The case is predicated on the strategic entry of Asahi’s into the UK beer market to identify its key issues and prospects through channels such as distribution expansion, effective marketing strategies, and localization. It is the idea that one must keep Asahi’s original brand identity while designing the products for diverse consumer groups. The recommendations encompass channeling the distribution of goods, redefining the customer segmentation process, engaging in innovative marketing campaigns, and combining British cultural identity with branding activities. Through its experience in one of the most demanding markets in Japan and its ability to adapt to local preferences, Asahi can take advantage of the opportunity to enter the UK beer market, which is very competitive, while keeping its brand identity across borders.
Expanding product line
The strategy of Asahi to expand its product line to include more specific flavors of the UK may not be the most reasonable as it can lead to losing the uniqueness and identity of the brand. Through Asahi Super Dry in Japan and its position as the number one lager beer brand, the company revealed its potential to bring something unique and special that most consumers would love and appreciate. Introducing new tastes or just tiny tweaks to meet British tastes can be a breach of Asahi’s brand image as a premium quality brand with a distinctive flavor profile (Beeson, 2018). The case demonstrates that Asahi succeeded because of the success of Asahi Super Dry. This beer type was challenging against Japanese consumers’ standards but captured their attention with an unexpected fresh taste. Seeing this, instead of the expansion of the whole product line, Asahi should focus on expansion within the existing product line, consolidating the company’s strong points and using its innovations to offer a variety of new sensations to customers while keeping the brand’s unique identity and premium position in the UK market.
Distribution Expansion
Widening the distribution channels via the current Coors partnership is an essential strategy that Asahi will use to expand the business and strengthen its presence among the defined target market, which includes young, trendy professionals in the UK. Although the cooperation with Coors has fostered our initial market penetration and distribution, the option of forming other partnerships with distributors may provide us with some competitive strengths. As a first step, diversifying distribution collaboration with several agencies allows Asahi to take advantage of other agencies’ professionalism and extensive networks. The firms comprising the supply chain also possess different strengths and skills. These could be experienced connection channels in stores, bars, or restaurants. By cooperating with multiple distributors, Asahi can reach the top retailers of different market segments, other specialty channels, and local zones. Thus, this strategy increases the level of exposure of the brand and its accessibility from various channels, from the most traditional to the most innovative ones, always meeting customer needs and purchasing behaviors.
Additionally, as the company collaborates with more distributors, this tendency toward forming diversified distribution channels mitigates the risk of disruptions or limitations arising from exclusive agreements (Mulier 2019). Even the contractual arrangements with Coors should be regarded; Asahi can enter negotiations with new partners and negotiate contracts to co-exist alongside the existing agreement without breaking contractual terms. This strategic diversification adds flexibility and agility to the business, thus allowing adaptability to changing market dynamics, legal environments, and competitive setups. The situation shows that the company prioritizes strategic expansion and market entry. However, the initial dispersal through Coors’ channels limits Asahi’s ability to compete with more prominent players (Umemura & Slater, 2021). Asahi will be facing tough competition from renowned brands such as Budweiser, Stella Artois, and Holstein Pils, requiring the company to implement innovative distribution strategies to differentiate itself and appeal to consumers. The cooperation with distributors focused on niche markets or innovative retail concepts is in line with Asahi’s brand positioning and target audience desires to keep the shoppers engaged and loyal in their shopping.
Marketing and Brand Building
One of the significant factors that require close attention is refining the market segmentation strategy to ensure that it is effective for the success of Asahi in the UK market, given what the case tells us. Initially, the company chose the trendy and professional urban population as its first target. After having this group as its first customers, the brand can go beyond by expanding the distribution more obviously, deliberately avoiding diluting the brand image. Such a strategy multiplies prospects and reaches beyond the listed demographic’s confines to retain popularity among the majority. In modern societies, customers, especially those in the 18-35 age group, reflect a growing predilection for exceptional and top-notch products (Asahi Group, 2022). This is concurrent with Asahi’s pursuit of attracting a youthful and fashionable clientele. The company had turned into a quality-driven brand, particularly with its signature product, the Asahi Super Dry. Consequently, the use of this strong branding strategy in Japan forms the basis for building brand recognition and loyalty in the UK market. Ashing upon such a positioning, Asahi could get an identity of distinctive and aspirational beer option par excellence for beer lovers spoilt for carrying innovative and premium options in their beer baggage.
