Kirin Case Study_5

Conjoint and Segmentation analysis

The KIRIN Case study

Sejong YOO (B00702551)

BLANLUET Ambroise (B00603115)

GABELLA Victor (B00698126)

HATIM Leila (B00604795)

2

•

Background

•

Key issues

•

Conjoint Analysis

•

Segment Analysis

•

Recommendation

Conjoint and Segmentation

Analysis for ICHIBAN SHIBORI

KIRIN BEER

#1 Beer firm in Japan

KIRIN

Asahi launched the new beer and achieved

favorable market acceptance

Kirin answered with a new product, Ichiban

Shibori, which was a huge success

KIRIN Brewery Limited was the largest beer

firm in Japan, and fourth largest in the world.

Background

Dominant market leader in Japan’s beer market

3

Although Kirin diversified into food, liquor, and

even biotechnology, its performance relied largely

on its market position in beer. In 1990 its market

share was almost 50% in Japan, nearly twice its

nearest competitor, Asahi. Sapporo was the third

largest brewer in Japan, followed by Suntory.

US import Market

It is dominated by European and Mexican beer

producers

Among Japanese producers, Kirin is only second

to Sapporo

On the US market, Kirin started with a

niche strategy and is trying to get new

consumers

Background

US import beer market is mostly made of young

upper-middle classes

4

Kirin first entered the US market in 1983 with a

niche stragtegy, targetting Japanese people. Later,

they signed contracts with beer distributors to get

sold in other places than Japanese restaurants.

Their major market is located in New York and Los

Angeles.

1

2

They think about bringing Ichiban Shibori to

_{the US market}

3

_{Would that be the right product to launch into that market, and wich consumers should be primarily targeted ?}

New product launch in the US

Market Share in US

Product attributes

Segmentation and

_Targeting

Kirin would need to sell an additionnal

300-400.000 cases to beat Sapporo

Key Issues

C

onjoint

Analysis

6

Product Attributes

Are our new product attributes suitable to the

consumers in the US

Discrepancy between actual vs predicted M/S

7

European

Heinken

Beck’s

_Guinness

Bass

Amstel

_Light

Molson

Corona

Sapporo

Old Kirin

Note

Awareness

100

50

30

25

65

60

20

20

Distribution

100

80

70

100

85

100

50

50

Standard

Awareness

27.0%

13.5%

8.1%

6.8%

17.6%

16.2%

5.4%

5.4%

Standard

Distribution

15.7%

12.6%

11.0%

15.7%

13.4%

15.7%

7.9%

7.9%

Weighted

Average

22.5%

13.1%

9.3%

10.4%

15.9%

16.0%

6.4%

6.4%

0.6 SA * 0.4 SD

First Choice

13.0%

12.0%

14.0%

14.0%

3.0%

39.0%

5.0%

N/A

Choic of

preference

16.0%

15.0%

14.0%

14.0%

11.0%

17.0%

13.0%

Logit

16.0%

14.0%

14.0%

14.0%

10.0%

22.0%

11.0%

Based on managerial judgments on competitors

•

Choice role is dependent on the context.

-

High Stake choice -> First Choice

-

High Variety of Seeking -> Choice of Preference

Discrepancy between actual vs predicted M/S

8

European

Why discrepancy?

•

All the other tangible and

intangible attributes that

are not reflected in the

product profile.

-

Brand Power

-

Distribution Networks

-

Advertising Budget

0%

10%

20%

30%

40%

Heinken

Beck’s

Bass Guinness Amstel Light

Molson

Corona

Sapporo

Kirin

11%

22%

10%

14%

14%

14%

16%

13%

17%

11%

14%

14%

15%

16%

5%

39%

3%

14%

14%

12%

13%

6%

6%

16%

16%

10%

9%

13%

23%

Conjoint Analysis : New product profile

9

•

European

•

Canadien

•

Japanese

Origin

•

Rich Full Body

•

Regular

•

Crisp and Clear

Body

•

Strong

•

Mild

•

Very Mild

Aftertaste

•

Full

•

Regular

•

Low

Calories

•

6.19

•

5.49

•

4.79

Price

•

Six 120z Large

•

Six 120z Small

•

Four 160z

Packaging

•

Green Label

•

Brown Label

•

Brown Painted

Glass

The relationship between each product

attribute and the market share

10

Methodology 1

Conjoint Analysis: Attribute Test 1

11

Attributes

Kirin New

(Baseline) 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Tests Origin Price Body Aftertaste Calories Packaging Glass

Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S Curren t M/SNew M/S

Origin Japanese European Canadian Japanese Japanese Japanese Japanese Japanese Japanese Japanese Japanese Japanese Japanese Japanese Japanese

Price 5.49 5.49 5.49 6.19 4.79 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49 5.49

Body Rich full _bodied Rich full _bodied Rich full _bodied Rich full _bodied Rich full _bodied Regular Crisp and clear Rich full _bodied Rich full _bodied Rich full _bodied Rich full _bodied Rich full _bodied Rich full _bodied Rich full _bodied Rich full _bodied

Aftertaste Very mild Very mild Very mild Very mild Very mild Very mild Very mild Strong Mild Very mild Very mild Very mild Very mild Very mild Very mild

Calories Regular Regular Regular Regular Regular Regular Regular Regular Regular Full Low Regular Regular Regular Regular

Packaging Six 12Oz _Small Six 12Oz _Small Six 12Oz _Small Six 12Oz _Small Six 12Oz _Small Six 12Oz _Small Six 12Oz _Small Six 12Oz _Small Six 12Oz _Small Six 12Oz _Small Six 12Oz _Small Six 12Oz _Large Four 16Oz Six 12Oz _Small Six 12Oz _Small

Glass Brown Label Brown Label Brown Label Brown Label Brown Label Brown Label Brown Label Brown Label Brown Label Brown Label Brown Label Brown Label Brown Label Green Label Brown Painted

Heinekin+ 13% 12% 13% 11% 13% 12% 13% 13% 13% 12% 13% 13% 13% 13% 13% 13% 13% 12% 13% 9% 13% 11% 13% 11% 13% 12% 13% 12% 13% 12% Becks 12% 11% 12% 11% 12% 11% 12% 10% 12% 10% 12% 12% 12% 12% 12% 10% 12% 11% 12% 12% 12% 10% 12% 9% 12% 9% 12% 11% 12% 10% Bass/ Guiness 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 14% 9% 14% 13% 14% 14% 14% 14% 14% 14% 14% 14% Amstel Light 14% 13% 14% 13% 14% 14% 14% 13% 14% 13% 14% 13% 14% 13% 14% 14% 14% 13% 14% 12% 14% 12% 14% 13% 14% 13% 14% 14% 14% 14% Molson 3% 3% 3% 3% 3% 1% 3% 3% 3% 3% 3% 3% 3% 3% 3% 2% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% Corona+ 39% 39% 39% 37% 39% 36% 39% 39% 39% 38% 39% 39% 39% 39% 39% 38% 39% 39% 39% 37% 39% 38% 39% 35% 39% 37% 39% 39% 39% 36% Sapporo 5% 3% 5% 4% 5% 4% 5% 4% 5% 3% 5% 2% 5% 4% 5% 3% 5% 3% 5% 4% 5% 4% 5% 2% 5% 2% 5% 3% 5% 2%

Conjoint Analysis: Attribute Test 1 Graph

12

Baseline: 3.94

Origin

Price

Body

Aftertaste

Calories

Packaging

Glass

European

Canadian

6.19

4.79

Regular

Crisp and Clear

Strong

Mild

Full

Low

Six 120z Large

Four 160z

Green Label

Brown Painted

Optimization of the attribute

13

Methodology 2

Conjoint Analysis: M/S Optimization

14

European

Attributes /

Optimal Product

Profiles

Optimal Product 1 Optimal Product 2 Optimal Product 3 Optimal Product 4 Optimal Product 5

