Reference no: EM132550079
Hello Kitty is an idea based on a cartoon character of a small cat that looks kind and cute, with a button nose, two black dot-eyes, six whiskers and a ribbon or flower in its hair (PIS1). The cat has no mouth, and this represents major source of emotional association for buyers, as they can project many different feelings onto the little cat (P1S2). The owner and the cat can be happy, sad, and thoughtful or any of the feelings they want to feel together (P1S3).
Hello Kitty is 25 years old but has perpetual youth. For Japanese company Sanrio Co., a stationary producer, she has become a major brand success, multiplying profits in the financial year ended March 31, 1998 by thirteen times during a recession (P2S1). Adored by many demographic segments of the market, Hello Kitty has become an icon with global appeal (P2S2).
As the girls, who first bought her when they were young, grow older, they nostalgically buy Hello Kitty products as adults (P3S1). There are Hello Kitty tea sets, toasters, mobile telephone cases, erasers, motorcycles, mouse pads, spectacles, and other products. For bedtime, there are Hello Kitty pyjamas and bed sheets (P3S2). The company apparently adds 600 new products a month to the 15, 000 items or so already available (P3S3).Hello Kitty has taken Asia by storm and has over 40 stores in the U.S. with subsidiaries in Brazil and Germany (P3S4). Q3 market development
Sanrio runs Hello Kitty cafes in Japan and has started to franchise theme restaurants, the first of which is Maxim's Caterers Ltd in Hong Kong with more to follow (P4S1) Franchises in Seoul and Taipei are also on the horizon (P4S2). Apart from the brand extensions, Sanrio intends to introduce new cartoon characters including a hamster and a rabbit (P4S3). Financially, the brand has been phenomenally profitable, even during the recession (P4S4). Recently, the brand has become a target for co-branding but in some cases, such as the co-branding exercise with McDonald's in Singapore - hello Kitty eclipsed the brand partner, with thousands of people buying burgers and then throwing them away but keeping the Hello Kitty promotional items (P4S5)
What is opportunities and threats of Hello Kitty company?