nalysis supplement & Data summary

Besides the data summarized in the case, the appendix to this assignment below
contains a case supplement with two perceptual maps and a segmentation of the
conjoint preferences. To see how the analyses in the supplement were generated, you
have access to the raw perceptual and conjoint data from the surveys discussed in the
case. The supplement at the end of this handout together with the Market
Simulator described below are sufficient for completing this homework.

Survey 1: Consumer Perceptions (in Kirin perceptions.xlsx file)

The data consists of ten competing brands rated on 17 different attributes. The research
found that the perceptions are relatively homogeneous among import-beer drinkers, so
the ratings were averaged across several hundred respondents. The worksheets in the
file are:

• Perceptions data: ratings of all brands on all attributes. Each brand is compared
to the average rating, and both positive and negative outliers highlighted.
• Factor analysis of the situation: output of factor-analyzing the attributes that
pertain to the different situations and occasions for drinking beer. The resulting
perceptual map is included in this worksheet (and reported below, as well).
• Factor analysis of the taste: output of factor-analyzing the attributes that pertain
to taste. The resulting perceptual map is included in this worksheet (and reported
below, as well).

KIRIN PERCEPTIONS.XLSX FILE

Survey 2: Consumer Preferences revealed through Conjoint Analysis (in Kirin

conjoint preferences.xlsx file)
The data consists of the part-worths of 317 consumers. Please see the case Exhibit 4
for the attributes and levels in the conjoint study. The worksheets in the file are:

• Partworths: part-worths for all respondents and all attribute levels appear in
columns C:W. Columns Y:AK present these same part-worths where these part-
worths are standardized to the same base levels for segmentation (just as we did
for homework 2). Note: estimated preferences for higher prices were converted
to zero price-importance at this step. Finally, cluster membership appears in
column AM. (Note: these clusters were created using different software and may
differ somewhat from the clusters you would get from our software. Use the
clusters that I have created for you.)
• Demographics: each person also reported their beer consumption,
demographics, and psychographic information (such as “I like to take chances”).
Please see the case Exhibit 2 for the list of measures.
• Segmentation summary: a summary of the segmentation and profiling results.
The main table is also, reported below. As noted before, these clusters were
created using different software than I have had you use. Use the segments that
I have created for you.
• Market simulator: this simulator implements the competitive landscape from the
case (Exhibit 5), including the current Kirin product. The new Kirin product-
 concept (Ichiban Shibori) is also included. You can change the cells highlighted
in yellow. For numerical cells, feel free to just type another number. For text cells,
please COPY-and-paste (do not “cut”) from the handy table provided in C14:E16.

KIRIN CONJOINT PREFERENCES.XLSX FILE

My Analyses to Key Issues

Kirin's Segment

With the six segments, I would like to target “Elder social elites who are heavy full-
bodied beer drinkers” with our new Ichiban Shibori beer concept.

• Customer: clients are the base of the overall marketing strategy. In this case, the
target segment “Elder social elites who are heavy full-bodied beer drinkers”
would be most likely to like the Ichiban Shibori beer concept, because the
innovative production techniques including high-quality ingredients can meet their
needs. This segment likes full-bodied beer, which is exactly what Ichiban Shibori
offers. Moreover, Ichiban Shibori was designed for “Baby Boomers”, which is
highly matched with the segment’s age and social status. Compared to domestic
drinkers, imported beers has a larger proportion of consumers who have higher
degree and higher income, which are the attributes of the target segment. In
addition, this segment is the largest consumption of beers, indicating that
successful targeting may boost the profit at its maximum.
• Competitors: There are over 20 brands competing in the U.S. imported beer
market. The main competitors for Kirin are the top three beer brands are
Heineken, Molson and Corona. Heineken and Molson have large marketing
budget and advertising spending, which are threatening to Kirin since it would be
unable to compete with these two brands on marketing expenses. The best thing
Kirin could do is to differentiate itself with the other main competitors using its
core competitive advantage. The analysis for imported beer drinkers shows that
they have higher income and higher social status with full-time jobs, and a large
percentage of them are “Baby Boomers”. Ichiban Shibori’s intended target
segment also has these characteristics. Comparing with Corona, which mainly
targeted college students, Kirin has the advantage on the targeted age group.
 • Corporation: Kirin does not need to be the winner in every aspect to win the
overall competition. As a Japanese imported beer corporation, Kirin should
market its Ichiban Shibori concept to the specific target segment, such as the full-
bodied taste that the social elites desire. Also Kirin can win the competition even
if they have a small marketing budget. All they need to do is to find its core
competency to differentiate itself with the competitors, which is provide the right
product for the right consumers.

