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Kirin Brewery Co.: In Search of A Growth Strategy
To discuss how kirin through market segmentation and expansion as to counter the
depression of the beer market
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Class interaction
Product & Service
Current Trend
Domestic Activities
International Activities
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Kirin Slogan
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Strong
Brand
Image
Alcohol beverages : 51%
Soft drinks and foods : 31%
Pharmaceuticals : 8%
Other business : 10%
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Source: The Yomiuri Shimbun, 2011
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Knowing the trend of market and industry is not
enough, we also need to know :
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In Population and its markets segmentation
Declining Birth rate and aging populations
Increasing health-conscious and government effort
Highly publicized and criticized on drunk driving
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In 2008 The japanese government implemented a new
mandatory medical check up for everyone over age of 40
1/6
/2015
16 Major campaign against drunk driving (2006)
Accidents and deaths involving drunks drivers were given wide coverage in both the print and on television after the accident
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The increasing health concerns among elderly people and the decreasing consumption
of beer since the implementation of government mandatory medical check-up as well
as the penalty
Which Means
The beer market is facing a depression in this segment
Domestic Market
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Kirin Green Label (With 70% less
carbohydrates than normal beer)
Introduce Kirin Zero (with no sugar
and low calories)
introduce new
products
emphasize on
good health
From domestic
point of view
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Younger People
Concentrates in urban areas
Less rely on cars as a form of transportation
Female
In 2004, only 59% females had a driving license (males-86%)
Change target market
emphasize on younger people and female
From domestic point of view
Both of market segments (young adult and female)--- less affected by drunk driving concerns
ALSO
This segments are relatively untapped
SO
Domestic Market
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Domestic Market
Domestic Market
younger market (new
products)
Distinctive packaging
Westernized brand names
Younger Image
Female Market
Emphasize the health benefits of
drinking
Improve the perception of
alcohol (by introducing new products include
ingredients used in beauty products)
Encourage women to think alcoholic
beverages more as supplemental like
nutrition drinks
1/6
/2015
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Sweeter tastes (eg: fruity)
Non-traditional flavors and ingredients
(eg: coenzyme q10)
released sparkling
hop (a fruity aroma
of fresh hops)
SO
In order to counter the trends Domestic Market
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Making
Alliances
In order to counter the trends View on domestic market
WHY?
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Source: http://www.kirinholdings.co.jp/
Rank Country Total
Consumption
(1000 kL)
Breakdown
by Country
Year-on-year
Increase
1 China 28,640 19.00% 14.60%
2 United States 23,974 15.90% 0.90%
3 Germany 9,555 6.40% -1.60%
4 Russia 8,450 5.60% 11.10%
5 Brazil 8,450 5.60% 2.80%
6 Japan 6,549 4.40% -0.70%
1/6
/2015
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In order to counter the trends View on International Market
Direct Investment
Licensing
agreement
Partnerships (joint
venture)
Acquisition
Wholly owned
subsidiary
Main entry
strategies adopted
by kirin
Gain more on Japan Market Younger People & Female
Expand more potential international market
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