Brazil Kirin intends to keep prices of Schin to attract consumers

Brazil the Brazilian subsidiary of Japanese Kirin, Kirin, announced on Monday a change in business strategy of Schin, main beer brand of the company. In addition to changes in packaging and adoption of a new subscription to the marketing campaign, the company also reported that will keep prices of beer, as a strategy to attract more consumers.
According to the Brazilian Association of Beer (CervBrasil), inflation was 4.5% beer in January to August this year. The prices of beer out of households rose by 7.1% in the year, while the price of the product sold for home consumption presents 0.2% retraction. Maintenance can make prices more attractive beer against rivals produced by Ambev and the Grupo Petrópolis, but can result in reduction in the profit margin of the company.
The Brazil Kirin also announced the release of "the way that people like" as part of the strategy to bring the brand Schin consumers. According to Marcio Avolio, Schin, marketing manager, the change was made on the basis of market studies, which showed a great interest of the consumer for a communication that respects their particularities. "Schin is a beer that was born the way that people like. It's light, tasty and affordable. Democratic and also for that conversation with people in different ways from the North to the South of the country, "he said. In addition to the new slogan, the company changed the packaging of the Schin, which are white. The new packaging products are expected to reach retail in October, according to the company.
The Kirin Brazil has made a series of adjustments in the operation to improve performance in the country. The company fired about 250 employees, or 2 percent of its total workforce (of 11 thousand people) in the first half and reshaped the line of soda Pop, who now take Schin the brand Alive Schin. This month, company also outsourced information technology area for the company, as part of efforts to reduce costs.
The Kirin Brazil showed results below the market average in the first half. From January to June, recorded 18.7% fall in sales in Brazil, to 71.8 billion yen (us $ 1.78 billion), according to the Kirin Group. The operating loss of the Brazilian company was r $ 109,3 million, 12.8% loss greater than that recorded in the first half of 2014.
On behalf of the result in the first half, the Kirin reduced projection for performance in Brazil in 2015. The Group expects a fall of 17.7% in revenue in the year. The previous forecast was a retraction of 9.9%. The Group predicts zero operating profit in Brazil in the year. The previous forecast was for a profit of R $ 35,9 million.