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Toto

Avatar for Blake Doman Blake Doman
August 16, 2026
1

 Toto

Case study regarding how to introduce a new product into an environment with differing cultural behavior.

Avatar for Blake Doman

Blake Doman

August 16, 2026

Transcript

  1. The Problem TOTO is asking for behavior change without enabling

    trial No trial. No behavior change. No adoption
  2. Environmental Impact B2B Efficiency: Replaces 36.5 billion rolls of U.S.

    annual toilet paper waste Lowers janitorial overhead and prevents plumbing maintenance caused by paper clogs RELATIVE ADVANTAGE Resource Savings: Eliminates the massive water volume required for toilet paper manufacturing Smart Energy: Integrated "Energy Saver" modes minimize electricity costs, ensuring the luxury of a heated seat remains eco-efficient
  3. Awareness COMPATIBILITY ≠ Adoption CULTURAL RESISTANCE “Yuck Factor” Talking openly

    about bathroom habits make Americans uncomfortable Prolonged drying cycle seems inconvenient compared to toilet paper Feels unfamiliar INFRASTRUCTURE FRICTION High barrier to entry: $800-$5,000 products Additional $300+ electrical outlet installation cost Hidden tax off putting to US consumers
  4. Complexity NEW BEHAVIOR Water cleaning vs wiping Control panel, settings,

    dryer INSTALLATION Installation complexity (cost and coordination)
  5. The Solution Trial Built into hotels, offices, and new homes

    Reduce Friction Premium Positioning Eliminate Installation and behavioral barriers Reframe as a lifestyle upgrade
  6. Strategic Shift Current Luxury hygiene product B2C awareness High-end niche

    Proposed Eco-friendly smart upgrade B2B-driven adoption Scalable entry point Maintain luxury image
  7. Target Market Primary (B2B) Tract home developers & builders Hotels

    & offices (new builds) Architects (key decision makers) Secondary (B2C) Eco-conscious homeowners (25-45) Smart home adopters Showrooms
  8. Customer Persona: Ruby Profile Age: 31 Occupation: Marketing Coordinator in

    corporate office Income: $80,000/year Living Situation: Been exploring into Tract Housing Lifestyle: Social, values comfort and luxury, sustainability Pain Points Familiarity breeds preference Thinks traditional bathrooms feel outdated Wants new home to feel elevated and modern Hesitant to buy something unfamiliar without trying it first Interested in eco friendly options but only if they are easy and don’t sacrafice comfort Triability Journey Where she experiences product: Office bathrooms-daily exposure Hotels while traveling Model homes during buying process 1. First Use- “This is different” 2. 2-3 Uses: Notices comfort and cleanliness 3. 4-5 Uses: Preference forms 4. Purchase trigger-> Sees it as an option in her new home
  9. Phased Adoption Phase Two Developer Led Expansion Phase One Controlled

    Trial Phase Four Normalization Phase Three Consumer Pull
  10. Years 0-2 Goal: Overcome Trialabilty Barrier Tactics: Discount Installs Install

    in high-use environments Result: Consumer experiencses Neorest repeatedly and begin to form habits Phase One Controlled Trial Key Metric: # of people exposed to Neorest Demand Focus: New construction of hotels and office spaces
  11. Phase Two Developer Led Expansion Goal: Scale through B2B adoption

    Focus: Residential developments Target architects and interior designers Tactics: Bulk Pricing for developers Showcase Successful Pilot Project Bathroom Bundling Result: Washlet becomes a premium feature Developers include TOTO by default Key Metric: % of new builds with Neorest Demand Years 2 - 5
  12. Years 5 - 10 Goal: Shift from push to pull

    strategy Focus: Tactics: Highlight: comfort, sustainability, and luxury Increase showroom + retail presence Result: Consumers actively request TOTO Architects/developers respond to demand Phase Three Consumer Pull Key Metric: # of consumer-driven installations Demand Consumers who experienced TOTO now demand them Expansion into cusotm builds
  13. Phase Four Normalization Goal: Make TOTO a social norm Focus:

    Broad adoption across New builds and Renovations Continued presence in public spaces Tactics: Maintain premium positioning Leverage widespread familiarity Result: TOTO becomes expected in modern bathrooms Similar to Japan-level adoption Key Metric: Household penetration rate Demand Years 10+
  14. Channel 1 Contractor Advocacy TOTO Contractors can heavily influence purchase

    decisions; contractors are perceived as a trusted source of recommendation and are present during installation of the product. This could be implemented through installar incentive programs, certifications and training, as well as product demo guides. If the contractor recommends it, the homeowner buys it. Contractors Homeowners
  15. Channel 1 Incentives TOTO Hotels Reduced water usage Better reviews

    = higher rates Luxury rooms Apartments Differentiation in a crowded market High-end amenity that sets a unit apart from standard apartments Reduced maintenance costs TOTO known for reliability Less toilet paper = less pipe clogs Contractors Homeowners
  16. Channel 2 Experience & Hospitality Retail/Showroom Experience Provide demo units

    for consumers to test before purchase Premium bathroom displays Hospitality Seeding Units in luxury hotels, apartments, and Airbnb/VRBO homes First-time, risk-free exposure Consumers will likely use multiple times before adoption Drives post-experience demand
  17. Channel 3 High-Intent Demand & WOM Problem-Solution Marketing Focus heavily

    on sustainability, convenience and accessibility Important to mention the aspect of luxury Marketing Channels Google search YouTube tutorials/demos Referral Engine Private word-of-mouth Influence from friends/family Drive adoption through trust and experience
  18. Table of Contents Main Powerpoint: Title The Problem Relative Advantage

