Mountain Man Brewing Company Case Study
Dear Chris Prangel,
Regarding whether Mountain Man Brewing Company should introduce Mountain Man Light beer to their product line I think it should. Mountain Man has customers who are loyal to it their original product, and I don’t think the addition of a new product would affect this loyalty if introduced in the right way.
Marketing Mountain Man Light will be where MMBC could preserve the brand name of Mountain Man Lager. Separating the two beverages consistently in the ad campaign in ways such as:
* Remind customers of the Original Mountain Man Lager in all Mountain Man Light ads. * Make no changes to the Mountain Man Lager ads, in order to keep from worrying customers that the recipe has been changed. * Market the new
Mountain Man Light in a way that it is highly targeted to the young light beer drinking crowd, the more you can avoid advertising to the original Mountain Man Lager customers the better.
According to the numbers on the excel sheet MMBC will have sell 160,246 barrels of Mountain Man Light. Looking at the sales numbers for light beer in MMBC’s region I think Mountain Man Light would exceed this break even point creating a boost in revenue for MMBC.
* In 2005 18,744,303 barrels of Light beer were consumed regionally * That is more than double that of premium beer where Mountain Man Lager competes * The leading light beer manufacturer is Bud Light, with 32.9% of the Domestic market * This shows me that light beer drinkers are less likely to be brand loyal considering Budweiser owns around half the market share in the premium market.
I think for MMBC hitting 160,246 barrels of Mountain Man Light should not be a worry, and if handled in the right way it will not lose more of it’s Mountain Man Lager customers than it has in the past. I think MMBC will be happy with the addition of Mountain Man Light, and their customers will be as well.
Regards,
Doug Noble
Regarding whether Mountain Man Brewing Company should introduce Mountain Man Light beer to their product line I think it should. Mountain Man has customers who are loyal to it their original product, and I don’t think the addition of a new product would affect this loyalty if introduced in the right way.
Marketing Mountain Man Light will be where MMBC could preserve the brand name of Mountain Man Lager. Separating the two beverages consistently in the ad campaign in ways such as:
* Remind customers of the Original Mountain Man Lager in all Mountain Man Light ads. * Make no changes to the Mountain Man Lager ads, in order to keep from worrying customers that the recipe has been changed. * Market the new
Mountain Man Light in a way that it is highly targeted to the young light beer drinking crowd, the more you can avoid advertising to the original Mountain Man Lager customers the better.
According to the numbers on the excel sheet MMBC will have sell 160,246 barrels of Mountain Man Light. Looking at the sales numbers for light beer in MMBC’s region I think Mountain Man Light would exceed this break even point creating a boost in revenue for MMBC.
* In 2005 18,744,303 barrels of Light beer were consumed regionally * That is more than double that of premium beer where Mountain Man Lager competes * The leading light beer manufacturer is Bud Light, with 32.9% of the Domestic market * This shows me that light beer drinkers are less likely to be brand loyal considering Budweiser owns around half the market share in the premium market.
I think for MMBC hitting 160,246 barrels of Mountain Man Light should not be a worry, and if handled in the right way it will not lose more of it’s Mountain Man Lager customers than it has in the past. I think MMBC will be happy with the addition of Mountain Man Light, and their customers will be as well.
Regards,
Doug Noble