Morinaga & Company SWOT & PESTLE Analysis
ID : 52805553| Nov 2020| 14 pages
COMPANY PROFILE -Morinaga & Company
Business Sector :Food Processing
Operating Geography :Japan, Asia, Global
About Morinaga & Company :
Morinaga & Company is a confectionery company in Tokyo, Japan, in operation since 1899. It was founded by Taichiro Morinaga and is headquartered in Minato, Tokyo, Japan. Morinaga’s main business activities are the manufacture, purchase and sale of confectionaries (caramel, biscuits, chocolate’ etc.), foods (cocoa, cake mix, etc.), frozen desserts (ice cream, etc.), and health products (jelly drinks, etc.). As of 2020, Morinaga & Company has 1334 employees. It delivers products that increase the values of “deliciousness” and “health functionality” for people of all generations. In 2020, the company has launched its Hi-Chew candy in Australia. The product is famed for its long-lasting chewy texture and its wide variety of food flavors. The brand has a strong following especially in US and New Zealand and the company hopes to expand the brand by tapping on its international success. Morinaga Milk, its affiliated company, received the 2019 Bronze Award in the “Diary and Health Products”.Morinaga’s mission is “We aim to contribute to the realization of abundant, safe eating choices and the promotion of health among the people of the world. To this end, we provide products, services, and information offering value and inspiration through business based on our pioneering spirit.” Its vision statement reads, “Delicious, Fun, and Unique.” The Company’s unique selling proposition is customer trust as the most precious value for them”
Morinaga & Company Revenue :
205.3 billion yen - FY ending 31st March 2019
205.0 billion yen - FY ending 31st march 2018
Competitive Analysis of Morinaga & Company
SWOT
PESTLE
The SWOT analysis for Morinaga & Company is presented below in a table followed by the detailed analysis report.
| Strengths | Weaknesses |
| 1. Strong focus on milk related research and development 2. Aggressive advertising to increase brand recognition 3. Frozen desserts segment net sales growing more than over all ice cream market | 1. Lower year on year sales in Taiwan |
| Opportunities | Threats |
| 1. Strategic development of sales displays 2. Expansion into health and wellness domain 3. Make HI-CHEW a global brand 4. Growth in overseas businesses through partnerships | 1. Increase in price of raw materials. 2. Increasing labor shortage in Japan 3. Challenges in raw milk production in Japan 4. Novel coronavirus outbreak impacting consumption |
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Detailed SWOT Analysis of Morinaga & Company
Strength
1. Aggressive advertising to increase brand recognition: Morinaga & Company has always attached great importance to advertisements which is evident from its aggressive advertising strategy. To increase profits, it has now narrowed its focus to core brand which will increase the efficiency even more. The profit of frozen desserts segment and health products segment is mainly attributed to aggressive advertising adopted by the company. It properly utilizes the media mix with various online ads to allure the customers. For the steady development of next-generation brands, it totally relies on online promotions. There are multiple TV and newspaper ads for expanding ratio of stores stocking vanilla Monaka jumbo. In the wellness domain, in order to respond to competition, Morinaga has adopted function-based advertising. It has ads specifically designed for exam season, for keeping in shape, for preventing heatstroke for beauty, for sports, for society etc. The newspaper advertisement marking Morinaga’s 120th anniversary was selected as an “Ad that leaves an impression” by Japan newspaper Publishers & Editors Association in August 2019. Such effective advertisements dedicated for each function not only serves the purpose of attracting a wider audience but also helps in building a strong brand recall.
3. Strong focus on milk related research and development: Morinaga is a pioneer of western confectioneries in Japan and invests heavily in its research and development. Its research helps in evolving technology to lead the product development. Its high-end technology in different sectors like soft candy, biscuit/snack, chocolate flavor-making, baked chocolate, Choco Monaka jumbo, in jelly technology etc. has helped it to lead in the confectionery industry. Morinaga also conducts research on various ingredients to contribute to people’s health functions. It is also involved in joint research with universities and specialist institutions. It presents its research results at conferences and in scientific journals. Morinaga is also undertaking independent developments in health functional ingredients. It also announced a new research center to be opened in 2021 at the Morinaga Tsunami Factory site. The research center present at factory site conducts fundamental research on confectionery, foodstuffs, ice cream product development, food processing technology, mass production technology and quality assurance.
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Weakness
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Opportunity
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Threats
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Major Competitors :
- Purdys Chocolatier
- Storck LLC
- Mondelez International
- Hershey’s
- Nestle
- General Mills
- Cloetta AB
- Haigh’s Chocolates
Major Brands :
- CHOCO BALL
- HI-CHEW
- DARS
- Salted Caramel
- Ottotto
- MILK COCOA
- IN JELLY
- AMAZAKE
- SOUVENIR
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SWOT & PESTLE (combined)
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Morinaga & Company SWOT & PESTLE Analysis Report
1. Research and Development –
https://www.morinaga.co.jp/company/english/rd/
2. Notice Regarding Construction of New Research Center
Scheduled to open on Morinaga Tsurumi Factory site in October 2021 –
https://www.morinaga.co.jp/company/english/newsrelease/detail.php?no=1837
3. Morinaga to distribute HI-CHEW candy in Australia following success in New Zealand and US –
https://www.foodnavigator-asia.com/Article/2020/02/11/Morinaga-to-distribute-HI-CHEW-candy-in-Australia-following-success-in-New-Zealand-and-US
4. History repeats as consumption tax hike pushes Japan toward recession –
https://www.japantimes.co.jp/news/2020/02/25/business/economy-business/sales-tax-recession/
5. Reducing environmental load at the time of storage/transportation –
https://www.morinaga.co.jp/company/english/csr/environment/development.html
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Morinaga & Company SWOT & PESTLE analysis has been conducted by Sushree Lasyamayee and reviewed by senior analysts from Barakaat Consulting.
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Morinaga & Company SWOT & PESTLE Analysis
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