As stated in the introduction Asahi has three competitors in the beer market

As stated in the introduction asahi has three

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As stated in the introduction, Asahi has three competitors in the beer market, Karin, Sapporo, and Suntory: Kirin : One of the oldest, largest, and most diversified companies with an extensive distribution network. Strength in the beer market is lager beer, of which it holds a dominate market share. Still believes that lager is the Japanese beer of choice. Slow to respond to the trend of recent changing consumer preferences and promotes the stance that dry beer is a passing fad. Eventually Kirin released its own dry brand and its moderate success is due to the company’s size. Sapporo : Formed at the same time as Asahi after the dissection of Dai Nippon post WWII. Strength in the beer market is draft beer of which it leads in market share. Sapporo is probably Asahi’s closest competitor for total market share at 18.8 %. Eventually followed suit and released a dry beer to compete, although lagging in the market. Suntor y: Focuses on draft and malt beer products, of which malt seems to be declining as indicated by 0.7 % market share. Suntory released a dry beer as well with minimal success. At this time the company ranks last in the beer market with a 5.5 % market share. Legal/Political Factors All three competitors released dry products without product or packaging differentiation in hopes of capturing a percentage of the dry beer market and boosting sales. Asahi has challenged with intellectual property rights and the media attention has benefitted Asahi as the original dry beer creator and producer. This will help to secure Asahi has the leader in the dry beer market segment. The Japanese government monitors industries for potential monopolies, therefore Kirin cannot petition for increased market share at the risk of being divided into smaller companies.
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Asahi 6 A new license is required to open new production plants. The Ministry of Finance regulates licenses and may restrict them where there is a potential for industry excess capacity. This will not be a factor has the competitors production will eventually decrease as Asahi’s production increases to match sales demand as indicted by market share trends. Distributors and retailers are required to have licenses and new licenses are limited. This affects all companies. The retail price of beer and liquor tax is also regulated by the Ministry of Finance. This affects all companies as well. Social Environment The Japanese beer consumer has been, for the most part, conservative when it comes to change. This is reflected in the lager beer market share data and the fact that it has taken ~ 30 years to introduce and accept a draft beer into the market. However, as the market has become global and consumers have been exposed to more options and variety, their tastes and preferences have changed more rapidly as indicated from recent consumer research and taste trials. This change in consumer attitude will benefit the company that offers new and innovative products to the beer market such as Asahi dry beer.
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  • Fall '13
  • Jenny
  • Marketing, Asahi Breweries, Asahi

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