Mountain Man Brewing
Mountain Man Brewing
BADM 5400
10/16/2013
1. What is Chris considering doing and what factors will he have to align to be successful? What goal should MMBC (Chris) have?
Chris is not happy about the declining sales that Mountain Man Beer Company (MMBC) is beginning to witness for the first time in their history. He wants to reverse the situation and keep the brand a regional leader in the U.S. East Central Region. He would like to launch Mountain Light beer with the hopes of attracting younger drinkers to the brand, yet still keep the brand equity that is better suited to older beer consumers, which represents the core customer value for the company. He is also trying to avoid product cannibalism between the core product, West Virginia’s beer, and the newly introduced product by observing various participants from different customer segments in the market.
Chris should have a goal to extend the company product from the “lager beer” to an extension product “light beer” to serve as a provision for the light beer sales in the United States that has been growing at a compound rate of 4% to stop the company decline. There should also be a good marketing plan when launching the product that is expected to incorporate both new and old products, thereby increasing brand equity and revenue. This will cover costs for marketing, research and development.
2. What has made MMBC successful? What distinguishes it from competitors?
One of the key factors to the success of Mountain Man Lager was the brand awareness created among blue-collar consumers. The brand was so well known in the East Central Region that research studies showed it was as recognizable among working class men as Chevrolet and John Deere. It was also perceived to have high quality. But one of the main distinguishing factors for this company’s success was the history and tradition behind the lager and the loyalty that history created. Men who had watched their fathers and
BADM 5400
10/16/2013
1. What is Chris considering doing and what factors will he have to align to be successful? What goal should MMBC (Chris) have?
Chris is not happy about the declining sales that Mountain Man Beer Company (MMBC) is beginning to witness for the first time in their history. He wants to reverse the situation and keep the brand a regional leader in the U.S. East Central Region. He would like to launch Mountain Light beer with the hopes of attracting younger drinkers to the brand, yet still keep the brand equity that is better suited to older beer consumers, which represents the core customer value for the company. He is also trying to avoid product cannibalism between the core product, West Virginia’s beer, and the newly introduced product by observing various participants from different customer segments in the market.
Chris should have a goal to extend the company product from the “lager beer” to an extension product “light beer” to serve as a provision for the light beer sales in the United States that has been growing at a compound rate of 4% to stop the company decline. There should also be a good marketing plan when launching the product that is expected to incorporate both new and old products, thereby increasing brand equity and revenue. This will cover costs for marketing, research and development.
2. What has made MMBC successful? What distinguishes it from competitors?
One of the key factors to the success of Mountain Man Lager was the brand awareness created among blue-collar consumers. The brand was so well known in the East Central Region that research studies showed it was as recognizable among working class men as Chevrolet and John Deere. It was also perceived to have high quality. But one of the main distinguishing factors for this company’s success was the history and tradition behind the lager and the loyalty that history created. Men who had watched their fathers and