John Deere Case Summary
Q1. What is MMBC considering doing and what factors will have to be aligned to be successful?
MMBC is considering launching a Light version of its beer. In order to be successful, the light version needs to not taint the existing image of its main beer and appeal to the new target audience.
Q2. What had made MMBC successful? * Well-recognized brand, among the ranks of Chevrolet and John Deere * Perception of quality * Brand loyalty * Subjective attributes such as smoothness
What distinguishes it from competitors? * Distinctive bitter flavor and higher alcohol content * Image as a beer for tough working men (81% of males drink it vs. 58% standard) * Local authenticity: family-owned brewery * No other local
competitor has a beer with the same qualities as MMBC. Foreign imports suffered from lack of control over freshness, currency fluctuations, and shipping costs.
Q3. What factors enabled MMBC to create such a strong brand? * Image of toughness: strong, a “working man’s beer” * High percentage of customers (53%) solely loyal to it vs. 36% for Bud Light
Q4. What has caused MMBC’s decline in spite of its strong brand? * Retailers eliminating products with unfavorable margins or sales * Declining overall market due to competition from wine and increased health awareness * Glut of product * Core group of drinkers getting older, with difficulty capturing 21-27 segment which spent twice as much and were a growing segment *
Q5. Should MMBC introduce a light beer? Should is launch MMBC Mountain Man Light?
Yes to introduce a light beer
No to tagging on to the brand due to dilution and alienating core customers
MMBC is considering launching a Light version of its beer. In order to be successful, the light version needs to not taint the existing image of its main beer and appeal to the new target audience.
Q2. What had made MMBC successful? * Well-recognized brand, among the ranks of Chevrolet and John Deere * Perception of quality * Brand loyalty * Subjective attributes such as smoothness
What distinguishes it from competitors? * Distinctive bitter flavor and higher alcohol content * Image as a beer for tough working men (81% of males drink it vs. 58% standard) * Local authenticity: family-owned brewery * No other local
competitor has a beer with the same qualities as MMBC. Foreign imports suffered from lack of control over freshness, currency fluctuations, and shipping costs.
Q3. What factors enabled MMBC to create such a strong brand? * Image of toughness: strong, a “working man’s beer” * High percentage of customers (53%) solely loyal to it vs. 36% for Bud Light
Q4. What has caused MMBC’s decline in spite of its strong brand? * Retailers eliminating products with unfavorable margins or sales * Declining overall market due to competition from wine and increased health awareness * Glut of product * Core group of drinkers getting older, with difficulty capturing 21-27 segment which spent twice as much and were a growing segment *
Q5. Should MMBC introduce a light beer? Should is launch MMBC Mountain Man Light?
Yes to introduce a light beer
No to tagging on to the brand due to dilution and alienating core customers