Jin 1108200079 UE3B

Kelly 1110100007 YE3A

Phoebe 1110100054 YE3A
Silvia 1108200104 UE3B
Bruno 1110100022 YE3A
Justin 1110100044 YE3A
Stella 1109100051 YE4A
Kobayashi “bunny” hand warmer 4P
l Product
The product was made by Kobayashi, a chemical company that was founded in
1919. With a cheerful rabbit on the package and the long duration of warming, this
has become the most trusted brand of hand warmers in Taiwan.
Its specialty is that it could withstand more than 20 hours, and it was sold in many
countries. There are three types of this product, one is the hand warmer; another is
the body warmer, which can be attached to your clothes; and the other is the insole
warmer, which you can put in your shoes.
Also, according to netizens, there are two types of hand warmers. The one with the
red-eyed rabbit is sold in every pharmacy shop. This type of product can stand for 24
hours a day, and its temperature is from 65 degrees to 53 degrees, while the one with
the black-eyed rabbit is only sold in Japan and Costco in every country, which has an
approximately 69 degrees to 53 degrees Celsius. The biggest difference between these
two products is that the black-eyed rabbit is slower to make it warm, and the red-eyed
rabbit version is faster, and it can stand for more hours.
The product is easy to use. You must shake it as soon as you take the product out of
the package. Just shake three times, and it would be warmer, and it could stand for 20
hours. You can also put it into the closet to dehumidify and put it in the cabinet to
deodorize.
The hand warmer is a must-have item for everyone during winter. Whenever you
go mountain climbing, traveling in some northern countries, going to the New Year
countdown party, riding a motorcycle, having self-care during your period, or
relieving, this product is the best.

l Price
We have to assess which markets its products are aimed at and set a price to match.
There are a number of pricing strategies that we use for our products including:
• Cost-plus: Adds 20% of profit above the cost of producing the product.
• Competitive: We observed our competitors' price and figured out that the price of
hand warmers is between 9 to 14 NTD per one. We determine our product’s price
to be 10 NTD per one. We didn’t determine our product at the lowest price,
although it might create an impressive volume of sales. We chose to make our
pricing reflect the appropriate positioning of our product in the market. Also, we
didn’t determine our product at the highest price. We observed our competitors
 Jin 1108200079 UE3B
Kelly 1110100007 YE3A
Phoebe 1110100054 YE3A
Silvia 1108200104 UE3B
Bruno 1110100022 YE3A
Justin 1110100044 YE3A
Stella 1109100051 YE4A
that set the price at 14. Their volume of sales is not quite well. In that case, 10
NTD per one, which is cheaper than 2⁄3 of the hand warmer, could be the best
price.
• Volume discounts and wholesale pricing: After we decide on our pricing strategy, we
also decide that we give discounts for large purchases. Since The main purchase
channels for our hand warmer are online sales and brick-and mortar store sales such
as 7-11, Family Mart and Hi-Life, etc. These convenience stores that we cooperate
with set the retail price at 9 and they require 10 % of profit.
• Seasonal allowances: Reductions given to entice customers to buy when our hand
warmer is placed during spring and summer that typically have low sales volumes.

l Place
The main purchase channels for our hand warmer are online sales and brick-and mortar
store sales. Due to the Covid-19 outbreak, online shopping has become mainstream. No
matter male or female, old or young use the Internet to buy what they want and need. At
present, Taiwan’s most well-known shopping platforms are nothing more than Shopee,
PChome and Momo shopping. Everyone can buy our hand warmer on these three online
platforms. Of course, not only these channels, but we also have a shopping website
dedicated to our own brand, you can go search and buy it. Regardless of which shopping
platform you purchase our brand of hand warmer, we provide remittance, credit card
payment and cash on delivery. If you buy it on our brand's website, it will arrive within
three days. The speed of delivery is very fast, which is beneficial to consumers. Next is
the brick-and mortar store, although we do not have a storefront dedicated to our brand,
we do cooperate with major convenience stores, for example, 7-11, Family Mart and Hi-
Life, etc. The reason why we did not choose the sales channel of supermarkets is that
convenience stores are more common than supermarkets and they are still open 24 hours
a day. Cooperating with convenience stores will make it a lot more convenient for our
consumers when they suddenly need to buy. Many brands of hand warmer will only be
sold online, and there is no brick-and mortar store, so our brand has a great advantage
here.

l Promotion

Hand warmer is a daily needs product, we do not have a particular target audience, but we do
have the target season to promote our sales. According to the characteristic of our product, the
 Jin 1108200079 UE3B
Kelly 1110100007 YE3A
Phoebe 1110100054 YE3A
Silvia 1108200104 UE3B
Bruno 1110100022 YE3A
Justin 1110100044 YE3A
Stella 1109100051 YE4A
best season to start our promotional campaign is the end of the Autumn. It will also meet the
period of the Halloween, as a result we will use the Halloween decoration to attract our
customer by launching family-size package or the bundle which allows them to come and
pick up whenever they need at the hypermarket, supermarket, and other physical stores. This
bundle (10 warmers) means they pay for ten warmers on the application of these convenient
stores, and they can pick up their products separately and at different branch by showing the
voucher in the application.

We choose to upload our funny video advertising on the YouTube, Facebook, Instagram, and
the graphics interchange format advertisement on search-engines. Because most of the
potential clients from age 12 to 60 will certainly use these online platforms many times each
day. The reason why they use these platforms is to relax, so a short funny video is just right
for this purpose and will leave a good impression on them.

A flexible sales team is extremely necessary for our sales, we need to always be prepared for
the hot winter in case the weather is not cold enough to prompt people to buy hand warmers.
We need to adjust our promotional strategy every single week because in Taiwan the winter
will not last for too long. The best marketing strategy for hand warmers is to separate the
promotional period in different stores. This tactic will make people more willing to buy when
they see a lower price while doing shopping.

We will use some cartoon characters or cute and creative models and shapes for packaging
the product, but for this kind of daily necessities, the practicality and the price are actually
more important. Therefore, we will focus more on the usability and other marketing strategies
that we mentioned above.