Description
This is report for final positioning and targeting of the product Ichiban Shibori of Kirin USA. It has cluster analysis based on SPSS results for the case KIRIN USA.
Positioning and Targeting of Ichiban Shibori
This is the assignment for final positioning and targeting of the product Ichiban Shibori of Kirin USA.
Assignment 2-3 2009
In this document the following steps have been taken to arrive at the final decision on the attributes of the new product and the targeted segment for the new product.
Utility Calculation • Maximum Utility • Possible Utility
Analysis • Target Preference • Utility Mix • Segment Utility Match
Decision • Attributes • Targetting • Positioning
Utility Calculation
Coefficientsa Unstandardized Coefficients Model 1 (Constant) Canadian European 6.19 5.49 Regular No B 5.533 -2.133 2.267 -.733 .467 .667 -2.133 Std. Error .748 1.990 1.960 2.289 1.327 1.549 1.833 1.833 1.428 -.575 .656 -.161 .130 .162 .236 -.556 -.452 Standardized Coefficients Beta t 7.394 -1.072 1.157 -.320 .352 .430 .473 -1.164 -1.214 Sig. .086 .478 .454 .803 .785 .741 .719 .452 .439
Crisp and clear .867 mild -1.733 a. Dependent Variable: ranking
The equations for utility calculation are as below: (1) ?1 + ?2 + ?3 = 0 (2) ?1 - ?3 = Coefficient of Level 1 (3) ?2 - ?3 = Coefficient of Level 2 Using the coefficient and the equations (1), (2), (3) to find the utility of each level of attribute we get the following base utility and other level utility for each attribute Origin Attribute Canadian European Japanese* $6.19 $5.49 Level -2.18 2.22 -0.04 -0.64 0.56 Utility
Price per six-pack
2
Assignment 2-3 2009
Regular 0.16 Crisp 0.36 Full -0.51 No -0.84 Aftertaste Mild -0.44 Strong 1.29 *The Origin is uncontrollable hence the utility from that attribute is fixed. Body The maximum utility that can be generated for the new brand based on the mentioned conditions = (-0.04+0.56+0.36+1.24) = 2.12 Also in order to better understand competitive positioning the utility of various Groups of Brands is listed as below
Group of Brands Beck’s Bass Guinness Heineken, St. Pauli, Grolsch Amstel Light Corona, Dos Equis, Tecate Kirin, Sapporo Molson, Labatt, Moosehead
Utility 3.56 2.36 1.82 1.29 0.42 0.22 -1.91
From the above table it is clear that the new product if launched with maximum possible utility its value is much higher than its Japanese competitor Sapporo and just below Bass Guinness. Analysis The following 3 parameters need to be considered before suggesting a possible winning combination (1) Preference of Target Segment (2) Best Utility Mix (3) Segment to Utility Match Preference of Target Segment
Final Cluster Centers Cluster 1 (100) Rich full-bodied Light beer No aftertaste 2 3 3 2 (109) 5 4 5 3(108) 7 4 5
3
Assignment 2-3 2009
Refreshing Goes down easily Gives a "buzz" Good taste Low price Good value From country with brewing tradition Prestigious brand High quality Drink at picnics Masculine For young people Drink with friends Drink at home To serve dinner guests For dining out Drink at bar 2 1 3 2 2 2 2 2 3 2 3 5 5 2 2 6 5 6 6 5 4 7 5 3 3 6 6 6 6 6 2 3 3 0 3 3 3 6 6 3 0 4 5 4 7 7 4 8 5 6 4
As seen from the above table based on the 3 cluster analysis there are 3 types of particular choices of the 3 clusters. Cluster Name Cluster 1 (Beginners) Cluster 2 (Social Drinkers) Cluster 3 (Frequent Drinkers) Cluster Size 100 109 108 Preferences ? Price Conscious ? Used on Social Occasions and Home Consumption ? High on All Preferences ? Good Taste is very Important ? Taste and Smoothness with low aftertaste are important Dimensions
Best Utility Mix It is given in Exhibit 5 footnotes that the new product is simulated with rich full bodied taste and no aftertaste. Based on this simulation the utility value of the new product would be = (-0.04 + 0.56 – 0.51 – 0.84) = -0.83
4
Assignment 2-3 2009
This combination would place the new product with a utility value closer but lower than existing Kirin and Sapporo products and higher than Canadian Beers. But being a full bodied beer it is possible to make the beer have a strong aftertaste which will increase the utility to = -0.83 + 0.84 + 1.29 = 1.30 This change would place the new product utility just above the lowest utility European Beer hence making it the preferred choice among non European imported Beers. Segment to Utility Match It can be observed that Kirin product are relatively low priced hence can be taken up by the Cluster 1 segment but this segment is not an opinion driver about imported beer market. Kirin with its utility closer to European Beer will be able to target the Cluster 2 segment which is not particular on high quality but uses the Beer on social occasions. Also considering the cluster size as a representative sample this is the largest cluster size. Cluster 3 would prefer European Beers compared to Japanese Beer due to their high rating on country of origin dimension. Hence this segment would not be profitable if targeted by the new product. Also the new product has a significantly higher utility than existing Japanese brands so cannibalization by the product will turn to positive growth of sales in the overall market for Kirin.
Decision
The final recommendation to the Kirin USA Inc. for the launch of Ichiban Shibori is (1) Launch a product with a. Price $ 5.49 b. Regular Body c. Strong Aftertaste (2) Target the Social Drinkers by a. Promoting it as a Social Beer b. Changing the name from Ichiban Shibori to an European name (Icebreaker) (3) Position the New Product a. Better than non European Imported Beers b. Comparable to European Origin Beers
5
doc_887520755.pdf
This is report for final positioning and targeting of the product Ichiban Shibori of Kirin USA. It has cluster analysis based on SPSS results for the case KIRIN USA.
