What I Want You to Learn from This Lesson
MOS Burger’s new frozen-food brand, MOS Deli, is much more than the launch of another packaged food product. Until now, MOS Burger has sold most of its products through its restaurants. By entering the frozen-food sections of supermarkets and Japanese drugstores, the company can now reach consumers who do not regularly visit a MOS Burger location.
This is a growth strategy designed for a market in which opening more restaurants is becoming increasingly difficult because of Japan’s shrinking population, rising construction costs, labor shortages, and higher operating expenses. Instead of starting from zero, MOS Burger is applying the strengths it has already developed—brand recognition, food-development expertise, Japanese flavors, and decades of experience with rice burgers—to a new product category and new sales channels.
The important question is not only, “What should the company sell?” We must also ask, “Where should it be sold?”, “When will customers eat it?”, and “How can the new business support the company’s existing restaurant business?”
Success should not be measured only by publicity or first-time purchases. MOS Burger must also examine repeat purchases, gross margin, continued placement in retail stores, full-price sell-through, and whether MOS Deli encourages consumers to visit MOS Burger restaurants.
Through this case, we will study brand extension, category creation, differentiation, the 4Ps of marketing, customer touchpoints, and the connection between marketing strategy and operating profit.
We will then apply the same ideas to the fashion business.
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