their desires and changing of the markets. www.sanrio.com

Hello Kitty retail store at Time Square

Chapter 6: Consumer Decision Making

       Most of consumers of Sanrio is women, depends on each country, it will be children, young women or all ages of women. Japan is one of the biggest markets. In Japanese culture, it is important being cute. Like Brian Bremner used to write in Bloomberg, "In Japan, cute conquers all". "Kawaii" means cute, cuteness. In this country, where the birthrate is one of the lowest in the world, mothering skills are not as common as other places. “Psychologists believe that cuteness is a function of resemblance to human infants, to whom we're programmed to respond sympathetically because of their  helplessness.” Garger, Ilya. Through "kawaii" Sanrio reach their Japanese consumer's needs and wants. Their characters in general or especial Hello Kitty are so adorable. Small, round and animal-alike are exactly what is cuteness about, Hello Kitty is made just for people to hold.  Beside, business women in Japan has to work harder than men in order to establish a credible image. They want to find back their childhood innocence. And Hello Kitty is there, reminds them about their peaceful and happy times. There is nothing look more simple, cute and innocence like Hello Kitty. She even doesnt have a mouth, so a customer can put her own emotion on her, sad or happy. It is such a supportive kitty!

       The second market that important with Sanrio is America. In here, children love Hello Kitty as much as she was loved in her home country. The appearance of the kitty is importance due to children here watch TV more often. The colors, white, red and pink are theme colors. Pink makes people happy. And the way Hello Kitty dresses attracts children and young girls. Sanrio's designers knows how change the appearances of Hello Kitty to make her fresh but still simple, attractive and cute. Plus when a girl like Hello Kitty when she was kid will likely keep buying because Hello Kitty can remind them about their youth and the merchandise lines are long and wide. You can find everything, from the little thing like eraser, pencil to the big thing like bed, TV, car, from the cheap one with $0.50 or thousand dollars for a Swarovsky  necklace or $32,000 for a Hello Kitty doghouse, no kidding! The collectors can keep collect and searching for items they want, normally unique or limited quantity to satisfy their love and feel youthful.

 

Most Expensive $32,000 Hello Kitty Doghouse, Make by 7600 crystal beads