Snow Brand Case

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  • Topic: Milk, Dairy product, Japan
  • Pages : 26 (6564 words )
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  • Published : October 16, 2010
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Why was the Snow polluted?
—A blind spot for the Japanese top milk product company, Snow Brand—

Shizuko Ota and Akie Kikuchi Advisor: Dr. Brenda J. Wrigley, APR Department of Advertising, Department of Communication College of Communication Arts & Sciences Michigan State University

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Contents

I. II.

INTRODUCTION .................................................................................................3 HISTORY OF SNOW BRAND..............................................................................3

III. MILK IN THE JAPANESE MARKET..................................................................6 IV. V. SEQUENCE OF THE FOOD POISONING EVENT............................................7 PROBLEMS .........................................................................................................13

Business problem – Snow Brand as a gigantic top brand ................................... 13 Competition as a top brand............................................................................... 15 Inertia at the top ............................................................................................... 16

Communication problem....................................................................................... 16 Physical factors.................................................................................................. 16 Structural factors .............................................................................................. 18 Cultural factors ................................................................................................. 19 REFERENCES .............................................................................................................. 22 APPENDIX ................................................................................................................... 24

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I. Introduction
Tetsuro Ishikawa, the president of Snow Brand at that time, had to raise his voice. He shouted at the Osaka Plant manager at the press conference. “You, is that true?” On July 1, 2000, Snow Brand Milk Products Co. Ltd., the top company in the Japanese milk product industry, held its 4th press conference about the food poisoning it caused on June 27th. This was President Ishikawa’s first appearance in public and he apologized for the failure

along with accounting for the cause. He mentioned part of the production process was contaminated with the Staphylococcus aureus toxin but the reason for it was unclear. However, on the occasion, the Osaka Plant manager exposed the fact that contamination was due to the negligence of routine cleaning which had already been found on June 29th, two days after the poisoning happened. Neither the president nor the public relations manager who attended the press conference knew about the larger picture or the incident.

II.

History of Snow Brand
Snow Brand started in 1925 as a sales guild for dairy products in Hokkaido, the

northernmost part of Japan.

A big earthquake occurred two years before, in 1923, and it led to a

supply shortage, and a large amount of foreign-made dairy products flowed into Japan due to the abolishment of tariffs by the Government. The origin of Snow Brand was to help dairy farmers

in Hokkaido suffering from a fall in milk prices to become independent. Snow Brand’s crystal mark (logo), a logo familiar to the Japanese public was designed in 1926. The mark symbolizes

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stark white and purity, and the Pole Star in the center of the mark signifies Hokkaido.

Torizo

Korosawa, one of Snow Brand’s founders, advocated Kendo-Kenmin, which means dairy fertilizes earth and enriches people. This “spirit of establishment” has been the base of the corporate philosophy of Snow Brand. After several changes to its name and organization, Snow Brand Milk Products...
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