ASAHI GROUP HOLDINGS, LTD. Management Strategy:
Alcohol Beverages Business
2023 Review and Future Direction
March 19, 2024
Asahi Breweries, Ltd.
Asahi Breweries, the Value-seeking Firm
Economic growth | Economic stagnation | C | Uncertain times (VUCA) | |||
period (bubble) | (3 lost decades) | |||||
O | ||||||
Shrinking market, hobbies | 100 -year lifespan, changing lifestyles | |||||
VID- | ||||||
become more diverse | ||||||
and individual | ||||||
19 | ||||||
pandemic | Create new markets | |||||
through innovation | ||||||
Launched | ||||||
Super Dry | ||||||
New value: | Entered new categories, | |||||
Fresher taste | general alcohol beverages | |||||
1980 | 1990 | 2000 | 2010 | 2020 | 2024 |
Volume-chasing firm | Value-seeking firm |
2
Ongoing Change in Organizational Culture
A company making delicious beer and alcohol beverages
Centered around the company
and company products
Competes on volume
Competes with similar products, competes on price
Battles on product quality (functional value)
A company that makes life good,
with its great beer and alcohol beverages
Centered around customers (consumers)
Competes on brand value
Pursues new, unique value
Seeks to move people
(surprise, impress, excite)
ASAHI BREWERIES.LTD. | 3 |
A New Management Strategy Focused on Sustainable Profit Growth
KGI
Pursuing volume share
in zero-sum markets
Never lose on sales in a zero-sum market
Less investment | Push products | ||||
in enhancing | by appealing | ||||
brand value | low prices | ||||
Stop selling, | Company | ||||
driven | Develop | ||||
remove products | |||||
due to | products | ||||
ready for sale | |||||
sluggish sales | |||||
Conditional | |||||
expenditure, | |||||
discount sales | |||||
ASAHI BREWERIES.LTD. |
KGI
Customer-driven
sustainable profit growth
Customer creation
Expand demand, markets
Sustainable | Use business | |||
profit growth, | resources to | |||
greater | improve | |||
business | customer value | |||
efficiency | ||||
Customer | Invest | |||
Acquire/retain | creation | |||
in enhancing | ||||
loyal customers | ||||
brand value | ||||
Innovative | ||||
product | ||||
development |
4
Innovation Chain (New Value Creation)
ASAHI BREWERIES.LTD. | 5 |
Outcome of Structural Reform Initiatives
Various structural reforms
・Price revisions Offset cost increases
・No. of CC brands*2 | down 45% |
・Disposal | down 45% |
・Products requiring | |
special processing | down 20% |
・Factory operation*3 | up 10% |
・Improved, streamlined advertising see subsequent slides
・Efforts to improve on-premise | ─ |
profitability | |
*1 All of the above figures are 2023 results (vs. 2019) | |
*2 Cold category (beer, RTD & non-alcohol beverages) | |
*3 Includes the impact of two factory closures | |
(Kanagawa and Shikoku) |
New profit structure to surpass
pre-Covid levels
Unit price/L to sales/JPY
Growth
rate
+15％
Revenue and Core Operating Profit
Revenue | COP ratio | COP ratio (excl. liquor tax) | ||||
（JPY Billion） | ||||||
19.9% |
1,000 | 17.4% | 18.4% | 20.0% | |||
16.0% | 16.5% | |||||
800 | 15.0% | |||||
600 | 11.9% | 11.5% | ||||
10.6% | ||||||
9.8% | 10.1% | |||||
10.0% | ||||||
400 | 886.9 | |||||
758.3 | 786.2 | 811.3 | 5.0% | |||
200 | ||||||
722.1 | ||||||
0 | 0.0% | |||||
2019 | 2020 | 2021 | 2022 | 2023 |
ⒸASAHI GROUP HOLDINGS. All rights reserved. | 6 |
More Sophisticated and Efficient Marketing/Advertising
Brand strategy | Communication design | Product | ||
validation | ||||
Brand purpose | Kantar - NeedScope™ survey | |||
Kantar - Link™ survey | ||||
Information
benefits
Promised delicious taste (Functional benefits)
Reason to
believe (RTB)
Brand insights
ⒸASAHI GROUP HOLDINGS. All rights reserved. | 7 |
More Sophisticated and Efficient Marketing/Advertising
CM popularity ranking | Digital ratio (as proportion | |
(All industries) | of TV advertising spend) |
Source: CM Research Institute Data
Reference: Recent advertising awards | |||||
■ Nippon TV CM Award (Maru F), Nippon TV CM Awards 2023 | *2022 CM Award | ||||
■ Media Mid Excellence Award (Smart Drinking) and Excellence Award in the Under 60 Second TV CM category | |||||
(Maru F), 53rd Fuji Sankei Group Advertising Awards *Maru F won an award for 3rd consecutive year | |||||
■ Spot Gold Award (Film Division), Series Silver Award (Film Division), 76th Dentsu Advertising Awards | |||||
*First win in the TV category since 2005 (Maru F) | |||||
■ Commendation, Series Division, 17th Nippon Broadcasting System CM Grand Prix (Super Dry) | |||||
■ Medalist, Digital Category, 61st JAA Advertising Awards (Smart Drinking) | |||||
■ Mainichi Shimbun Special Prize, 91st Mainichi Advertising Design Awards (Maru F) | 8 | ||||
Ⓒ | ASAHI GROUP HOLDINGS. All rights reserved. | ||||
Key Strategic Stories for 2024 and Beyond
Increase competitiveness
Expand momentum
Implement structural reforms
More advanced
administration, improved
productivity, greater investment capacity
- Monetize Groupwide KGI
- Refresh sales and HR systems
Strengthen beer products
- Expand Super Dry fans
- Establish Maru F beer
- Dry Crystal
Inspire
innovation
ASAHI BREWERIES.LTD.
Sustainable
profit growth
Expand investment
in new value for the future
Expand High-value,smart category
- New High-value brands
- New smart brands
- Expand awareness, affinity toward smart drinking
Increased
profitability, greater investment capacity 9
More and more exciting, Asahi Beer
2024 Business Direction
Spark customer anticipation Pursue new, unique value
Strategy 1 | Strategy 2 |
E n h a n c e v a l u e | Carve new |
o f e x i s t i n g | markets and |
b u s i n e s s e s | new value |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Asahi Group Holdings Ltd. published this content on 19 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 March 2024 04:14:01 UTC.
