Conjoint and Segmentation analysis

The KIRIN Case study

Sejong YOO (B00702551)

BLANLUET Ambroise (B00603115)
GABELLA Victor (B00698126)
HATIM Leila (B00604795)

Contents
Background
Key issues
Conjoint Analysis
KIRIN BEER
Conjoint and Segmentation
Analysis for ICHIBAN SHIBORI

Segment Analysis
Recommendation

Background
#1 Beer firm in Japan
KIRIN

KIRIN Brewery Limited was the largest beer

firm in Japan, and fourth largest in the world.

Dominant market leader in Japans beer market

Although Kirin diversified into food, liquor, and

even biotechnology, its performance relied largely
on its market position in beer. In 1990 its market

Asahi launched the new beer and achieved

favorable market acceptance

share was almost 50% in Japan, nearly twice its

nearest competitor, Asahi. Sapporo was the third
largest brewer in Japan, followed by Suntory.

Kirin answered with a new product, Ichiban

Shibori, which was a huge success

Background
US import Market

On the US market, Kirin started with a

niche strategy and is trying to get new
consumers

US import beer market is mostly made of young

upper-middle classes

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

It is dominated by European and Mexican beer

producers
Among Japanese producers, Kirin is only second
to Sapporo

Angeles.

Key Issues

New product launch in the US

Market Share in US

Product attributes

Segmentation and
Targeting

They think about bringing Ichiban Shibori to

the US market

Kirin would need to sell an additionnal

300-400.000 cases to beat Sapporo

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

Product Attributes
Are our new product attributes suitable to the
consumers in the US

Conjoint
Analysis

Discrepancy between actual vs predicted M/S

Based on
managerial
judgments
on
competitors
European
Heinken

Becks

Bass
Guinness

Standard
Awareness

100
100
27.0%

50
80
13.5%

30
70
8.1%

25
100
6.8%

65
85
17.6%

60
100
16.2%

20
50
5.4%

20
50
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%

First Choice

13.0%

12.0%

14.0%

14.0%

3.0%

39.0%

5.0%

N/A

Choic of
preference
Logit

16.0%
16.0%

15.0%
14.0%

14.0%
14.0%

14.0%
14.0%

11.0%
10.0%

17.0%
22.0%

13.0%
11.0%

Awareness
Distribution

Amstel
Light

Molson

Corona

Sapporo

Old Kirin

Note

0.6 SA * 0.4 SD

Choice role is dependent on the context.

- High Stake choice -> First Choice
- High Variety of Seeking -> Choice of Preference
- In between -> Logit

Discrepancy between actual vs predicted M/S

Weighted Average

Why discrepancy?
European

First Choice

Choic of preference

Logit

39%

40%

All the other tangible and

intangible attributes that

30%

are not reflected in the

23%

product profile.

22%

20%

16%16%

- Brand Power

13%

- Distribution Networks
- Advertising Budget

15%
14%
13%
12%

14%14%14%
9%

10%

16%

16%
14%14%14%

10%

17%
13%
11%

11%
10%
6%
3%

0%

Heinken

Becks

Bass Guinness

Amstel Light

Molson

Corona

5%

Sapporo

6%

Kirin

Conjoint Analysis : New product profile

Origin
European
Canadien
Japanese

Aftertaste
Strong
Mild
Very Mild

Calories
Price
6.19
5.49
4.79

Body
Rich Full Body
Regular
Crisp and Clear

Full
Regular
Low

Packaging
Six 120z Large
Six 120z Small
Four 160z

Glass
Green Label
Brown Label
Brown Painted
9

Methodology 1
Each attribute Level - First Choice

The relationship between each product

attribute and the market share

10

Conjoint Analysis: Attribute Test 1

Kirin New
(Baseline)
Attributes

Tests

Origin

Price

Body

10

Aftertaste

11

12

Calories

13

14

Packaging

Glass

Curren
Curren
Curren
Curren
Curren
Curren
Curren
Curren
Curren
Curren
Curren
Curren
Curren
Curren
Curren
New M/S
New M/S
New M/S
New M/S
New M/S
New M/S
New M/S
New M/S
New M/S
New M/S
New M/S
New M/S
New M/S
New M/S
New M/S
t M/S
t M/S
t M/S
t M/S
t M/S
t M/S
t M/S
t M/S
t M/S
t M/S
t M/S
t M/S
t M/S
t M/S
t 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%

