NATIONAL ECONOMICS UNIVERSITY
- - NEU BUSINESS SCHOOL - -
Bachelor of Business Administration in English
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INDIVIDUAL WRITTEN ASSIGNMENTS
SUBJECT: CONSUMER BEHAVIOR
INSTRUCTOR: GAROLD LANTZ
NAME: TRAN LAN ANH
STUDENT ID: 11230019
CLASS: EBBA 15.2
Ha Noi, October
Article Summary: “Christmas Here Requires Reservations With The Colonel,” Wall Street Journal.
This article explores the unique Christmas traditions in Japan, which deviate significantly from those in
Western countries like the United States. While Christianity is not widely practised, Christmas is celebrated
with festive decorations, performances of Beethoven's Symphony No. 9, and the strong belief in Santa Claus
among children. However, the most prominent and distinctive Christmas traditions in Japan are the
consumption of fried chicken and Christmas cake.
Firstly, Kentucky Fried Chicken (KFC) has become synonymous with the holiday, with customers reserving
orders as early as October, with some waiting up to six hours on Christmas Eve to purchase their meals. A
basic KFC Christmas set costs around $35 and includes chicken, salad, and cake. The chain's December sales
are double their regular monthly sales. Moreover, this tradition began in the 1970s when a non-Japanese
customer suggested using fried chicken as a substitute for turkey, which was unavailable in Japan. As a result,
KFC capitalised on this idea, launching successful marketing campaigns that solidified fried chicken as a
Christmas staple. Today, reservations for KFC meals are highly recommended, with customers often waiting
in long lines on Christmas Eve, with KFC’s Christmas sales doubling their regular monthly figures.
Competitors like FamilyMart now offer cheaper chicken options to attract customers for the holiday season.
In addition to fried chicken, the Christmas cake typically features white frosting and strawberries, another
essential part of Japanese Christmas celebrations that has become a holiday fixture. The tradition of Christmas
cakes dates back to the early 20th century, with strawberry shortcakes gaining popularity in the mid-1960s. By
the 1970s, the demand for Christmas cakes was high, with bakeries and hotels accepting reservations months
in advance so these cakes became a symbol of celebration, outselling buttercream alternatives. Today, bakeries
and hotels prepare elaborate cakes, some costing hundreds of dollars (with prices ranging from $178 to $495),
while strawberry shortcake-flavoured snacks cater to those celebrating alone. To cater to those seeking more
affordable options, snack companies have introduced strawberry shortcake-flavored potato chips.
The article highlights how these traditions have emerged despite minimal Christian influence, with most
Japanese following Buddhism or Shinto. Other unique Christmas practices include performing Beethoven's
Ninth Symphony, setting up Christmas trees, and widespread belief in Santa Claus among children.
In conclusion, this article highlights how Japan has adapted Christmas traditions into a unique cultural
celebration centred on fried chicken and Christmas cakes. It reflects the power of marketing in shaping
consumer behavior and the ability of traditions to evolve in ways that align with cultural preferences and
practicalities. The following are the three most important takeaways from the article.
Firstly, the most important takeaway is that KFC successfully created a Christmas tradition in Japan by
marketing fried chicken as a turkey substitute. This is significant because it showcases how businesses can
shape cultural practices through strategic marketing and timing.
The second key takeaway is the popularity of Christmas cakes, particularly strawberry shortcakes, which
symbolize festive cheer in Japan. This is important because it demonstrates how Japanese culture incorporated
Western ideas and transformed them into something uniquely their own.
The third important point is the strong commercialization of Christmas in Japan, with businesses offering
high-end products and creative alternatives like shortcake-flavored potato chips. This is significant as it
underscores how consumerism and innovation drive modern traditions, even in non-Christian countries.
Article summary: “P&G Lightens the Load on Diapers,” Wall Street Journal.
Procter & Gamble Co. (P&G) is implementing a strategy to subtly increase the prices of its Pampers and Luvs
diapers by reducing the number of diapers in each box a practice known as "downsizing." Although the retail
price remains steady, the cost per diaper rises. For instance, Pampers Cruisers size-five diapers will now have
132 diapers per box instead of 140, with the box price on Amazon still listed at $45.99. This adjustment
increases the cost per diaper by 6%, from 33 cents to 35 cents.
The company justifies this price hike by citing product improvements, such as better absorbency and
expanded sizing options in the Pampers Swaddlers line. These enhancements, according to P&G, are based on
significant research and development investments and feedback from over 9,000 parents. The new packaging
design aims to boost shelf visibility.
This strategy comes as P&G's new CEO, A.G. Lafley, seeks to increase sales and profitability in critical
markets. Similar tactics are used across the industry, such as Kimberly Clark's reduction in the number of
tissues per box for Kleenex products, paired with claims of increased sheet thickness. These moves align with
broader market trends, where manufacturers and retailers, such as WalMart, favour smaller package sizes to
maintain affordability amid economic uncertainty. P&G’s last significant diaper price increase was in 2011,
spurred by rising production costs.
In conclusion, the essay emphasizes the careful balancing act between boosting profitability and preserving
consumer trust, as demonstrated by P&G's calculated use of downsizing to quietly raise prices. This strategy
enables P&G to respond to growing production costs and the need for new product innovation while still
meeting consumer needs. P&G shows its dedication to satisfying consumer demands even as it raises prices
by emphasizing enhancements like increased size and improved absorbency. These tactics are also greatly
influenced by the larger economic environment, which includes price sensitivity among consumers and
merchant expectations for affordability.
The most important takeaway: P&G is using downsizing reducing the number of diapers per package while
maintaining the same retail price to increase the price per unit. This is important because it allows the
company to increase profits without drawing immediate attention to a price hike, a tactic that minimizes
potential backlash from cost-sensitive consumers. (Lesson: Instead of raising the selling price directly,
businesses can subtly boost profits by making little adjustments, such as lowering the quantity of things in a
package. Price-sensitive customers are less likely to react negatively as a result.)
The second most important takeaway: P&G justifies the price increase by emphasizing product
improvements, such as enhanced absorbency and better sizing options, which were informed by extensive
research and consumer feedback. This is significant because it shows how companies leverage innovation and
consumer insights to justify higher prices, positioning the changes as added value rather than cost-saving
measures. (Lesson: In addition to raising the product's true value, investing in innovation and product
improvement builds consumer confidence. A key component of differentiating a business and rationally
defending additional expenses is paying attention to and meeting customer wants.)
The third most important takeaway: Downsizing aligns with broader economic and retail trends, where
smaller package sizes are increasingly used to appeal to budget-conscious consumers, especially during
periods of economic uncertainty. This is crucial because it highlights how macroeconomic conditions
influence corporate strategies, ensuring products remain accessible while boosting unit profitability. (Lesson:
Companies must adapt to consumer behavior and economic developments, such as the necessity for
reasonably priced goods during hard times. Without using direct price competition, this flexibility enables
businesses to hold onto market share and appeal to customers.)
