HOST 1096: Marketing Situational Analysis of Japanese Beer Industry

This report presents a comprehensive situational analysis of the Japanese beer industry. It begins with an overview of the industry, tracing its origins and highlighting its popularity and consumption trends. The report then delves into key market drivers, including consumer demand and economic fa...Read More

Marketing

MARKETING 1
4. Situational Analysis
4.1 Industry Analysis
4.1.1
Beer is a popular alcoholic drink which was introduced firstly in Japan during the 17th
century. It all started when Dutch traders opened a beer hall for sailors in Nagasaki. It was
established in the year 1869 in the town of Yokohama. After that date, it becomes the most
popular drink in Japan which is commonly consumed at homes (Mentalitch, 2019).
As discussed, it is the most popular drink in Japan as the people highly consumed beer.
There are around 187.37 million of people consumes the beer in the year 2012. In 2014, Japan
was recognized at the 51st spot which is equal to 42.3 liters of consumption of beer per person
(Mordor Intelligence, 2020).
4.1.2. Trends and Drivers
Consumers are the main drivers of the industry as the demand of the product is totally
bases on the taste of consumers. It is required for the company to take care of the people demand
so that they can satisfy with the product.
Fluctuation of economic is also key driver as the willingness of consumers are totally
relies on their demand. It has been found that the increasing economic helps to increase the
demand of consumers which directly affects the Hitachino Nest Beer business.
4.1.3.
Industry Trends

MARKETING 2
Growing preference for low alcohol: It is observed that the preference of consumers towards the
less percentage of alcohol has been increases.
Surging demand of beer: It is the largest and one of the fastest growing market that consume the
drink about one-third of global market.
Changing lifestyle- Changing lifestyle of consumers may affect the beer industry in terms of
volume of sales. As the consumers are getting more health conscious due to which their demand
towards low alcohol has been increases (Business Wire, 2019).
New Categories of Customers
The customers of beers are classified in different categories such as 38% of beer
consumers are loyalists, 25% of experimenters, 15% of are Aspirers, 12% of trend seekers and
10% are sippers (Restaurant Business, 2012).
4.1.4. Legal, Political &Economic Factors
In 2017, government of Japan carried out the amendments to Liquor tax to restrict retailer
discounting of alcohol. The amendments increase the prices of bills those are required to be paid
by the consumers.
4.1.5. Sociocultural Factors
It is observed that the market has been changing fast due to changing the lifestyle of
consumers. The lifestyle of consumers has been change as the demand of customers towards the
low alcohol has been increases.

MARKETING 3
Environmental change is one of the factors of sociocultural factors. The changing
weather decreases the production of beer which directly affects the market growth of beer
industry.
4.1.6. Technology Factors
The beer industry of Japan signed a contract with the Japan Natural Energy Co. in in
order to purchase 40 million kilowatt-hours of power from green energy sources. The green
power energy uses by the beer industry is beneficial for environment as it does not affects the
environment. But beer production consumes the high power of energy (Japanfs, 2015).
Government of Japan encourages the numerous players to star their business in long and
medium size enterprises to come up with the brand new and creative ideas to provide the solution
to world.
5. Competitive Analysis
5.1. Competitive Landscape
Sapporo Yebisu Beer, Kirin Ichiban Shibor, Suntory The Premium Malt’s , Sapporo
Nama Beer Black Label and many others are the top competitors of Hitachi Beer Company as
they provide the similar services to consumers (All About Japan, 2017).
Comparing points Sapporo Yebisu Beer Kirin Ichiban Shibor
Price More Expensive Low cost
Quality High Quality High Quality

MARKETING 4
Taste Aroma, great flavor, deep and
rich intensity
Mild, pure and smooth-tasting
beer (All About Japan, 2017).
5.2. Key Players (Key Competitors)
The competitors of the company supplies the similar goods to consumers but each and every
company provides the different flavor of beer to consumers. Different flavors strategy of the
companies gives them power to beat the competitors in the competition to gain the competitive
advantage.
The brand image of the companies is also one of the factors that help the companies to gain the
competitive advantage in the market.
5.3 Competitors vs Hitachino Nest Beer
Features Sapporo Yebisu Beer Kirin Ichiban Shibor Hitachino Nest Beer
Product Beer Beer Beer
Flavors Aroma, deep and rich
intensity
Mild, pure and
smooth-tasting beer
Regular and special
beers
Brand Value Low cost services Highly expensive Highly expensive but
less than Kirin
Ichiban Shibor
(Hitachino Nest Beer,
2020).

MARKETING 5
Competitor 1: Kirin Ichiban Shibor is the top competitor of the company as it provides the
similar services with the different techniques. It is the company that does not seems to make
mistakes and takes advantage of timely opportunities (Beville, 2014).
Competitor 2: Sapporo Yebisu Beer is also one of the competitors of the company that supplies
the beer to consumers. The company pricing strategy affects the business of Hitachino Nest Beer
as the consumers demand for low cost of beer is high due to which in terms of revenue, it beats
the competitors (All About Japan, 2017).
5.4. Competitive Advantage
It has been found that Hitachino Nest Beer is one of leading manufacturer of Beer
Company that provides the excellence quality of services to consumers. It is observed that the
company wins the gold medal in selling the beet due to which its brand image has been
increases. The company uses its strength to make it is more unique of different from the other
competitors. It has been seen that the company introduces the new flavors with the different
packages to attract the more consumers towards its products. Different flavors help the company
to gain the competitive advantage in the market by beating the other companies in terms of
services (Hitachino Nest Beer, 2020).

MARKETING 6
References
All About Japan. (2017). The Top 6 Beers in Japan. Retrieved From: https://allabout-
japan.com/en/article/1963/
Beville, R. (2014). Kiuchi Brewery. Retrieved From:https://japanbeertimes.com/2014/05/kiuchi-
brewery/
Business Wire. (2019). Analysis on the Beer Industry in Japan, 2019-2022 - Key Players are
Anheuser-Busch InBev, Asahi Group, Kirin Holding Company, Sapporo, and Suntory -
ResearchAndMarkets.com. Retrieved
From:https://www.businesswire.com/news/home/20190919005809/en/Analysis-Beer-
Industry-Japan-2019-2022---Key
Hitachino Nest Beer. (2020). About Us. Retrieved
From:https://hitachino.cc/en/brewery/company.html
Japanfs. (2015). Beer Production Using Renewable Energy Tops 8 Billion Cans. Retrieved
From:https://www.japanfs.org/en/news/archives/news_id035361.html
Mentalitch. (2019). History of Japanese Beer. Retrieved From:https://mentalitch.com/history-of-
japanese-beer/
Mordor Intelligence. (2020). Beer Market - Growth, Trends, and Forecast (2020 - 2025).
Retrieved From:https://www.mordorintelligence.com/industry-reports/beer-market

MARKETING 7
Restaurant Business. (2012). Who are your beer customers and what do they want?. Retrieved
From:https://www.restaurantbusinessonline.com/consumer-trends/who-are-your-beer-
customers-what-do-they-want
Statista. (2020). Beer market in Japan - Statistic & Facts.
https://www.statista.com/topics/5433/beer-industry-in-japan/