By successfully integrating these three factors, a sustainable competitive advantage

can be formed and maintained.

Kirin's Positioning Statement

For elder social elites who are heavy full-bodied beer drinkers, the Kirin Ichiban Shibori
beer delivers rich, full-bodied flavor because of the innovative production techniques
including increase of the temperatures, different yeast formulations, and high-quality
ingredients. The positioning statement can be used as a blueprint for a persuasive
promotion of the product by many means, such as creating ads accordingly and display
the ads on different social media platform, which are much cheaper than doing TV
commercials. Additionally, this statement could be included in the email newsletter, so it
could possibly catches the attention of its potential new customers and its old
customers.

Kirin's Sample Advertisement

The market shares for each of the nine product combinations are listed as below:
According to the table, the combination that maximize the Kirin market share is “Six
12Oz Large + Brown Painted”. Because my target segment has the largest weekly
consumption, the Six 12Oz Large package will best satisfy their needs. Additionally,
because of their preference of the rich, full-bodied taste, the brown bottle with a label
painted directly on the bottle will guarantee the rich flavor of the beer.

The original market share for Kirin Old is 4.1%. With the Kirin new product, the Kirin
Old’s market share shrinks to 2.9%. This indicates that these two products are
competing for the same segments of the consumers, but only part of the segments are
overlapped. However, the market share for the new product is 17.0%, and the overall
market share for Kirin is 19.9%, which is a 15.8% increase from the original market
share without the new product. The market shares of both Kirin New and Kirin Old
increases in this case, and the overall Kirin market share has exceeded Sapporo and
became the No.1 Japanese brand in the imported market.

When the confidence parameter c = 0.08, the market shares of the brands are:
Sapporo Kirin New Kirin Old
Market Share 6.0% 16.1% 6.0%

When the confidence parameter c = 0.5, the market shares of the brands are:
Sapporo Kirin New Kirin Old
Market Share 1.7% 16.7% 1.7%

Showing that the results are quite sensitive to the confidence parameter c.

If Sapporo cuts their prices by $1, the market shares of the brands will be:
Sapporo Kirin New Kirin Old
Market Share 5.2% 15.8% 1.2%

In this case, Kirin Old will not be able to beat Sapporo, but the overall Kirin brands
will beat Sapporo even if it cut prices and lower its margin.

The closest competitors of Kirin for taste are Becks, Dos Equis and Heineken. The
closest competitors of Kirin for usage situations are Dos Equis and Heineken. They are
considered the closest competitors of Kirin because they have the closest position to
Kirin. In conclusion, the two closest competitors of Kirin are Dos Equis and Heineken.
The perceived relative strengths and weaknesses are:

• Perceived relative strengths

• (for taste) rich full-bodied, good taste, gives buzz, prestigious-popular, refreshing
• (for usage situation) drink at bar, for home after work, masculine

• Perceived relative weaknesses

• (for taste) light, no aftertaste

• (for usage situation) for young people, lower price, drink at picnics & outings, to
serve guests at home, drink with friends

The perceptual maps are very informative in showing the attributes of Kirin. The rich full-
bodied attribute shows the target group’s preference; the usage situation indicates that
Kirin is loved by professional males to drink at bar or for home after work. It also shows
that Kirin will better fit the elder consumers, which makes me decide to target the sixth
segment in question b).