Ina Food Industry Co. Ltd (“Ina Food”) is located in the city of Ina, Nagano Prefecture, surrounded by towering mountains of the Japanese Alps. Tsukakoshi Hiroshi, 75, president of the Ina food, led the company through an incredible 55 years of continued revenue and earnings growth. The company is a leading manufacturer of agar powder, a byproduct of traditional seaweed gelatin. During the summer of 2012 is Tsukakoshi through the windows of his office in the city of Ina. Think about how your company intends to be a company that is aware of the global environment. He feels he has done a good job so far. the company has flourished and has no urgent problems. However, we also believe that there should just sit back and enjoy your success. He faces retirement and concerns about the long-term business growth. He thinks it might be a good time to introduce new marketing strategies for the company. There is also another concern: deflationary situation in Japan, continuing for 20 years. He is interested in increasing sales volume and profits by raising prices when most of the other companies under their deflation. In this environment, even holding constant prices means a relative price increase. Tsukakoshi believes that the company relies on the competitiveness of their products, there are ways to raise prices and increase profits in essence. The key is to raise the price of goods and services so that customers can accept. The price increase in a difficult economic climate is a risky decision. However, the company was able to increase the price of deflation. While the Japanese economy is facing serious difficulties, the company has achieved good results through marketing, production, financing and distribution of resources.
Source: University of Hong Kong
Release: Aug 13, 2013. Prod #: HK1011-PDF-ENG
Ina Food Industry (2): Marketing Strategies a case settlement deflationary environment