    Compatibility Complexity The Solution Strategic Shift Target Market Customer Persona Phased Adoption Phase 1 Phase 2 Phase 3 Phase 4 Channel 1 Channel 2 Channel 3 Appendix: When to focus on NeoRest vs Washlet Why developers choose TOTO Developer Pricing and Subsidies Bundling Metric goals Phase 1 Phase 2 Phase 3 Phase 4 Contractor Advocacy Pamphlet Demographic Support for Target Market Neorest Cost Breakdown Phase One Discount Justification High Intent Digital Channels Sources
  19. Neorest List Price: $5000 Luxury feel Brand identity New Construction

    Washlet List Price: $800 Remodels Price sensisitve consumers Easier install with infrastructure Average standard toilet cost: $375 to $800
  20. Why Developers Choose TOTO Make Money Neorest is a high-end,

    luxury feature Bathrooms are a key selling space in real estate Developers can: Justify higher listing prices Position units as “premium” or “luxury” Sell Faster It creates a “wow factor” during walkthroughs Signals overall quality of the build Aligns with smart home trends Talking point in tours Memorable feature Reduce Risk TOTO provides ongoing service for products Developers benefit because: They’re not fully responsible if something goes wrong There’s a clear support system in place Developers who adopt early: Stay ahead of the curve Build reputation for innovation
  21. Developer Pricing and Subsidies Pilot Project Subsidies Offer discounts for

    first buildings 30% off units for a developer’s first project Cap it (first 50–100 units) Why it works: Lowers trial risk for developers Creates pilot case studies Volume-Based Pricing Offer tiered discounts based on quantity 0–50 units standard pricing 50–150 units 15–25% off 150+ units 30%+ off → → → Why it works: Encourages larger rollouts Increased locations = increased trialability Installation Costs Offer: Cover the biggest friction point Pay for: Electrical setup (~$300) Installation labor Why it works: Removes a prominent adoption barrier Makes decision feel “low effort”
  22. Bundling Bundling works because: Developers want fewer decisions, not more

    Bathrooms are designed as a system, not individual pieces It helps justify including a premium product like Neorest Strategic Advantage: Increases total contract value per project Locks in TOTO across the entire bathroom Makes Washlet/Neorest feel like a natural inclusion, not an add-on Strengthens TOTO as a complete bathroom solution provider Developer Advantage: One decision instead of many Maintain design consistency across the building Creates clear upsell path within the same project Don’t sell the toilet. Sell a seamless, luxury bathroom experience.
  23. Metric Goals Phase 1 Metric: # of people exposed to

    TOTO 50,000+ new units installed annually 10–20 flagship developer projects 1M+ annual consumer exposures Why? Phase 2 Metric: % of new builds with Neorest 15–25% of targeted new builds include Neorest 50%+ of developers repeat usage Why? Phase 3 Phase 4 Metric: # of consumer-driven installations Metric: Household penetration rate 25–40% of remodel customers consider Washlet Majority of sales become consumerdriven Strong brand association with “premium bathroom” 30–50%+ household penetration Category leader in U.S. bidet market Washlet becomes standard in new construction Why? Why?
  24. Phase 1 Metrics 50,000 installs/year: Moves beyond small pilots to

    creates real market presence Equals ~150–300 buildings 1M exposures: Washlet requires repeated use to adopt This scale ensures enough people try the Neorest multiple times and form habits 10–20 developers: Prove concept Create case studies But still manageable financially You’re not trying to make money, you’re trying to create habit at scale
  25. Phase 2 Metrics 15–25% adoption Product becomes “normal” Risk perception

    drops 50% repeat developers Shows majority see value Indicates: ROI works Risk is reduced You’re proving the model works and scaling B2B adoption
  26. Phase 3 Metrics 25–40% consideration Remodels = optional decisions Harder

    than new builds If ~1 in 3 consumers consider it: Behavior has shifted Product is now desirable Consumer-driven sales Signals shift from: Push (developers/TOTO) to Pull (consumer demand) Demand is now coming from the market, not being forced
  27. Phase 4 Metrics 30–50% penetration Japan reached ~60%+ U.S. has

    more barriers This is a realistic long-term ceiling Market leadership Confirms TOTO wins the category it helped build Washlet becomes standard, not differentiated
  28. Estimated Cost Breakdown of Neorest Category Raw Materials & Electronics

    Estimated Cost % of Retail $1,200 24% Direct Labor & Factory Overhead $500 10% Shipping & Duties (Landed Cost) $300 6% Marketing & Distribution $1,000 20% Profit Margin $2,000 40% Total Retail Price $5,000 100%
  29. Phase One Discounts Justification When you propose a 30%–50% discount

    for "Stage One" (B2B pilots), you are asking TOTO to sell the product at or near its "Landed Cost." Even if TOTO makes $0 profit on the first 50 units in a hotel, the "Marketing Value" of those 50 units (providing thousands of guest trials) is worth far more than the $50,000 in lost margin. It is a "Customer Acquisition" expense, not a loss.
  30. High-Intent Digital Channels (Capturing Demand) Google Search (SEM/SEO): This targets

    specific "problem-solving" queries. Instead of general branding, TOTO should bid on keywords like "how to reduce toilet paper waste," "hygienic bathroom upgrades," or "best bidet for pregnancy/mobility." YouTube Tutorials & Demos: Because the product has high Complexity, video is essential. Short, high-quality demos of the "Auto Open/Close" or "Ewater+" features help demystify the tech. These videos should focus on the solution (e.g., "The hands-free way to a cleaner bathroom").