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Business Plan Hothands Essay

4035 words - 17 pages


June 2014

Amber (Yu Wei) LIU
Sarah ZINS

Table of Contents

Executive Summary

Company Information
Kobayashi Pharmaceutical Co., Ltd. is a Japanese company that performs headquartered in Osaka. Listing of the shares is a relatively recently in 1999 and (OSE 2 parts), we have listed in the First Section of the Tokyo Stock Exchange today. Kobayashi Pharmaceutical begins hand warmer business that the Group acquired Kiribai ...view middle of the document...

3. Company Strengths
Our most important strength is expanding the overseas business aggressively and growth of its net sales. The Kobayashi Pharmaceutical Group is aggressively investing in our core products of hand warmers for the forehead primarily in the U.S., China and Southeast Asia in an effort to expand sales from the segment. As a result, overall net sales of the overseas business in the fiscal year ended March 2013 increased 17.2% year over year to ¥9,500 million (about $95 million). We are accelerating overseas business expansion through aggressive investment.

4. Form of Business Organization in the world
The Kobayashi Pharmaceutical Group established a subsidiary in the U.S., China, the U.K., and Australia. As a core base of these area, we sell six brands to the more than 40 countries now. There are 29 consolidated subsidiaries (11 in Japan and 18 overseas), and 2 affiliates in Japan accounted for by the equity method. The Group has 22 consolidated subsidiaries in customer products, 1 consolidated subsidiary and 2 equity-method affiliates in Medical Devices and 6 consolidated subsidiaries in other business.

3. Company Goals and Objectives
We will aim to record the 16th consecutive year of an increase in net income, while also working to increase both sales and income. We will focus all of our effort on developing and cultivating new products essential to the growth of the Kobayashi Pharmaceutical Group and continue with our aggressive investments in our growing overseas business. Our goal is to reach net sales of ¥20,000 million (about $200 million) from our overseas business until 2015 by pursuing a marketing strategy created at local subsidiaries tailored to each market and through aggressive investments including M&A. Therefore, hand warmer business, which is the core of overseas business, is the most important key of growth.

Products and Services

1. Description of Hand Warmer
Hand warmer is used to warm the body when it is cold. It has been used by people since around 1978. This effective use of the heat generating when iron powder oxidize. Hand warmer is made on the combined five components, iron powder, water, salt, vermiculite, and activated carbon. It start the generation of heat on touching with air and can use for 12 hours for mini size, so it is disposable. The package bases on a special film which can block to come air inside. Hot Warmer body has the micropore because iron powder need to touch air to oxidize. In addition, hand warmer in Kiribai, which is subsidiary of Kobayashi Pharmaceutical Group, has a good reputation in quality, such as sustainability of temperature and good feeling.

2. Competitive Advantages of the Product
The Kobayashi Pharmaceutic Group has several advantages over its leading competitors:
* Started exporting in 1990s
* Expanding abroad in 20 countries
* No. 1 share of hand warmer in the world
* 90% brand recognition rate in urban China

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