Another strategic element of refined market segmentation is identifying and wholeheartedly getting to know consumers’ segments that align with Asahi’s brand values and offerings. Coming at this demographic may have focused on the trendy professional young people; this engagement can target other urban segments like the young millennials or the affluent urbanites. Through demographic divisions such as each segment’s most preferred genres, lifestyles, and food habits, Asahi can fine-tune its advertising approaches and distribution policies to precisely and successfully connect with its particular audiences. Widening brand footprint by opening up to more and more mainstream venues as long as having a uniform brand style that ensures integrity calls for solid coordination and execution. Asahi must ensure the product placement of its goods is appropriate so that the classy brand’s image and allure are retained through the channels (Verstl, 2021). Developing innovative marketing campaigns tailored to the UK market should involve adopting new strategies and giving the brand more visibility in the market. Using the number one position in the Japanese market as a foundation, the company may proceed to map its custom storylines and messages, becoming compellingly catchy and appealing to an audience in the UK, such as expression of the unique manufacturing skills and heritage of Asahi Super Dry and amplifying its differentiated taste profile via experiential marketing events to sustain consumer excitement in the brand. In addition, focusing on a persistent appeal to transitional fashion lovers who pursue ever-changing trends and cultural shifts drives the point home about staying up-to-date.
Localization
The localization approach is one of the most critical methods of reaching the UK market while preserving the Japanese brand character. By applying British culture to its marketing schemes, Asahi can deeply bond with its customers, making its brand more likable and accepted in the UK. Localization is one of the marketing strategies Asahi can employ by using cultural aspects of Great Britain in its advertising campaigns and messaging (Cornell & Cornell, 2020). Utilizing UK icons like known landmarks, customs, or colloquial expressions in the brand promises can allow Asahi to achieve a feeling of belonging on a subconscious level and demonstrate its respect for the local heritage, such as the use of pictures of traditional British pubs or the London Beer Festival which will indicate the desire of Asahi brand to pay tribute to British tradition as well as to add a uniquely Japanese perspective while introducing the brand.
Apart from that, localizing the product line and the product packaging design in a way that is appealing to the British audience can additionally speed up the localization process. Asahi could develop unique flavors corresponding to British tastes or seasonal events or pack his brand in traditional British containers. Asahi can prove that it could adjust to the consumer desires in the UK market by showing that the company has flexibility and responsiveness to the local market dynamics. Moreover, being an active community player through partnerships closely connected to the UK identity and values will create a warm reception within the consumer audience (Mulier 2019). For example, getting involved in or sponsoring local sporting events or cultural festivals provides Asahi with an excellent medium to bond with customers personally and demonstrate the company’s everyday support for the community.
References
Asahi Group. (2022). Asahi Group’s History | ASAHI GROUP HOLDINGS. ASAHI GROUPHOLDINGS. Retrieved March 14, 2024, from https://www.asahigroupholdings.com/en/company/history/
Beeson, J. (2018, January 16). Asahi Super Dry relaunched in the UK. morningadvertiser.co.uk. https://www.morningadvertiser.co.uk/Article/2018/01/16/Asahi-Super-Dry-relaunched-in-the-UK
Fuller’s. (2018). A New Chapter in our History. Retrieved March 14, 2024, fromhttps://www.fullers.co.uk/blog/brewery-articles/proposed-sale-of-fullers-beerbusiness-to-Asahi
Geller, M. Hussein, Z. (2019) Japan’s Asahi looks beyond Brexit Britain with Fuller’s beerbuy. https://www.reuters.com/article/idUSKCN1PJ0Q4/
Cornell, M., & Cornell, M. (2019, January 30). A short history of Asahi, in which beer getscalled ‘bitter horse-piss wine’ – Zythophile. Zythophile – “Zee-tho-fyle”, by Martyn Cornell, an Award-winning Blog About Beer Now and Then, Founded in 2007.https://zythophile.co.uk/2019/01/30/a-short-history-of-asahi-in-which-beer-getscalled-bitter-horse-pisswine/#:~:text=Super%20Dry%20was%20launched%20Canada,brew%20Super%20y%20under%20licence.
Mulier. (2019, January 25). Japan’s Asahi Buys London Pride Brewery for $330 Million.Bloomberg. Retrieved March 14, 2024, fromhttps://www.bloomberg.com/news/articles/2019-01-25/asahi-buys-fuller-s-londonpride-beer-in-330-million-deal
Umemura, M., & Slater, S. (2021). Institutional explanations for local diversification: ahistorical analysis of the Japanese beer industry, 1952-2017. Journal of StrategicMarketing, 29(1), 71-92.https://doi.org/10.1080/0965254X.2019.1685567
Verstl. (2021). UK brewer Meantime positions itself as the “forbearer of craft beer.”BRAUWELT. Retrieved March 14, 2024, from https://brauwelt.com/en/internationalreport/europe-russia/643685-uk-brewer-meantime-positions-itself-as-“forbearer-ofcraft-beer”
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