Mountain Man Beer
MOUNTAIN MAN BREWING CASE WRITE-UP
Problem Statement:
Mountain Man Brewing (MMB) has been successful with only one beer, Mountain Man Lager, but consumption has decreased. The decrease in sales for this beer has caused a decrease in profits, since it is their only product. Mountain Man needs to consider a change in their positioning strategy to increase sales and profits to keep the business successful.
Alternative #1: Create, promote and sell Mountain Man Lager Light
Pros: It gives them the use of their name that is already well known and liked in their current market area. It creates a light beer for the younger target market that drinks light beers. Cons: It could result in customers switching from regular to light, which would decrease sales of the Lager even more to cannibalize that product. It could also make customers disappointed with them following the trends. It would not even put a dent in the competition for the major name brands. They risk losing their current reputation for being unique with a good stand-alone product, which may also push dedicated customers away.
Alternative #2: Create, promote and sell a new light beer, but use a different name
Pros: It won’t take away from the name of the Mountain Man Lager. It still gives them a product that is more common for a new market of younger drinkers. It gives them the ability to purse the larger market for light beers that has greatly grown.
Cons: It may still take away from their own Lager beer with current customers switching to the light beer. It still would hardly put a dent in the power of the major competitors, if at all, so it is not likely to pull away a large amount of their competitors’ sales to their own product.
Alternative #3: Keep only the Lager beer and broaden the target market into more States
Pros: It keeps their product focus on their successful beer and keeps them unique. It keeps them from having to create something new and start from scratch
Problem Statement:
Mountain Man Brewing (MMB) has been successful with only one beer, Mountain Man Lager, but consumption has decreased. The decrease in sales for this beer has caused a decrease in profits, since it is their only product. Mountain Man needs to consider a change in their positioning strategy to increase sales and profits to keep the business successful.
Alternative #1: Create, promote and sell Mountain Man Lager Light
Pros: It gives them the use of their name that is already well known and liked in their current market area. It creates a light beer for the younger target market that drinks light beers. Cons: It could result in customers switching from regular to light, which would decrease sales of the Lager even more to cannibalize that product. It could also make customers disappointed with them following the trends. It would not even put a dent in the competition for the major name brands. They risk losing their current reputation for being unique with a good stand-alone product, which may also push dedicated customers away.
Alternative #2: Create, promote and sell a new light beer, but use a different name
Pros: It won’t take away from the name of the Mountain Man Lager. It still gives them a product that is more common for a new market of younger drinkers. It gives them the ability to purse the larger market for light beers that has greatly grown.
Cons: It may still take away from their own Lager beer with current customers switching to the light beer. It still would hardly put a dent in the power of the major competitors, if at all, so it is not likely to pull away a large amount of their competitors’ sales to their own product.
Alternative #3: Keep only the Lager beer and broaden the target market into more States
Pros: It keeps their product focus on their successful beer and keeps them unique. It keeps them from having to create something new and start from scratch