Positioning and Targeting of Ichiban Shibori
This is the assignment for final positioning and targeting of the product Ichiban Shibori of Kirin USA.
Assignment 2-3 2009
In this document the following steps have been taken to arrive at the final decision on the attributes of the new product and the targeted segment for the new product.
Utility Calculation • Maximum Utility • Possible Utility
Analysis • Target Preference • Utility Mix • Segment Utility Match
Decision • Attributes • Targetting • Positioning
Utility Calculation
Coefficientsa Unstandardized Coefficients Model 1 (Constant) Canadian European 6.19 5.49 Regular No B 5.533 -2.133 2.267 -.733 .467 .667 -2.133 Std. Error .748 1.990 1.960 2.289 1.327 1.549 1.833 1.833 1.428 -.575 .656 -.161 .130 .162 .236 -.556 -.452 Standardized Coefficients Beta t 7.394 -1.072 1.157 -.320 .352 .430 .473 -1.164 -1.214 Sig. .086 .478 .454 .803 .785 .741 .719 .452 .439
Crisp and clear .867 mild -1.733 a. Dependent Variable: ranking
The equations for utility calculation are as below: (1) ?1 + ?2 + ?3 = 0 (2) ?1 - ?3 = Coefficient of Level 1 (3) ?2 - ?3 = Coefficient of Level 2 Using the coefficient and the equations (1), (2), (3) to find the utility of each level of attribute we get the following base utility and other level utility for each attribute Origin Attribute Canadian European Japanese* $6.19 $5.49 Level -2.18 2.22 -0.04 -0.64 0.56 Utility
Price per six-pack
2
Assignment 2-3 2009
Regular 0.16 Crisp 0.36 Full -0.51 No -0.84 Aftertaste Mild -0.44 Strong 1.29 *The Origin is uncontrollable hence the utility from that attribute is fixed. Body The maximum utility that can be generated for the new brand based on the mentioned conditions = (-0.04+0.56+0.36+1.24) = 2.12 Also in order to better understand competitive positioning the utility of various Groups of Brands is listed as below
Group of Brands Beck’s Bass Guinness Heineken, St. Pauli, Grolsch Amstel Light Corona, Dos Equis, Tecate Kirin, Sapporo Molson, Labatt, Moosehead
Utility 3.56 2.36 1.82 1.29 0.42 0.22 -1.91
From the above table it is clear that the new product if launched with maximum possible utility its value is much higher than its Japanese competitor Sapporo and just below Bass Guinness. Analysis The following 3 parameters need to be considered before suggesting a possible winning combination (1) Preference of Target Segment (2) Best Utility Mix (3) Segment to Utility Match Preference of Target Segment
Final Cluster Centers Cluster 1 (100) Rich full-bodied Light beer No aftertaste 2 3 3 2 (109) 5 4 5 3(108) 7 4 5
3
Assignment 2-3 2009
Refreshing Goes down easily Gives a "buzz" Good taste Low price Good value From country with brewing tradition Prestigious brand High quality Drink at picnics Masculine For young people Drink with friends Drink at home To serve dinner guests For dining out Drink at bar 2 1 3 2 2 2 2 2 3 2 3 5 5 2 2 6 5 6 6 5 4 7 5 3 3 6 6 6 6 6 2 3 3 0 3 3 3 6 6 3 0 4 5 4 7 7 4 8 5 6 4
As seen from the above table based on the 3 cluster analysis there are 3 types of particular choices of the 3 clusters. Cluster Name Cluster 1 (Beginners) Cluster 2 (Social Drinkers) Cluster 3 (Frequent Drinkers) Cluster Size 100 109 108 Preferences ? Price Conscious ? Used on Social Occasions and Home Consumption ? High on All Preferences ? Good Taste is very Important ? Taste and Smoothness with low aftertaste are important Dimensions
Best Utility Mix It is given in Exhibit 5 footnotes that the new product is simulated with rich full bodied taste and no aftertaste. Based on this simulation the utility value of the new product would be = (-0.04 + 0.56 – 0.51 – 0.84) = -0.83
4
Assignment 2-3 2009
This combination would place the new product with a utility value closer but lower than existing Kirin and Sapporo products and higher than Canadian Beers. But being a full bodied beer it is possible to make the beer have a strong aftertaste which will increase the utility to = -0.83 + 0.84 + 1.29 = 1.30 This change would place the new product utility just above the lowest utility European Beer hence making it the preferred choice among non European imported Beers. Segment to Utility Match It can be observed that Kirin product are relatively low priced hence can be taken up by the Cluster 1 segment but this segment is not an opinion driver about imported beer market. Kirin with its utility closer to European Beer will be able to target the Cluster 2 segment which is not particular on high quality but uses the Beer on social occasions. Also considering the cluster size as a representative sample this is the largest cluster size. Cluster 3 would prefer European Beers compared to Japanese Beer due to their high rating on country of origin dimension. Hence this segment would not be profitable if targeted by the new product. Also the new product has a significantly higher utility than existing Japanese brands so cannibalization by the product will turn to positive growth of sales in the overall market for Kirin.
Decision
The final recommendation to the Kirin USA Inc. for the launch of Ichiban Shibori is (1) Launch a product with a. Price $ 5.49 b. Regular Body c. Strong Aftertaste (2) Target the Social Drinkers by a. Promoting it as a Social Beer b. Changing the name from Ichiban Shibori to an European name (Icebreaker) (3) Position the New Product a. Better than non European Imported Beers b. Comparable to European Origin Beers
5
doc_887520755.pdf