6 is mountain man light feasible for mmbc
What market share will Mountain Man Light have to obtain to break even in two years? If the product was introduced by some other names, there would be neither brand dilution nor cannibalization, but the company would have to invest more on advertising and something else.
How to cite this page Choose cite format:. It is imperative that MMBC market its extended product line to customers with the goal of taking advantage of its attention to quality and its niche hold in regional beer brewing.
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Chris is concerned if he could reposition the brand to drive sales of Mountain Man Light to young people without eroding the core brand equity of Mountain Man Lager MM. Chris Prangel, a recent MBA graduate, had returned home a year earlier to manage the marketing operations of the Mountain Man Beer Company MMBC , a family-owned business he stood to inherit in five years, when his father, Oscar Prangel, the president and owner, retired. It is important to consider, however, that extending the product line does not necessary equate to MM Lager cannibalization. As mentioned before, the very strong brand equity has made MMBC stand out as a brewery that has experienced customer loyalty for successive generations. East Central Region. Mountain Man brand represents all blue-collar workers across the United States. Based on 18,, barrels of light beer sold in in the East Central Region, a market share of 0.
Distributors were discriminating about which smaller brands they would carry, and the percentage of new consumers by age group was continuing to decrease. Instead, they pursue their own style of marketing, chiefly with a trained sales force.
In addition, the average consumer is becoming much more health conscious and has made changes in their preference of alcoholic beverage segment. Companies cannot afford to absorb the added expenditures and therefore pass them on to the consumer whom tends to buy less as prices increase; these increases are hitting their pockets on the home front as well.
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The rate at which MMBC was building new consumers was only going to replace a fraction of their current buyers. The new generation drinkers preferred light beer. Most of these males are blue-collar, hardworking males. The core age group for light beer drinkers is 44 which extends below the current core age group of MM Lager men over the age of See Appendices 1 and 2 for sales declining Mountain Man was a local market leader and distributed its lager in several states outside West Virginia. The chance that the MM Lager decline rate will double is very low given the fact that the MM lager brand has a great awareness and loyalty on the market. It is also possible that cannibalization could be minimal because often this type of product line expansion helps secure additional shelf-space. Nevertheless there are marketing tools like brand tracking which provide visibility of brand equity and brand performances in a day-to-day basis facilitating decision-making during the execution of the marketing programme. What distinguishes it from competitors?
Fortunately for MMBC, its strong brand equity makes it possible to leverage the brand to expand to new products. As a result, consumers, specially the younger generation have acquired taste If MMBC were to wait a few years, there might not be any profit to pay for a line extension.
MMBC could generate increased turns at registers without having the deep pockets of their competitors.
What are the options in terms of actions and what outcomes need to be enabled? They could also choose to leverage their brand equity through co-branding, licensing and franchising.
6 is mountain man light feasible for mmbc
Although it is a regional brewer, it has superb name recognition. Also a brewer with a broad product offering was seen as a more attractive prospect to consumers. The legacy of the company is its main distinguishing trait from its competitors. Given the current state of the beer industry, it is reasonable to project that the rate of sales decline will continue to accelerate in the future. Currently, MMBC can afford the line extension. Because 9. Yes, the market is currently trending towards light beers and if MMBC does not yield to this signal, it will be left in the past as its market share and gross margins keep on shrinking. How to cite this page Choose cite format:. What is the current situation? See Appendix 9. Mountain Man Case Study What enabled MMBC to create such a strong brand? Instead, they pursue their own style of marketing, chiefly with a trained sales force. Additionally, the number of barrels of MM Lager sold in was approximately ,
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