Most beer companies have expanded their product lines to contain more than their flagship brands, except MMBC. It ought to amaze no one that West Virginia is beer nation. In addition, he is hoping an effective launch of Mountain Man Light in the regional on-premise places will increase the delayed sales of Mountain Man Lager.
Introducing a light beer would increase revenue. Get Full Essay Get access to this section to get all help you need with your essay and educational issues. MM light will never achieve the volume of larger beer brands. Brand plays a key role in the beer-purchasing process, along with taste, price, special occasion, brand image, authenticity, and tradition.
This age group is expected to grow by almost four million by Changes in Beer volume were driven primarily by changes in consumer segment and not by the economic downturns.
Yet, the price of the light will still be the same as the lager. Mountain Man is very well-known by the younger beer drinkers, however, they tend to buy and consume in quantity; the Mountain Man Lager is not on their top preference, along with other lagers and full-flavor beers.
MMBC has high brand equity. Launching a MM Light new product an expensive endeavor for a small company. Craft brewers account for 1.
Bringing in a light beer can bring more sales to restaurants and bars since most young drinkers drink there.
Not lose sight of its loyal and core customer. Therefore, beer sales in general are declining. Their current customer segment is a demographic that is aging rapidly, you can expect a shrink in sales.
Limited advertising and other budget resources to compete with large, well-established breweries 4. There is always a way to appeal to a younger crowd, Mountain Man needs to find the window of opportunity and take those consumers. While Mountain Man may keep its existing customer base satisfied, that customer base is being replaced in the coming years.
Mountain Man Lager is packaged in a brown bottle with its initial label style of a group of coal miners on the front. If cannibalization is inevitable, the lower percentage of cannibalization is the best option, it yields a higher contribution.
A few cons could be losing brand loyalty amongst the older generation, losing sales of the Mountain Man Lager due to cannibalization, and a lower contribution margin.
MMBC does not want to lose any brand equity by introducing a light beer. Mainly for its quality, smoothness, water content percentage, bitter taste, and alcohol percentage and that will help the light beer sales because new users will associate the brand name and quality with the product.
SinceUS per capita beer consumption declined by 2. Chris Prangel needs to decide if MMBC should introduce a new product, Mountain Man Light, due to rising popularity of light beer among young consumers. Will not experience any cannibalization.
In response to the introduction of a light beer by Mountain Man, it was the man in his fifties and early thirties that found it to be absurd. MMBC doesnt want to alienate its established customer base and harm their brand. A premier membership is required to view the full essay.
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. He utilized an old household brew dish that appeared to suit completely with the durability of the area; it is made with unusual kinds of Bavarian hops and barley and has a strong bitter taste that sets it apart from its rivals.
The beer industry can be considered a monopoly since large national brewers maintain economies of scale in brewing, better distribution tactics, spend heavily on advertisement, and create barriers of entry for other smaller brands.
MMBC needs to take advantage of the potential. Light beer was a newer, fast growing and the only beer category demonstrating consistent growth in on premise locations: Per capita beer consumption is declining by 2.
Light beer sales will be profitable within 2 years. While the light beer market would continue to grow, Mountain Man Beer would be at risk of fading away from public conscience and due to low visibility among newer, younger consumers.
Alternatives and Evaluation Alternative 1: This market segment is projected to increase in size while the premium segment that Mountain Man operates has reached maturity in its life cycle.
Currently, MMBC can afford the line extension. Will not erode sales of the core brand, Mountain Man Lager.Mountain Man Brewing Company Executive Summary MBA Brand Management Mountain Man Brewing Company (MMBC), a regional family owned brewery, is experiencing a drop in revenue, first time in its 80 year old history.
Mountain Man Brewing Business Case The function of this case research study is to check out the ramifications for broadening the items used by Mountain Man Brewing Business (MMBC) from one item, Mountain Man Lager, to including a.
Published: Mon, 5 Dec With recent declining sales for Mountain Man Beer Company (MMBC), Chris Prangel is considering launching Mountain Man Light as a brand extension aligned with changes in beer drinkers’ preferences.
Case Analysis Mountain Man Brewing Company Case Analysis Mountain Man Brewing Company Executive Summary Started in the year by Guntar Prangel Mountain Man Brewing Company (MMBC) was a well-entrenched company in the East Central US by Mountain Man is the only brewing company in its region and amongst the major beer companies that has not expanded its product line.
4. MMBC will need to sell 65, of barrels to break-even, which is a realistic capability for the brewing company. Mountain Man Brewing Company Case Summary Case Study Help They’re shot down since they method, though, and realize that encompassing the ship is an enormous Incorporate foundation, inside of which the Borealis is.Download