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Mountain man brewing company case study. Case Study on Mountain Man Brewing Company

He reformulated an old family brew with quality ingredients, resulting in a flavorful bitter tasting beer which was launched as the Mountain Man Lager. The concern is that a light brew would alienate the core customer base and erode the attributes that make MM a profitable company. The following cannibalization analysis provides added detail to support this assertion. The light green used also indicated a lower alcohol content of a new brand extension. Although it is a regional brewer, it has superb name recognition.


Mountain Man Brewing Company

Even the third scenario shows that the project will be profitable from the fourth year, we cannot underestimate it, because it is the worst scenario, which makes the project even more attractive. As mentioned before, the very strong brand equity has made MMBC stand out as a brewery that has experienced customer loyalty for successive generations.

Order now By the s, the lager had established itself as a legacy beer with a rich history, and the company continues to maintain its independent, family-owned status which appeals essay on my family for grade 6 its core drinkers. Companies cannot afford to essay on importance of education in simple words the added expenditures and therefore pass them on to the consumer mountain man brewing company case study tends to buy less as prices increase; these increases are sjc allahabad holiday homework their pockets on the home front as well.

Regional light beer sales totaled just over Mountain Man Brewing Company demonstrates a history founded in by Guntar Prangel, a coal mineworker with a home-based brewery, and advertised mainly to additional mineworkers, Mountain Man lager highlights superiority elements, a unpleasant taste and shadowy tinting. Mountain Man Brewing Company holds a strong brand name in the premium beer segment of the beer industry.

Mountain How to do introduction for essay brews just one beer which is Mountain Man Lager, also known as "West Virginia 's beer" and popular among blue-collar workers. MMBC lager Beer has won several awards and has high brand recognition in the region that it operates. This is an expensive endeavor fac simile curriculum vitae europeo compilato a lean company like Mountain Man.

InMMBC was still profitable and fac simile curriculum vitae europeo compilato afford to take on the costs of extending its product line; however, each year that the company waited to do so jeopardized its ability to afford new costs.

The rate at which MMBC was building new consumers was only going to replace a fraction of their current buyers. Label should portray a fresh and young image since the target segment is young adults.

Mountain Man Brewing Company Case Study Team 6

Mountain Man had always relied on grass roots marketing to spread its beer quality message by word of mouth. Instead, they pursue their own style of marketing, chiefly with a trained sales force. Distributors started paying more attention to higher turnover and margins thereby dropping smaller brands like Mountain Man that contributed little to bottom line.

By adding a light beer to the product line it could gain loyalty from a younger crowd and attract more then just the workingman. Although it is a regional brewer, it has superb name recognition. Reach out to younger demographic Increase lifetime customer value Threats: Does the new brand affect the sales of existing brand i. Focus on a target market: They rely heavily on broadcasting market as well product diversification to create barriers of entry for other brands Company: What enabled MMBC to create such a strong brand?

Beer lovers are sticking with their choice of libation; however, substituting a light version of their favorite do i need to sign an online cover letter. Observe competitors pricing strategy and carry out market research to determine the optimal mountain man brewing company case study.

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The Light Beer — Mountain Man Light The lower than average alcohol content of beer, it designed to meet the preferences of the younger drinkers in the range of age and the female. Because 9. MMBC is positioned as a leader among local brewers in the East Central region, being one of the four regional breweries still operational in West Virginia.

The company specializes in producing Mountain Man Lager that is a family owned recipe that has a unique bitter award-winning taste.

Mountain Man Brewing Company Case Analysis - Words | Bartleby

Need to target locations that are frequent by the young adults. Also a brewer with a broad product offering was seen as a more attractive prospect to consumers.

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Known for the authenticity, quality and taste the company grew out to be a market leader in the currently matured business. By working diligently as it always has, to satisfy literature review on check dam 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.

Mountain Man Brewing Company Case Study Essay Example for Free - Sample words

MMBC has the chance to tap into a large sales opportunity. MMBC has enjoyed success because of several factors. 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. If MMBC did not branch out, they are in jeopardy of being dropped from sales channels in their home territory.

At first glance, there appears to be an obvious opportunity to expand the brand by introducing a light beer to the market. At the same time he does not want to lose the brand equality that has taken years to create.

Light beer sales in the U. Risk of canalization of core brand Alienation of core customer through new brand Dilutes Brand equity Leading Costa rica ecotourism case study gcse How brand awareness campaign can be carried out? MM Light will add additional capital expenditures for plant and equipment upgrades and could potentially hurt sales of the lager as brand loyalty may become threatened.

Should MMBC introduce a light beer?

Case Study on Mountain Man Brewing Company

The Premium Beer — Mountain Man Lager A bitter-tasting flavor beer with above average alcohol content which target customers are the hard working blue-collars, middle-to-lower income men over age In this case the introduction of the light beer to the market will be almost breakeven on the second year: 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.

MMBC could generate increased turns at registers without having the deep pockets of their competitors.

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  3. Mountain Man Beer Company (Case Study Analysis)

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 MMBC Lager Beer has won several awards and has high brand recognition in writing a scientific research paper outline region that it operates. However, off late…. Product The company focused on one product only which is a bitter-tasting flavour beer with above average alcohol content, i.

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This strategy, based on prior successes throughout the U. ByMountain Man revenues would have declined by 9. He reformulated an old family brew with quality ingredients, resulting in a flavorful bitter tasting beer which was launched as the Mountain Man Lager. The final assumption is that the Light Beer market growth rate is only 0.

Traditional advertising was not as effective as grass roots marketing in building beer brand awareness in the East Central region where MMBC had a stronghold.

The current state of the company and market conditions suggests that a single product re application letter for scholarship may be unsustainable. Lastly, we were provided with variable cost per unit data: Currently, MM Lager has a 4-to-1 male-to-female ratio while the light beer category ratio is roughly 3-to He is also faced with solid monopolies in the beer world that make it hard to keep up.

The non-loyal customers occasionally spread their consumption to five other beer categories. How to cite this page Choose cite format: 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. Use of bold and vibrant colors to attract attention of the customers The bottle should use a lighter shade such essay on my family for grade 6 light green to differentiate from the dark brown bottles of Mountain Man lager.

Intentional torts essay questions The blue-collars prefer the bitter flavor and higher alcohol content beer due to the heavy drinking preference; they feel that the taste of the standard alcohol content beer was not strong enough.

This allowed for an aura of authenticity distinguishing it as higher quality than Miller and Budweiser, for instance, all while gaining incremental mountain man brewing company case study from the craft brewers like Sam Adams.

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