Kirin

n/a

4%

n/a

7%

n/a

9%

n/a

4%

n/a

5%

n/a

3%

n/a

2%

n/a

6%

n/a

5%

n/a

13%

n/a

8%

n/a

13%

n/a

10%

n/a

4%

n/a

9%

11

Conjoint Analysis: Attribute Test 1 Graph

6.62%

European

Origin

8.52%

Canadian
3.79%

6.19

Price

5.21%

4.79
Regular

Body

3.15%

Baseline: 3.94

Crisp and Clear 1.89%

Strong

Aftertaste

6.31%

Mild

5.05%

Full

Calories

13.25%

Low

8.36%

Six 120z Large

Packaging

12.62%

Four 160z

9.94%

Green Label

Glass

4.26%

Brown Painted

0.00%

8.52%

3.50%

7.00%

10.50%

14.00%

12

Methodology 2
Global attribute Level - Choice of Preference

Optimization of the attribute

13

Conjoint Analysis: M/S Optimization

European

5 optimal products that maximize M/S

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%
14

Conjoint Analysis: Optimization for new product

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

M/S

16%

16%

16%
15

Recommendation on product profile

Price & Packaging

Sell at 6.19 per case
Premium and large
packaging

Market Share
Initial product profile : 12 %
New product profile: 16%

Body, After taste, and Calories

Rich Full Body
Mild After taste
Low calories

Glass
Brown Painted

16

Target consumers
Who is our target consumers and going to
buy our product ?

Segmentation
Analysis

17

Segmentation Analysis

Cluster Size

Size / Cluster

Cluster 1

Cluster 2

Cluster 3

Number Of
Observations

115

103

99

Proportion

36.3%

32.5%

31.2%

31.20%

36.30%

32.50%

18

Segmentation Analysis on the taste

Segmentation Variables
1.98

Rich full-bodied

5.26
7.48
3.16

Light beer

4.06
4.03
3.17

No aftertaste

5.05
5.68
3.2

Refreshing

5.14
7.02
3.47

Goes down easily

5.65
6.64
2.97

Gives a "buzz"

3.47
3.81
0.426

0.748

Good taste

8.33
0

2.25

4.5

6.75

19

Segmentation Analysis on price and image

Segmentation Variables
3.1

4.13

Low price
3.71

4.63

4.55

Good value
3.24

5.84

4.05
4.24

ountry with brewing tradition

2.83

3.01
3.18

Attractive bottle
2.54

3.31

Prestigious brand

3.85

1.42

5.04

High quality

7.44

2.2

2.32

For young people

2.19

Masculine
0

2.56

3.33
4

20

Segmentation Analysis on consumption

Segmentation Variables
2.29

Drink with friends

6.3
5.83
2.1

5.22

Drink at home

6.02
2.54

6.03

To serve dinner guests

6.53
2.83

6.27
6.3

For dining out

2.82

5.14
5.3

Drink at bar

3.56

5.13
5.15

Drink at picnics
0

1.75

3.5

5.25

21

Segmentation Analysis
Discriminant Variables
Cluster 1

Cluster 2

Cluster 3

8.6

Weekly consumption

9.73
9.9

4.783
4.8
4.8

Age (1-7)

5.383
5.6
5.4

Income (1-7)
4.322
4.5
4.6

Education (1-6)
1.139
1.1
1.1

Sex (M=1)

3.513
3.5
3.5

Adapt to new situations

3.33
3.4
3.2

Make friends easily

3.583
3.6
3.5

t like to be tied to timetable

3.165
3.2
3.0

Like to take chances

3.278
3.4
3.2

Like to travel abroad

3.487
3.6
3.4

Like ethnic food

2.948
2.9
3.0

Knowledgeable about beer

0

2.5

7.5

10

22

Recommendation on segmentation and targeting

Advertising Scope

Focused regional advertising

Demographic information

Male, Aged 40-50, Mid and high income

and education,Weekly consumption

1
2
2
3

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.

23

Recommendation on segmentation and targeting

Narrowly Targeted advertising

Expanding target customers

Medium of the advertising

Our products compatibility with

Cluster 3

Cluster 2 and 3 are quite similar

preference in beer.

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 dont have enough advertising budget, we

need to invest on point of advertising focusing on
distributors such as bars, retail chains, and
restaurants.
24

Thank you

Name Surname
Donec ullamcorper nulla non
metus auctor fringilla.

Name Surname

Name Surname

Sed posuere consectetur est

venenatis at lobortis.

Integer posuere erat a ante

posuere velit aliquet.

25