Kirin Case (Segmentation-Targeting, Conjoint)
Using the market simulator in conjoint analysis, predict market shares for the proposed new Kirin beer and another five alternative options that Kirin could consider varying the calorie and packaging designs.
Note: Use the “share of preference rule” under “Choice Rule” when running the market share simulation.
a. Report the market shares for each of the six new product combinations. (2 points)
b. Report which combination maximizes Kirin’s total market share. (2 points)
c. Given the product design that maximize market share in point b, how would it affect the volume sales of the original Kirin beer? Treat the existing product profile “Sapporo/Kirin Old” as a representation of the original Kirin beer. The sales of the original Kirin is one million cases per year (page 5 of the case). (5 points)
d. With the original Kirin beer and the new proposed beer (in point b) both in the market, could Kirin reach the goal of increasing the US sales by 300,000 – 400,000 cases each year? You will need to convert the predicted market shares you get from the conjoint simulations into more realistic market shares taking into account consumers’ awareness and product distribution levels. Information about awareness and distribution is given in Exhibit 6 and the total volume sales of the US import beer market is estimated to be 50 million cases in 1990 (page 7 of the case). To convert the market shares, fill out the last two columns of the following table using the predicted market shares (denoted as ms from conjoint simulation):
the graphs please look at the file name question 3d
Once you compute the last column “converted market share” in the table above, you could then calculate the total sales for Kirin Old and proposed new Kirin. (7 points)
e. Are the original Kirin and the proposed new Kirin competing for the same segment(s) of consumers? (4 points)