Focus on a target market: blue-collar male workers. It is important to price Mountain light brew not too low in order to break even quickly and not to price it too high for fear of low sales.
By working diligently as it always has, to satisfy its new customer base, Mountain Man Light has a great potential to grow based on the reputation of the company as well as the growth in the market itself.
Chris can go ahead and launch new Light Beer. However, to introduce Mountain Man Light, the company would have to consider a possible cannibalization of Mountain Man Lager by Mountain Man Light that would end up hurting the sales of its core brand. Does the new brand affect the sales of existing brand i.
S per capita beer consumption had declined by 2. The final assumption is that the Light Beer market growth rate is only 0. The highest growth segment in the beer industry is light beer and Mountain Man Beer would need to diversify its product portfolio in order to compensate for a potential decline in lager sales in the future.
This is an expensive endeavor for a lean company like Mountain Man.
The non-loyal customers occasionally spread their consumption to five other beer categories. Distributors started paying more attention to higher turnover and margins thereby dropping smaller brands like Mountain Man that contributed little to bottom line.