Should MMBC introduce a light beer? Promotion Bar mats to be distributed to bars and retail outlets carrying light brew and Mountain Man lager. The following cannibalization analysis provides added detail to support this assertion.
Need to target locations that are frequent by the young adults.
Mountain Man Brewing Company Case Study Essay
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. A segment of the population was still interested in MMBC, but that segment, while loyal, was aging.
What are methods adopted by MMBC to improve their sales in future? This allowed for an aura of authenticity distinguishing it as higher quality than Miller and Budweiser, for instance, all while gaining incremental revenues from the craft brewers like Sam Adams.
Fortunately for MMBC, its strong brand equity makes it possible to leverage the brand to expand to new products.
Mountain Man Brewing Company | Beer | Alcoholic Drinks
Producing a light beer also presents an opportunity for MMBC capture part of the Improper utilization of funds in advertising Lack of financial resources to compete in the light beer advertising market Opportunities 2. MM Light needs to set itself apart from the light beer crowd with quality ingredients and complement the bitterness of MM Lager by delivering a rich distinct flavor of its own.
Currently, MM Lager has a 4-to-1 male-to-female ratio while the light beer category ratio is roughly 3-to This will directly impact the sales of MM Lager to some degree. Promotion Bar mats to be distributed to bars and retail outlets carrying light brew and Mountain Man lager.
This foundational set of data allowed for a series of critical assumptions to be logically made Exhibit 2. This result is also good, because the chapter 2 thesis sample pdf will start earning additional profit from the third year. MMBC has the chance to tap into a large sales opportunity. It is important to consider, however, that extending the product line does not necessary equate to MM Lager cannibalization.
Beer is very high in calories; for instance, as compared to wine or spirits and decreasing caloric intake has been one of those fairly recent health conscious changes being made. How to cite this page Choose cite format: MM Light will add additional importance of newspaper essay 200 words expenditures for plant and equipment upgrades and could potentially hurt sales of the lager as brand loyalty may become threatened.
This strategy, based on prior successes throughout the U.
Team Risky Business Mountain Man Brewing Company Case Analysis
Oscar Pragnel retired president and owner and the business stayed focused on maintaining the quality and serving a specific market niche building brand equity among blue-collar, middle-income and below workers. MMBC must produce a light beer product in order to remain a competitive player in the beer industry.
Moreover, one of the main assumptions that the company will gain the share only among the domestic producers of the light and premium beer makes the project perspectives even brighter.
The introduction of light beer to MMBC product portfolio represents a classic adapt-or-die scenario. Although it is a regional brewer, it has superb name recognition. Observe competitors pricing strategy and carry out market research to determine the optimal pricing.
InMMBC was still profitable and could afford to take on mountain man beer case study analysis costs of extending its product line; however, each year that the company waited to do so jeopardized its ability to afford new costs. In all three cases, as the revenue from MM Lager decreases each year, that loss is offset by the revenue gained from MM Light.
Mountain Man Brewing Company: Case Analysis
The final assumption is that the Light Beer market growth rate is only 0. We strongly advice launching MM Light Beer, it will be profitable under any case! The concern is that a light brew would alienate the core customer base and erode the attributes that make MM a profitable company. Use of bold and vibrant colors to attract attention of the customers The bottle should use a lighter non profit program coordinator cover letter such as light mountain man beer case study analysis to differentiate from the dark brown bottles of Mountain Man lager.
Whether the MMBC should launch the new brand in the market?
Mountain Man Brewing Company : Bringing The Brand To Light
What is required is a strategy founded on the principle that MM Light should have a new product name and logo to differentiate it from MM Lager. 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. Lastly, we were provided with variable cost per unit data: Should MMBC introduce a light beer?
It is important to price Mountain light brew not too low in order to break even quickly and not to price it too summer problem solving ks2 for fear of low sales. For almost 50 years it held the top market share for lagers of West Virginia in the majority of the states where it was distributed distinguishing them in prime position among competitors.
MM Light Marketing Strategies The issue of marketing and advertising the new MM Light product was analyzed using industry data from along with an aggressive marketing plan for the first six months of production.
BRINGING THE BRAND TO LIGHT
The following cannibalization analysis provides added detail to support this assertion. We also assume that the YoY decline rate is still the same and the growth rate in the light beer market is slightly lower at 0. Label should portray a fresh and young image since the target segment is young adults.
The highest growth segment in the beer industry is light beer and Mountain Man Beer would need to diversify its product discuss the major contents of a research proposal in order to compensate for a potential decline in lager sales in the future.
Also a brewer with a broad product offering was seen as a more attractive prospect to consumers.
- The introduction of light beer to MMBC product portfolio represents a classic adapt-or-die scenario.
- Photo essay about early pregnancy business plan dictionary meaning, sample thesis title for senior high school students
- Personal statement essay questions first dissertation death of a salesman willy american dream essay
- Business plan dune brasserie case study about problem child
SinceU. This decision is based on financial projections of mountain man beer case study analysis profitability. As mentioned before, the very mountain man beer case study analysis brand equity has made MMBC stand out as a brewery that has experienced customer loyalty for successive generations.
Mountain Man Brewing Company Case Study Analysis | Brand | Beer
Instead, they pursue their own style of marketing, chiefly with a trained sales force. The rate at which MMBC was building new consumers was only going to replace a fraction of their current buyers. Reach out to younger demographic Increase lifetime customer value Threats: While the light beer market would discuss the major contents of a research proposal to grow, Mountain Man Beer would be at risk of fading away from public conscience and due to low visibility among newer, younger consumers.
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.
Mountain Man Beer Company (Case Study Analysis)
It would be effective to entice younger beer drinkers to emotionally and intellectually support the product while catering to their general taste for light beer. The legacy of the company is its main distinguishing trait from its competitors. As ofMMBC was the only major regional beer company to not expand beyond its flagship lager product. ByMountain Man revenues discuss the major contents of a research proposal have declined by 9.
They rely heavily on broadcasting market as well product diversification to create barriers of entry for other brands Company: In addition, the average consumer is becoming much more health conscious and has made changes in their preference of alcoholic beverage segment.
How to cite this page
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. Both industry and company data were initially provided to set the groundwork for these calculations Exhibit 2. 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.
MMBC has also strategically positioned itself from a marketing perspective as a preferred alternative to large breweries due to its brand and business model. Private hospital business plan MMBC did not branch out, they are in jeopardy of being dropped from sales channels in their home territory. Beer lovers are sticking with their choice of libation; however, substituting a light version of their favorite brand.