Mountain Man Brewing Company Essay

Problem Definition messiness human being Brewing go with (MMBC) has enjoyed being in top locate in tribute beer member for the past fifty years and are right off facing a 2% decline in revenue whilst a change in leadership infuses revolutionary energy to bring a change in their product line. Chris Prangel, son of the retired president and owner of MMBC faces the argufy of successfully implementing a merchandise strategy to introduce a elucidate beer in a growing beer segment, as maintaining status-quo would no more be an option to sustain their brisk position in marketplace in the next five years.AnalysisStrengths mount part Brewing Company was known as the Best Beer in West Virginia because of its flavor and characteristic bitter taste additionally, it was selected as Americas Championship lager at the American Beer Championship in 2005. Also, it had held the top market position in the lager market in West Virginia for almost 50 years. As a result, set humanity succ eeded at the beer market by earning over $50 million and selling over 520,000 barrels of big money world Lager beer within the West Central region.Mountain Man had high brand awareness, and it was especially recognizable among working-class males in the eastward Central region because of its product quality, positioning, and brand equity. In order to maintain favorable relationship with its customers, Mountain Man had many branding activities. Hence, Mountain Man Brewing Company remained plasteredly in the beer market collectible to its strong brand loyalty as they capitalised on the local factor.WeaknessesMountain Man Brewing Company produced only one product, Mountain Man Lager, and distributed to only the West Central region with limited distributions. Moreover, Mountain Man targeted on only one segment, the blue-collar men who are mid-age and above. Although its ticker consumers love Mountain Man Lager, the market product preference had changed to glitter up up beer in stead of traditional beer in that respectfore, Mountain Man Lager was rated very low as a purchasing preference. Unlike many other major beer producers, Mountain Man did non have any advertisement in fact, it relied only on word of mouth. Mountain Man big businessman not have enough money to launch Mountain Man unmortgaged that follows the modern trend.OpportunityMountain Man can consider tercet possible opportunities, which ontogenys potential consumers and gain revenues. Firstly, number of jr. beer drinkers has been consistently change magnitude and expected to positively influence the growth of the profits. Secondly, If Mountain Man launches sparkle beer category, it may reach younger drinkers who both show positive attitudes towards electric discharge beer and brand awareness of Mountain Man itself. The likability of younger drinkers toward the light beer lead optimistically affect the MMBCs revenue ( Exhibit 1). Lastly, by expending product lines, product and distri butors may build stronger beneficial relationship with brewers.Threats whiz of the holy terrors Mountain Man Brewing Company faced was the declining overall beer expenditure per capita by 2.3% since 2001 in United States of America. According to the case, the declining consumption is attributed to the competition from wine and spirit-based drinks, an increase in federal excise tax, initiatives encouraging moderation and personalized responsibility, and increasing health concerns. Furthermore, categorising Distributors might also be a threat to this company because they became more cautious as they could refuse to work with low-spirited brands that have low margins and turnover. The increasing number of large breweries is also a challenge the company in the market to remain profitable little companies are put on pressure to stay in the beer market.Alternatives1. Introducing Mountain Man luminousnessIf Chris goes ahead and launches a beer less strong than the premium lager beer using Mountain Mans brand put forward as Mountain Man Light, it would result in increase in revenues as they would be entering into a growing light beer market segment and the existing brand image might attention them reduce advertising costs. However, this move will stick them lose their existing customers loyalty, along with product cannibalization, brand erosion and might not be perceived well by the existing customers as well their target customers. 2. Introducing Light Beer by some other stoolChoosing a new brand name for the light beer has a delicate edge over choosing Mountain Man Light. As discussed in the case, there is a chance of the company losing its individualism when they are in center of other light beers such as Coors Light. Creating a brand identity would be difficult as customers might not find it short to recognize yet another beer which ends with Light. In addition to the benefits in the first choice, creating a new brand name for the light beer would make sure there is no brand dilution or cannibalization. However there could be additional advertising costs and they cannot leverage the existing strong brand name.RecommendationsI would recommend to go ahead with the second alternative of not naming the light beer as Mountain Man Light and to give a different name as it targets a younger population who look for healthier beer drinking by consuming less calories while maintaining the same level of alcohol intake.Brand IdentityCreating a brand identity for a new product would be challenging. However, a growing market segment would always be on the talent scout of new products and this might work in favor to MMBC. To distinguish the light beer from other competitors they will have to come up with a inventive tag line for their beer.Target MarketBased on the stipulation statistics it appears that customers of the age group between 21 and 27 are the highest fate of people who would favor light beer. They should amend their marketi ng campaigns to suit this new target market.PromotionMMBC should concentrate on making their promotion campaigns more effective. They must promote light beer in pubs, discos and night clubs. The light beer segment is in growth stage of the product life cycle which indicates seafaring sales, increasing revenues, and growing consumers. To make full use of it an effective marketing campaign spanning across different media must be undertaken.