marketing
MKTG101 Marketing
Professor CHUNG Seh-Woong
Case Write-up
Mountain Man Brewing Company: Bringing the Brand to Light
Done By:
Dickson LAI Jia Hao
LIM Yi Jun
Greena NG Xin Yi
Selena SHEN Liqing
HAN Chuin Chi
Zac Douglas XU Peiwen
G7
20 February 2013
Table of Contents
1. Introduction
Due to a shift in psychographics and demographics, Mountain Man Brewing Company (MMBC) is currently facing declining sales of its flagship product - Mountain Man Lager, a premium beer popular with blue collar men above the age of 45. MMBC is facing the decision of whether to launch their own light beer in order to gain a portion of the growing market in light beers.
2. Reasons for Launching
2.1 Current Market Trend
Beer consumption in the east central region, which constitute 50.4%, has shown an increasing preference for light beer. The increase preference can be seen from its annual 4% compound increment in Light Beer for the past six years1. As a result of the trend, it has lead to the decline in consumer soughting after Mountain Beer Lager.
2.2 Opportunity
The increasing presence of young drinkers with low brand loyalty and high consumption rate is an opportunity for MMBC to penetrate into the new market. Additionally, since young drinkers spent twice as much per capita on alcoholic beverages compared to drinkers 35 years of age with a growth projection of nearly 4 million in 5 years, they make for a large untapped profitable market for MMBC. By leveraging on their current strong brand awareness among young drinkers, MMBC can further secure their positioning in the beer industry with the introduction of the light beer .
2.3 Product Cannibalism
The launch of a light beer series may result in product cannibalizing with the lager beer sales due to competition for the limited shelf space in off-premise locations. However, this problem can be circumvented through negotiations with distributors and retailers to secure additional shelf
Professor CHUNG Seh-Woong
Case Write-up
Mountain Man Brewing Company: Bringing the Brand to Light
Done By:
Dickson LAI Jia Hao
LIM Yi Jun
Greena NG Xin Yi
Selena SHEN Liqing
HAN Chuin Chi
Zac Douglas XU Peiwen
G7
20 February 2013
Table of Contents
1. Introduction
Due to a shift in psychographics and demographics, Mountain Man Brewing Company (MMBC) is currently facing declining sales of its flagship product - Mountain Man Lager, a premium beer popular with blue collar men above the age of 45. MMBC is facing the decision of whether to launch their own light beer in order to gain a portion of the growing market in light beers.
2. Reasons for Launching
2.1 Current Market Trend
Beer consumption in the east central region, which constitute 50.4%, has shown an increasing preference for light beer. The increase preference can be seen from its annual 4% compound increment in Light Beer for the past six years1. As a result of the trend, it has lead to the decline in consumer soughting after Mountain Beer Lager.
2.2 Opportunity
The increasing presence of young drinkers with low brand loyalty and high consumption rate is an opportunity for MMBC to penetrate into the new market. Additionally, since young drinkers spent twice as much per capita on alcoholic beverages compared to drinkers 35 years of age with a growth projection of nearly 4 million in 5 years, they make for a large untapped profitable market for MMBC. By leveraging on their current strong brand awareness among young drinkers, MMBC can further secure their positioning in the beer industry with the introduction of the light beer .
2.3 Product Cannibalism
The launch of a light beer series may result in product cannibalizing with the lager beer sales due to competition for the limited shelf space in off-premise locations. However, this problem can be circumvented through negotiations with distributors and retailers to secure additional shelf