Conjoint Analysis and Brand Launch

6 June 2017

Team: Arun Dhavani-Mallan, Asharani Ramanna. Pradipta Das, Tsai-Hsuan Lin Kirin Case Study- Conjoint Analysis and Brand Launch Kirin can launch the following four new brands of beer (Oishii-L, Oishii-S, Tei- karori-L and Tei-karori-S) without changing its key attributes of “Rich full-bodied” and “No aftertaste”. Oishii-L is large pack regular beer with regular calories and Oishii-S is small pack regular beer. Tei-karori-L is large pack beer of low calories whereas Tei- arori-S is small pack beer of low calories.

These new brands are differentiated by changing the secondary attributes like calories, packaging and glass color. New Product Profiles Kirin Oishii-L Kinn otshii-s Kirin Tei-karori-L Kirin Tei-karon-S Origin Japanese Price 6. 19 5. 49 Body Rich full bodied Aftertaste Very mild Calories Regular Low Packaging Six 120z Large Six 1202 small Glass Brown Painted Green Label It is expected that the introduction of the new beer brands from Kirin can have an dditional market share of 21 percent from our conjoint analysis.

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Kirin can take 3 percent from from Heineken, 5 percent from Becks, 3 percent from Bass/Guiness, 5 percent from Amtel light, 4 percent from Corona and 1 percent from Sapporo and Kirin. Kirin sells around 1 million cases prior to the new brands roughly 2 percent market share (50 million total USA import market). With the new brand Kirin’s total market share can achieve a staggering 23 percent behind Corona’s 35 percent market share.

From the positioning analysis it was concluded that Beck and Corona were the primary competitors for the Kirin. The conjoint analysis also shows the same result. Kirin’s new brands of beer cannot cannibalize its old brands; instead it can compete with European and Canadian beer. After the Kirin’s new brand launch the total market share of Japanese beer can be 25 percent wheres Kirin’s market share is 23 percent in US import beer market. This makes Kirin as clearly the No-I Japanese brand in U. S. import beer market.

Kirin can easily achieve the target of additional 400,000 cases of beer every year in addition to 1 million of beer they sell. As the USA import market is expected to sell 50 million cases, Kirin can expect to sell 10. 5(21 percent of 50 million) million cases with the new brands alone. Total revenue for Kirin from 10. 5 million cases can be around $245 million. The average gross margin of import beer per case is around $2, so Kirin can expect to make a gross profit of $21 million from the four new brands.

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