Stimulating Awareness and Demand Through TV Commercial Investment in New and Refreshed Products

「As part of its corporate branding efforts to enhance product value, the Company stepped up public relations activities and secured coverage in multiple media outlets on themes such as toys and gender.」

「While raising prices sequentially to improve gross margins on existing products, the Company implemented the Value-Up Project, a promotional strategy designed to increase their added value.」

「• The Company established a public relations team and began disseminating information through the media and social media.」

「Through social media-focused promotion and direct communications with parents of young children, products including Racco Hug were increasingly selected by name as maternity-preparation items, and sales progressed steadily throughout the year.」

「For the Popochan series, which will mark its 25th anniversary, the Company plans to conduct patient awareness-building activities toward the Christmas selling season, including airing anniversary campaign TV commercials throughout the year.」

「In terms of earnings, the Company incurred expenses ahead of sales after actively using and investing in distribution-focused sales promotion and consumer-focused social media promotion accompanying the launch of new products. Research and development investment in new product concepts targeted for launch from the next fiscal year onward was also incurred ahead of schedule from the current fiscal year.」

「Even under the state of emergency, the Company launched new products as planned and continued to focus on using web and social media advertising to communicate their appeal effectively to consumers.」

「Online advertising also became more widely used as consumers selected products, and the Company reviewed its advertising methods, including by focusing on social media frequently viewed by mothers. As a result, the effect of product advertising on consumers appears to have translated into sales toward the second half of the fiscal year.」

「In terms of costs, the Company adopted a special strategy in response to the COVID-19 pandemic, switching the sales promotion expenses traditionally incurred for in-store displays and events to a variety of advertising and promotional activities. As a result, expenses were broadly in line with the same period of the previous year.」

「In terms of costs, sales promotion events and similar activities involving customer traffic were forced to be canceled as infection-control measures continued. As no particularly large expenses were incurred, selling, general and administrative expenses were below the level in the same period of the previous year.」

「In place of in-store sales promotion events and similar activities that could not be held, the Company actively used web advertising, including social media, with the aim of increasing its online customer base.」

「The Company launched O-mizu no Chiiku at ¥3,780 before tax. The TV commercials generated results, and the product became a strong seasonal staple heading into the next fiscal year.」

「The company stated that domestic and overseas sales remained below the previous year, while operating profit was ¥100 million because advertising spending was brought forward for new-product campaigns and other initiatives. In the non-consolidated results, the decline in sales was greater than in the previous year, and ordinary profit was ¥97 million, also remaining below the previous year at a rate of decline similar to that of operating profit.」

「The Company launched the new educational toy O-mizu no Chiiku, an unprecedented product making water the centerpiece of play, at ¥3,980 before tax, and it began to gain permanent placement at major mass retailers alongside the response to its TV commercials.」

「TV commercials aired toward the end of the year brought both retail and Company inventory to sellout, but sales volume remained limited.」

「In the construction-toy segment, the Company aired TV commercials for the Pythagoras series’ first combination set of plates and blocks, 1歳の知育ピタゴラス, priced at ¥3,980 before tax, as an introductory product. The commercials were effective and are driving the series as a whole.」

「In the first quarter, compared with the same period of the previous year, when advertising investment had been restrained, the Company increased its investment in TV commercials to build consumer awareness and stimulate demand for the aforementioned new and renewed products, as well as bicycles and tricycles. As a result, operating profit was ¥111 million, down 39.9% from the same period of the previous year.」