Mountain Man Brewing
Assignment for Week 9
DESCRIPTION
Chris Prangel, a recent MBA graduate, has returned home to West Virginia to manage the marketing operations of the Mountain Man Beer Company, a family-owned business he stands to inherit in five years. Mountain Man brews just one beer, Mountain Man Lager, also known as "West Virginia 's beer" and popular among blue-collar workers. Due to changes in beer drinkers ' taste preferences, the company is now experiencing declining sales for the first time in its history. In response, Chris wants to launch Mountain Man Light, a "light beer" formulation of Mountain Man Lager, in the hope of attracting younger drinkers to the brand. However, he encounters resistance from senior managers. Mountain Man Lager 's brand equity is a key asset for Mountain Man Brewing Company. The question is whether Mountain Man Light will enhance it, detract from it, or irreversibly damage it.
Learning Objective:
To explore brand equity: its creation and using brands as platforms for growth; the risks and benefits of a product line extension (including congruent vs. incongruent extensions) using an existing brand name; and the concepts of cannibalization and brand alienation. To practice marginal analysis, breakeven analysis, net present value (NPV) analysis, and sensitivity analysis, emphasizing the difficulty in choosing between qualitative and quantitative information in making key strategic decisions.
Subjects Covered:
Brand equity; Brand management; Breakeven analysis; Consumer marketing; Demographics; Forecasting; Margins; Marketing; Metrics; Present value; Product differentiation; Quantitative analysis
Setting:
* Geographic: West Virginia * Industry: Alcoholic beverages
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
DESCRIPTION
Chris Prangel, a recent MBA graduate, has returned home to West Virginia to manage the marketing operations of the Mountain Man Beer Company, a family-owned business he stands to inherit in five years. Mountain Man brews just one beer, Mountain Man Lager, also known as "West Virginia 's beer" and popular among blue-collar workers. Due to changes in beer drinkers ' taste preferences, the company is now experiencing declining sales for the first time in its history. In response, Chris wants to launch Mountain Man Light, a "light beer" formulation of Mountain Man Lager, in the hope of attracting younger drinkers to the brand. However, he encounters resistance from senior managers. Mountain Man Lager 's brand equity is a key asset for Mountain Man Brewing Company. The question is whether Mountain Man Light will enhance it, detract from it, or irreversibly damage it.
Learning Objective:
To explore brand equity: its creation and using brands as platforms for growth; the risks and benefits of a product line extension (including congruent vs. incongruent extensions) using an existing brand name; and the concepts of cannibalization and brand alienation. To practice marginal analysis, breakeven analysis, net present value (NPV) analysis, and sensitivity analysis, emphasizing the difficulty in choosing between qualitative and quantitative information in making key strategic decisions.
Subjects Covered:
Brand equity; Brand management; Breakeven analysis; Consumer marketing; Demographics; Forecasting; Margins; Marketing; Metrics; Present value; Product differentiation; Quantitative analysis
Setting:
* Geographic: West Virginia * Industry: Alcoholic beverages
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