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Totsuko counted the TR-55 among its major product line, second only to the tape recorder, and the company invested heavily in terms of labor and money for its future. It was all very well to have the honor of producing Japan's first transistor radio, but unless this product sold they would all be out of luck. So to coincide with the launch of the TR-55, Totsuko established branches of Totsuko Shoji (the forerunner of Sony Shoji Corporation, which later became known as Sony Marketing (Japan), Inc.) in Tokyo and Osaka and set about popularizing transistorized products.
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Totsuko Shoji had been established in 1954, when Maruizumi, the company previously in charge of Totsuko's sales, had changed its name. Until then Maruizumi had been one of Totsuko's distributors for tape recorders, along with Nippon Gakki. With its strong nationwide network to sell musical instruments to schools, Nippon Gakki had initially been an invaluable distributor, outselling Maruizumi and completing all business transactions on the spot. However, Nippon Gakki also had its own products to sell and
could not be expected to give exclusive attention to Totsuko's tape recorders.
Maruizumi, on the other hand, was actively establishing a sales network based on electrical appliance stores. As it was their policy to deal directly with store owners whenever possible, rather than via large wholesalers, Maruizumi had started out small. Gradually, Maruizumi's sales advanced as they quietly developed these outlets, helped by the fact that tape recorders fell
within their specialty of selling electrical appliances, and also by the fact that they provided after sales service.
At this point Totsuko became fully committed to the new sales network, and Totsuko Shoji was created.
The Tokyo branch opened under the management of Masao Kurahashi, who had been attracted to Totsuko by his love of the tape recorder. The Osaka branch manager's job went to Taketoshi Kodama, an old Osaka hand with a feel for the local market. These branches did not have an easy task.Vacuum tube radios were at the height of their popularity all over the world, and i
t would be a tough assignment to bring transistor radios to the public's attention. In practice Totsuko salesmen had to explain the product features one by one: "This is what a transistor looks like. The radios made with this ' invention of the century ' are small enough to fit into the palm of your hand. They do not consume batteries...," and so on. It would have taken far too long for Totsuko alone to gain national recognition for the transistor. Ibuka and his colleagues were already trying everything they could think of.
The fastest way to make a breakthrough would be to sell transistors to other companies. If transistors were to appear simultaneously under the Matsushita Electric Corporation and Sanyo Electric Co., Ltd. trademarks, for example, the reputation of the Totsuko transistor would soon spread.
Technical staff from Matsushita, Sanyo, Hayakawa Electric Corporation, Toshiba Corporation, Victor Company of Japan., Ltd, and Standard Co., Ltd (presently known as Marantz Japan, Inc.) were invited to a demonstration of the company's transistors. Tokuji Hayakawa, president of Hayakawa Electric Corporation, was instrumental in arranging a gathering with the presidents of the other two major appliance makers of the Kansai region - Matsushita president Konosuke Matsushita and Sanyo president Toshio Iue - at the Nadaman Japanese Restaurant in Osaka. Totsuko was represented by president Ibuka, senior managing director Morita, and Osaka branch manager Kodama.
After the gathering, Iue put in an urgent phone call to his factory manager. "Stop work on the radio currently in production." Sanyo had been confidently preparing to launch a super radio in a plastic case that was revolutionary for its time. Iue ordered the factory manager to halt production and scale the Sanyo radio down to one-third of its present size.
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