Consumer Products Operations Profile of Kobayashi Pharmaceutical Japan

In "manufacturing and sales operations", the aim is planning, research, development, production and sales of products developed at our company. Customers are offered unique and creative products which embody the slogan of the Kobayashi Pharmaceutical group, "giving form to 'something worth having'".

The speed of our manufacturing and sales operation, which generates on average one new product every 13 months, enjoys a good reputation both within and outside the business world. The speed of our development system is supported by "concurrent development", independent simultaneous implementation of "research and development", "quality assurance", "prototypes and pilot production", and "sales planning". Superior marketing capacity is also necessary, as the new products created in this way are often completely novel with respect to the marketplace. "Thorough pursuit of user-friendliness" is always our top priority. We don't go for extravagant images or elegance. Rather, our goal is that simply by looking and listening, the customer will easily grasp what the product is and what it is used for.

Product Planning, Research & Development
The forte of our manufacturing and sales operation system is the realization of ideas as products.

These ideas are gathered through new product idea sessions and our employee suggestion system, which was started in 1982, and are brushed up through a number of stages. Investigations (hereafter referred to as concept investigations) involving whether or not the product is creating the niche market we are looking for, are conducted prior to production. An in-house philosophy and system has been established for development of ideas when it is determined that a market exists. This development is carried out even when a clear embodiment of the idea is nowhere in sight, and even if realization turns out to be impossible, the experience and technology gleaned from the exercise are applied to the next stage of business.

In product manufacture, we bring together the finest materials, resources and ideas from in-house and outside the company, excelling at the creation of products reflecting a sense of independence and creativity. An example is the "Netsusama sheet" (antipyretic sheet). An idea was proposed via the in-house suggestion system for a "stick-on cooling sheet". Through concept investigation it was determined that marketability was high, based on statements such as "When I have a fever, I'd like a wet towel that I can stick on my forehead without it slipping or falling off" and "Ice bags that are chilled in the fridge are hard. And they take awhile to freeze. I'd like a cooling agent that is flexible and can be used quickly." Based on investigation of between 40 and 50 formulas, taking into account viscosity, durability and usability, the idea was combined with a "continuously cooling gel" proposed by someone from outside the company. Development then began on a "sheet with a cooling gel embedded on non-woven fabric". Experiments and prototypes were developed repeatedly and various problems were encountered: "In creating a gel that sticks to human skin, when the moisture content is low, the adhesive force for sticking to the forehead drops. When the moisture content is high, it stays cool but tends to drip." and "People feel cool when skin temperature drops by 2 degrees. Because of this we should consistently lower skin temperature by 3 degrees while controlling the moisture content." Ultimately, the "Netsusama sheet" was created, a gel sheet with high viscosity, continuous cooling properties and usability.

*	"Creation of a niche market" aims at the manufacturing and sales operation concept of "creating a market which has not yet been entered by other companies, and ultimately taking responsibility for the formation of a large market."

Production & Manufacturing
Production and manufacturing assures providing consistently high-quality and inexpensive products for the marketplace.

Products at Kobayashi Pharmaceutical Co., Ltd. reflect the use of techniques with a strong sense of independence. For this reason, we often create new types of products, with superior performance an extremely important part of product design. We aim for packaging designed for ease of use, taking the perspective of our customers, for whom sensitivity to new materials and functions is always extremely high. There is also an emphasis on maintaining consistently high-quality, preparing a production system in line with demand, and strengthening raw materials inspections and the quality inspection system at production sites. Further, in production activities, we aim at lessening the burden on the environment.

*	Through the creation of environmentally-friendly products, we deepen our relationship with the customer while contributing to society.

Sales & Marketing
Sales and marketing capacity is one of the strengths of Kobayashi Pharmaceutical Co., Ltd. In order to introduce to society products not found on the market and of which consumers are not even aware, independent strategies of appeal are adopted. We thoroughly pursue "ease of comprehension", which extends to the naming of goods, their advertising and sales promotion in stores.

Netsusama sheet, Toiresonoatoni

This is a "pulling strategy" in which suggestions are implemented including the context of product use, thus drawing forth consumer need and product market. For example, with the "Netsusama sheet" ('Cooling Gel sheet'), and "Toiresonoatoni" ('After using the toilet'), care is taken so that the method of use and the results can be easily understood by the consumer just from the name of the product. Naturally, this thinking is also carried out consistently through television commercials* and other advertising presentations. We make sure that presentations convey the product concept and method of use correctly and simply, and that the product names make a lasting impression on consumers.

History of manufacturing and sales operations

1894	Manufacturing and sales of 10 types of pharmaceuticals by our company, including Taiko-maru, Ichinichi-maru and "Tamushichinki" (ringworm tincture). Inroads made into the private patient pharmaceutical sales section.
1939	Manufacturing and sales begin of the headache medicine "Hakkiri" (Clear head) Traveling sales within Japan and Korea expanded.
1940	Start of operation at 13 plants. Manufacture of company products continues, centered on "Tamushichinki" and "Hakkiri", solidifying the basis for the current manufacturing development business division.
1952	Manufacturing and sales begin for our company's first pharmaceutical following the war, the stomach medicine "Marin".
1961	Manufacturing and sales begin for the "Tsuryoku-kobayashi-tamushichinki", a medicinal treatment for athlete's foot.
1967	Sales start for "Hakkirisukai S", an anti-drowsiness medicine.
1969	Sales start for "Bururetto", a flush toilet deodorizer.
1975	Sales start for "Sawade", a toilet deodorizer.
1981	Comprehensive Japanese sales base formed for "Odor eaters", an insole with activated charcoal.
1986	Sales start for "Bururetto-okudake"
1986	Sales start for "Tough grip", a denture firming agent.
1987	Sales start for "Lysol", an antiseptic spray, through coordination with the American firm Stirling Winthrop.
1987	Sales start for "Itoyouji" dental floss.
1988	Sales start for "Toirenoatoni" a toilet deodorizer, and "Sarasati" a pantiliner.
1990	Sales start for "Ase-wakipatto"
1990	Sales start for the indomethacin tablet "Anmerushin-yokoyoko"
1991	Sales start for "Nodonu-ru spray"
1991	Sales start for the headache medicine "Hakkiri ace"
1992	Sales start for the sterilizing agent "Kizu dry power spray"
1994	Sales start for the cooling gel sheet "Netsusama sheet"
1995	Sales start for the deodorants "Muko-kukan" and "Shoshugen"
1995	Sales start for "Eyebon", an eye lotion for contact lens wearers.
1996	Sales start for "Tough Dent", a cleaner and deodorizer for dentures, and "Kizu-awawa", an antiseptic for wounds.
1997	Sales start for the indomethacin poultice "Anmerushin-happu"
2001	Purchase of Whitehall Japan Corporation.
2001	Purchase of Kiribai Chemical, a company involved in manufacturing and sales of Kairo hand warmers and other products.
2002	Conveyance of health food business (Tochu-cha) from Hitachi Zosen Corporation .
2003	Name of our subsidiary Angel Ltd. changed to Ehime Kobayashi Pharmaceutical Co., Ltd.

Schematic diagram of manufacturing and sales operations