Marketing Decision Making

Kirin Assignment
Please answer the following questions (marking breakdown indicated on the right)

1.    What is Kirin’s situation and marketing challenge(s)?
(5%)

2.    Use the segmentation analysis output(s) to determine if the import beer market can be segmented in a useful way.  Describe the segments that emerge from this analysis. Are any segments appropriate for Kirin to target?  Support your decision with analysis and discussion.
(25%)

3.    Interpret and discuss the perceptual map of the beer market. What does the map tell you about the positioning strategies of the different brands?
(10%)

4.    Use the conjoint analysis outputs. Try to identify a product that will enable Kirin to sell sufficient incremental cases. Discuss the product designs considered and outline the process you followed to identify your chosen product. What market share (in real terms) can this product achieve? Are sales targets met?
(25%)

5.    Assess for potential cannibalisation, i.e. check if there is substantial loss in market share for the original Kirin product as a result of introducing the new Kirin product. Discuss any implications.
(10%)

6.    Based on the case, your overall analysis and findings, what would your overall recommendation(s) be to Kirin’s management?
(20%)
7.    Laboratory notes summary (please attach as appendix)
(5%)

Perceptual Data
Average score each brand achieves on each attribute from your sample of respondents.
Attributes / Brands    Amstel Light    Bass    Becks    Corona    Dos Equis    Heineken    Kirin    Molson    Moosehd    Sapporo    St. Pauli
Rich full-bodied taste    3.1    3.8    3.7    3.3    3.8    3.5    3.6    2.8    3.5    3.4    3.1
Good taste    3.5    3.9    3.8    3.5    3.9    3.5    3.6    2.9    3.7    3.5    3.2
No aftertaste    3.3    2.3    2.8    3.2    2.8    2.9    2.7    2.6    3.1    2.9    2.8
Refreshing    3.5    2.8    3.5    3.6    3.6    3.3    3.3    2.8    3.6    3    3.1
Light    3.6    1.3    2    2.6    1.8    1.8    2.3    2.2    2.6    1.9    2.2
Lower price    2.1    1.6    1.7    2    2.2    2.2    1.8    1.9    2.1    1.4    1.8
Good value for money    2.8    2.7    2.6    2.7    3.4    2    2.6    2.4    2.9    2    2.5
Prestigious-popular    3.4    2.5    3.3    3.1    2.6    3.1    3.1    2.5    3.4    3    2.6
Masculine    2.5    3.9    3.1    2.9    2.9    3.3    3    2.3    2.8    2.4    2.3
Country with brewing tradition    3.5    3.3    3.8    2.3    2.7    2.3    3.5    2.4    3.1    2.9    2.5
For young people    2.8    1.8    2.1    2.6    2.4    2.1    2.4    2.2    2.6    3.1    2.3
Gives buzz    2.4    3.1    2.9    2.5    2.5    2.9    2.8    2.4    2.8    3.1    2.5
Drink at picnics & outings    3.3    2.4    3.1    3.3    3.5    3.3    3.1    2.5    3.4    3.3    2.6
Drink at bar    3.5    3.7    3.5    3.5    3.3    3.1    3.4    2.6    3.4    3.4    2.7
Drink with friends    3.5    3.5    3.6    3.5    3.7    3.5    3.5    2.8    3.5    3.5    3.1
For  home after work    3.2    3.8    3.4    3.5    3.4    3.2    3.5    2.7    3.5    3.5    3
To serve guests at home    3.6    3.1    3.6    3.2    3.5    3    3.5    2.8    3.6    3.5    3.1

Conjoint Study Design
Attributes and attribute levels of the Conjoint study.
Attributes / Levels    Level 1    Level 2    Level 3
Origin    European    Canadian    Japanese
Price    6.19    5.49    4.79
Body    Rich full bodied    Regular    Crisp and clear
Aftertaste    Strong    Mild    Very mild
Calories    Full    Regular    Low
Packaging    Six 12Oz Large    Six 12Oz Small    Four 16Oz
Glass    Green Label    Brown Label    Brown Painted

Market Share Simulations
Market share predictions for different scenarios, using the First-Choice Rule.
Scenario / Product profiles    Heinekin+    Becks    Bass/Guiness    Amstel Light    Molson    Corona+    Sapporo    Current Kirin Product
Predicted market shares    13%    12%    14%    14%    3%    39%    2%    2%
…with Optimal Product 4 Modified    8%    9%    10%    5%    3%    18%    1%    1%

Existing Product Profiles
Labels and attribute levels for each existing product profile that already exists in the market.
Attributes / Existing Product Profiles    Heinekin+    Becks    Bass/Guiness    Amstel Light    Molson    Corona+    Sapporo    Current Kirin Product
Origin    European    European    European    European    Canadian    Canadian    Japanese    Japanese
Price    5.49    6.19    6.19    6.19    5.49    5.49    5.49    5.49
Body    Rich full bodied    Rich full bodied    Rich full bodied    Regular    Regular    Crisp and clear    Regular    Regular
Aftertaste    Mild    Strong    Strong    Mild    Mild    Mild    Mild    Mild
Calories    Regular    Regular    Full    Low    Regular    Regular    Regular    Regular
Packaging    Six 12Oz Small    Six 12Oz Large    Six 12Oz Small    Six 12Oz Small    Six 12Oz Small    Six 12Oz Large    Six 12Oz Small    Six 12Oz Small
Glass    Green Label    Green Label    Brown Label    Brown Label    Green Label    Brown Painted    Brown Label    Brown Label

New Product Profiles
Labels and attribute levels for each new product profile that you consider introducing into this market.
Attributes / New Product Profiles    Optimal Product 4 Modified
Origin    Japanese
Price    5.49
Body    Crisp and clear
Aftertaste    Mild
Calories    Low
Packaging    Six 12Oz Large
Glass    Brown Painted

:)

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