Simulation Modeling the Mechanism of Management Policies to Business Performance for Period Emerging New Product Category in Beer Brewery Industry

Abstract

In the beer brewery industry, KIRIN has been having huge share for many years, but ASAHI has dramatically improved its business performance by launching dry-beer product as a new product category. In this article, we develop a dynamic model which can explains the impact of management policies on business performance during new product category spreading. Applying system dynamics, we modeled three mechanisms as follows: (1) impact of promotion for copycat product on competitors' product in new category; (2) dispersion of investment by existence of dominant product; (3) impact of increasing production capability on inventory amount and product freshness. Moreover, the developed model was validated by comparing the transition of simulation results and actual business performance.