Origin

European

European

European

European

European

Price

4.79

5.49

4.79

5.49

4.79

Body

Rich full bodied

Rich full bodied

Crisp and clear

Crisp and clear

Rich full bodied

Aftertaste

Mild

Mild

Mild

Mild

Mild

Calories

Low

Low

Low

Low

Low

Packaging

Six 12Oz Large

Six 12Oz Large

Six 12Oz Large

Six 12Oz Large

Six 12Oz Large

Glass

Brown Painted

Brown Painted

Brown Painted

Brown Painted

Brown Painted

M/S

17%

17%

17%

17%

17%

Conjoint Analysis: Optimization for new product

15

European

Attributes / New

Product Profiles

Kirin New 1

Kirin New 2

Kirin New 3

Origin

Japanese

Japanese

Japanese

Price

4.79

5.49

6.19

Body

Rich full bodied

Rich full bodied

Rich full bodied

Aftertaste

Mild

Mild

Mild

Calories

Low

Low

Low

Packaging

Six 12Oz Large

Six 12Oz Large

Six 12Oz Large

Glass

Brown Painted

Brown Painted

Brown Painted

16

•

Rich Full Body

•

Mild After taste

•

Low calories

Body, After taste, and Calories

•

Brown Painted

Glass

•

Sell at 6.19 per case

•

Premium and large

packaging

Price & Packaging

•

Initial product profile : 12 %

•

New product profile: 16%

Market Share

S

egmentation

Analysis

17

Target consumers

Who is our target consumers and going to

buy our product ?

Segmentation Analysis

18

Size / Cluster

Cluster 1

Cluster 2

Cluster 3

Number Of

Observations

115

103

99

Proportion

36.3%

32.5%

31.2%

31.20%

32.50%

36.30%

Cluster Size

Segmentation Analysis on the taste

19

Segmentation Variables

8.33

3.81

6.64

7.02

5.68

4.03

7.48

0.748

3.47

5.65

5.14

5.05

4.06

5.26

Rich full-bodied

Light beer

No aftertaste

Refreshing

Goes down easily

Gives a "buzz"

Segmentation Analysis on price and image

20

Segmentation Variables

3.33

3

7.44

3.85

3.18

4.24

5.84

4.63

2.56

2.32

5.04

3.31

3.01

4.05

4.55

4.13

Low price

Good value

From country with brewing tradition

Attractive bottle

Prestigious brand

High quality

For young people

Segmentation Analysis on consumption

21

Segmentation Variables

5.15

5.3

6.3

6.53

6.02

5.83

5.13

5.14

6.27

6.03

5.22

6.3

Drink with friends

Drink at home

To serve dinner guests

For dining out

Drink at bar

Drink at picnics

Segmentation Analysis

22

3.0

3.4

3.2

3.0

3.5

3.2

3.5

1.1

4.6

5.4

4.8

9.9

2.9

3.6

3.4

3.2

3.6

3.4

3.5

1.1

4.5

5.6

4.8

8.6

2.948

3.487

3.278

3.165

3.583

3.33

3.513

1.139

4.322

5.383

4.783

9.73

Cluster 1 Cluster 2 Cluster 3

Discriminant Variables

Weekly consumption

Age (1-7)

Income (1-7)

Education (1-6)

Sex (M=1)

Adapt to new situations

Make friends easily

Don't like to be tied to timetable

Like to take chances

Like to travel abroad

Like ethnic food

Knowledgeable about beer

23

1

Advertising Scope

Focused regional advertising

2

•

Due to budget constrains, launching the product in

one specific region with strategic promotions. If initial

outcomes in the test markets are positive, we expand

the campaign into major U.S. cities.

•

Our main target consumer is male, aged 40-50, mid

and high income and education and consumes beer

usually on weekend.

Recommendation on segmentation and targeting

3

2

Demographic information

Male, Aged 40-50, Mid and high income

and education,Weekly consumption

24

5

Medium of the advertising

POP advertising focusing on

distributors

•

Based on the demand of cluster 3, our product should

aim for a premium market because our target

consumer has knowledge and values good taste, rich

full-bodied taste, and refreshing, high quality beer.

•

Since cluster 2 and 3 have similar preference, we

might consider targeting two clusters. Our customer

values a high quality beer more than the price, and

has the highest knowledge of beers and values a

prestigious brand.

•

Since we don’t have enough advertising budget, we

need to invest on point of advertising focusing on

distributors such as bars, retail chains, and

restaurants.

Recommendation on segmentation and targeting

3

Narrowly Targeted advertising

Our product’s compatibility with

Cluster 3

4

Expanding target customers

Cluster 2 and 3 are quite similar

preference in beer.

25

Thank

you

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