1a. What is Chris considering doing and what factors will he have to align to be successful? Chris is considering the production of a light beer for Mountain Man Brewing Company as a way to compensate for the recent decline in sales and increase in the market for light beer sales. How can the production of a light beer appeal to a younger demographic. What about their light beer will be different from competitors. How much is this new product going to cost and how will he go about launching the new product. How long is it going to take before the company begins to break even and then make a profit? b. What goals should MMBC(Chris) have? Chris should find ways the increase the revenue of the company without taking away from the Mountain Man Brewing brand image or loosing its current consumers. 2. What has made MMBC successful? The company has stayed true to its core customer base. Its product focuses on quality. 2a. What is distinctive about MMBC’s products? Mountain Man Lager is produced by an independent family owned brewery producing a lager with a distinct bitter flavor. Its lager has a higher alcohol content than its competitors. It is a regional favorite. 2b.
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What is distinctive about MMBC’s customers? Mountain Man Brewing Company has a main customer base that consists of blue-collar working class males ages 45-54. The consumer of the lager are brand loyal. 2c. How is MMBC’s promotion different and effective? Traditional advertising was not used to promote its products instead the company focused on grass roots marketing as a means of advertising the brand. By using this method the brand focused on local marketing activities thus making the brand more personable to the consumer. 3. What about these enable MMBC create such as a strong brand?
These blue-collar consumers have a strong association with the brand and tend to be loyal to the company. They most likely loyal because of the image portrayed, the taste and availability of the product. Has a family owned image and has been in business since 1925 and has been sticking to its core customer base since the start of the business. 3a. What is a brand, anyway? What is brand equity? How is it created? A brand is a name, term, symbol, design or some combination of the previous that are intended to identify and differentiate the goods or services of one company from its competition.
Brand equity is an intangible asset that depends on associations made by the consumer above and beyond its objectively perceived value. Brand equity is built through 1) the initial choice of the brand elements making the brand 2) marketing activities and programs 3) leverage of secondary association that like the brand to other entities. 4. What has caused MMBC’s decline despite its strong brand? Declining sales are due to a shift in consumer preference in light beer. The market that Mountain Man Lager serves is also an aging group of customers.
If these consumers growing families and friend do not adopt Mountain Man as their beer of choice it will be hard for the company to sustain let alone grow in the market. The company also only produces one type of beer and is only distributed regionally. There are many other beverages to choose from and their lagers is only distributes regionally. The company does not have the finances to compete with major domestic competitors. There has been an increase in taxes and health concerns. 4a. Describe the market MMBC serves and the beer market in general.
The beer industry is seeing a shift to a preference in light beer consumption. The younger generation ages 21-27 consumes 27% of beer but only represents 13% of the population. This is a growing number for the industry. Mountain Man customer base is middle ages males who prefer a stronger ale not light beer which does not reflect what is going on in the market today. 4b. Describe the competition and the MMBC’s threats. Some of the main threats are MMBC’s core customer base is an aging demographic. One of the growing demographics is those ages 21-27. This group mostly prefer light beer a product they have yet to produce.
Major competitors in light beer are Anheuser Busch, Miller Brewing, and Adolf Coors, representing 74% of beer shipments in Mountain Man’s region. 4c. What is the likely future of competitive brewers? What is MMBC’s market/competitive position? Mountain Man has its own identity. It is a family owned business and its product packaging reflects the image created for its lager. The company focuses on producing a quality products and identifying the product with its consumers. Its consumers remain loyal to the product. 5. Should MMBC introduce a light beer? They should definitely introduce a light beer.
This would allow the company to gain younger consumer as well as females who are more apt to drink like beer. 5a. What are pros and cons for doing so? PROS -By introducing a light beer the company will gain a younger demographic that has yet to establish a brand loyalty. Younger consumers are also big spenders and consumer representing 27% of total beer consumption and still growing. The introduction of a light beer may also increase awareness and consumption of Mountain Man Lager. Cons- It will cost the company $4. 69 more per barrel to produce a light beer.
There is no guarantee the new product will be a success. It could possible hurt the brand name. 6. Is mountain Man Light feasible for MMBC? Mountain man light may not be the best choice for naming its light beer because its loyal customer base may fell they are straying from what the brand represented in a bwhdyu7hb bnjiw9ijm ,lokjnbaxs,ahjiuy6tresdrtgfdaAlager. Strength, rugged, quality product with a distinct taste. I would introduce a product ‘that is not your Mountain Man;s Lager but everyone’s beer of choice. 6d. Is the bugdet appropriate for the launch? Can it be reduced? The budget can be reduced.
Since the company has had success with its grass roots marketing it can do the same for a new products. Since a younger demographic is being targeted I would focus on technology as a way of getting the new product out such as by Internet ads and social media. 7. Should MMBC launch Mountain Man light? Mountain light should because the beer market has seen a grown in consumer of light beer as well as new drinkers in the age demographic 21-27 who have yet to develop a brand of choice. This product launch can be valuable to the core brand because it will have presence and people may be more apt to try its lager by knowing of its light beer. a. What other strategic options for growth does Chris have if Mountain Man Light is not launched or unsuccessful? If the Chris fails to launch a light beer or another alternative beverage the company will continue to see a decline in sales and eventually close its doors. The company definitely needs to increase its product portfolio no company will remain if its sole survival is dependant upon one thing. The company needs to branch out into other product offerings that provide the same quality and loyalty as its Mountain Man Lager.