Planeamiento y Dirección en Marketing

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Universidad San Ignacio De Loyola



Ito Yokado Case

Curso:

Planeamiento y Dirección en Marketing


Bloque:

FC-MKT PLADIRMK


Integrantes:

Carrasco Palomino, Lucero Alejandra

Diez Canseco Murguía, Daniel Alonso

Oyola Díaz, Victor Rodolfo

Sedano Talledo,  Sergio Alessandro

Index

1. Co’s philosophy, Mission, Vision, Culture, competition……………………………………………..
   
2. Hypotesis ……………………………………….
   
3. List of the Facts ………………………………..…
4. Analysis Facts ……………………………………….

1. Problem…………………………………………….…………
   
2. Brainstorming of possible solutions……………...……
3. Anaylisis of possible solutions………………….

1. Recommendations……………………………………

1. Co’s philosophy, Mission, Vision, Culture, Hypotesis

• Co´s Philosophy

Masatoshi Ito was the fundator, president and principal actionist of Ito Yokado. In 1960 he converted an small family business into a 384 millions yens. Ito visited some famous chains of supplies as J.C., Penney, A&P, Safeway, and Sears. In 1965 he made grow Ito Yokado into a 8 warehouse chain.

Culture

Ito Yokado culture was a less luxury warehouse than the others but it got a more diverse socioeconomic profile. They offered products of daily use. These warehouses were usually situated in the train stations terminals.

• Mission

“As you all know, in Japan and probably other parts of the world, the consumers tend to change habits and needs, that’s why consumers are more prudent in their buying. This is why we have to be in constant change”     Masatoshi Ito.

• Vision

Masotashi Ito was convinced that Japon was prepared to the sales in big warehouses just like the United States.

• Market

In 1955 the Japanesse parlament got a law “ley de grandes almacenes” that was destined to protect small business by limit the growth of bigger business.
In 1964 Japan hosted the Olympic Games. This made that highways were asfalted and Tokyo got a bigger metro.

Between 1964 and 1970 remuneration for hour worked increased by 131% in Japan while the prices of products increased just in 38%.

Crisis in petroleum between 1973 and 1978 had an impact in consumers demand.

In 1988 Japan was one of the most poblated countries of the world. 120 million people over 155,000 km².

• Consumer

In 1970 consumer prices increased at an annual rate of 6.2% while the increase in PNB was only of 4.4%

In 1972 the consumer habits were changing quickly. Percentage spend in first need products like cloth and food was decreasing while the percentage in cars, electrodomestics and fashion cloth were increasing.

• Competition

There existed a lot of diversification in the competition.

There existed supermarkets (York-Benimaru, TorkMart, Life, Sanei)

Big category warehouses (York-Matsuzakaya, Robinson’s)

News stores (Mary Ann, Steps, Oshman’s)

One discount shop with lasting products (Daikuma)

Restaurants (Denny’s, Famil, York Bussan)

Food transformers (Kanseien, Nihon Nosuisan, Daily Foods, York Seika)

1. Hypotesis :

 H1: ¿The confidence in all jerarchy workers, creates a weakness in the company?

1. List of the Facts:

• Commercial Area

• In 1960, he had converted the 6-square-meter household clothing business in Tokyo, where he began work at the end of World War II, at a company of 348 million yen under his exclusive command.

• In 1965 the company had grown into a chain of 8 department stores, all under the new flag of Ito Yokado.

• Category (CS) supervisors acted as primary intermediaries between buyers at headquarters and stores.

• The head of the department held meetings at each floor every morning to transfer the information obtained in the weekly meetings, report on the previous day's successes and announce goals for the following day.

• The company PR for atun concentrates its purchases on a limited number of large wholesalers and commercial companies, specifying where the fish should be caught and when it should be frozen.

• Ito Yokado clothing is divided into seven categories: traditional kimones and accessories, novelties, men's clothing, costumes and accessories and women's clothing.

• The clothing department of the store had a team of 80 full-time and 60 part-time employees.

• The process of creating the spring clothing store for skirts, trousers and shorts was started by buyers of the merchandising division at headquarters and during the previous summer

• Marketing Area

4PS

Product

The Ito Yokado group was a Japanese store chain of supermarkets 7/11 and other retail stores, as well as restaurants whose sales figure in 1988 exceeded 2096 billion yen.

Price

The price naturally is just one of the variables that make up the value and we are worrying that our customers think of more than low prices when they think about Ito Yokado.

Promotion

• They are raising the tone and content of advertising using television and quality media.

Place

• They are remodeling the interiors and exteriors of the stores improving the presentation systems to fit the more agile and fresh philosophy that encourages your selection of articles
•   That year they opened an Oshmans sporting goods store and their second store RobinsonIn February 1981, Cranor reviewed the first results of the expansion and among the results it was noted that the figure indicated resistance by the chains of stores to allocate exhibition space for Grandma's products.
• The stores were grouped into eight areas with about 16 stores each.

• Finance

• In 1982, Ito Yokado found its margins very low, were the name of what came to be called the program of reforms.
• The procedure for tuna was similar except that it required an hourly attention to stocks. Which would require an additional level

• Sales

• In 1988 Ito Yokado operated 131 stores with a sales volume exceeding yen billions and 27779

• Ito Yokado began to diversify its activity into other forms of retail

• In the most profitable unit of the Ito Yokado empire, with a network of 3304 stores and net profit of 189 billion yen on sales of 599.1 billion yen.

• The responsibility for the control of sales and inventory is delegated from the headquarters to the store executives and through them to employees of lower level of full and partial dedication

1. Analysis Facts

• Commercial Area

Analyzing the commercial area we can realize that the company had a good job in this area since in 19665 the company had become a chain of 8 department stores, all under the new flag of Ito Yokado, this was a fundamental point for That the company continues to grow, had a good work in the commercial area having a constant monitoring with the workers of the commercial area of the company through the head of each department that met each morning in each floor to transfer the information obtained at the meetings Weekly, this was an important aspect for the growth of the company in the commercial part. Analyzing the PR Company of tuna concentrates its purchases in a limited number of big wholesalers and commercial companies, they counted on a good commercial management taking into account its distributors to the day.

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