Kirin Brewery Co.

: In Search of A Growth Strategy

Class interaction

To discuss how kirin through market

segmentation and expansion as to counter the
depression of the beer market

Product & Service

Current Trend
Domestic Activities
International Activities

Kirin Slogan

Strong
Brand
Image

 Alcohol beverages

51%

Soft drinks and foods

31%

Pharmaceuticals

8%

Other business

10%

Source: The Yomiuri Shimbun, 2011

Knowing the trend of market and industry is not

enough, we also need to know :

In Population and its markets segmentation

10

 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

15

1/6/2015

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

16

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
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Domestic Market

From domestic
point of view

introduce new
products

emphasize on
good health

Kirin Green Label (With 70% less

carbohydrates than normal beer)
Introduce Kirin Zero (with no sugar
and low calories)
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Domestic Market
From domestic
point of view

Change target
market

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%)

emphasize on
younger people
and female

Both of market segments (young adult

and female)--- less affected by drunk
driving concerns
SO

ALSO
This segments are relatively untapped
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Domestic Market

Domestic
Market

younger
market (new
products)

Distinctive
packaging

Westernized
brand
names

Female
Market

Younger
Image

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

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1/6/2015

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In order to counter the trends

Domestic Market
Sweeter tastes (eg: fruity)
Non-traditional flavors and ingredients
(eg: coenzyme q10)
SO

released sparkling
hop (a fruity aroma
of fresh hops)
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In order to counter the trends

View on domestic market

Making
Alliances

WHY?
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Source: http://www.kirinholdings.co.jp/
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1/6/2015

Rank

Country

Total
Consumption
(1000 kL)

Breakdown
by Country

Year-on-year
Increase

China

28,640

19.00%

14.60%

United States

23,974

15.90%

0.90%

Germany

9,555

6.40%

-1.60%

Russia

8,450

5.60%

11.10%

Brazil

8,450

5.60%

2.80%

Japan

6,549

4.40%

-0.70%

luknanto@ugm.ac.id

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In order to counter the trends

View on International Market

Main entry
strategies adopted
by kirin

Direct Investment
Licensing
agreement
Partnerships (joint
venture)
Acquisition
Wholly owned
subsidiary
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 Gain more on Japan Market

Younger People & Female

Expand more potential international

market

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