MKT 201
Case Study #1
Mountain Man Beer Company (MMBC)’s representative beer: Mountain Man Lager, is made based on unique and old family recipe. The target of Mountain Man Lager is old males who are working class, so called blue collar. The taste is bitter, and in contains higher alcohol than other brands. Mountain Man Lager was priced $2.25 for a 12-ounce of draft beer in a bar and $4.99 for a six-pack in a retail store. It was sold at the similar price range which premium domestic brands had, so it is quiet affordable to blue collar consumers. Also, they enjoyed Mountain Man Lager at off-premise location. This tendency reflects that a relationship between target consumers and price range because the company’s target consumers have mid-to-low income, so they tend not to spend a lot of money for alcohol. Working class males in East Central region recognizes Mountain Man lager as one of high quality beer brands. For this reason, the grand loyalty has formed strongly among them. One thing distinguishable about Mountain Man Lager is the company has directly trains its sales force. Through direct training, the company could …show more content…
Through appear of new line, the company extends their market to a new segment which involves in younger drinkers. Also, profits from a light beer could be used to cover a profit loss from lager sales since light beer consumption has increased. In the contrast, a light beer might hurt existing brand equity. An typical image of MMBC has represented by strong lager for older working class. However, a presence of light beer might dilute a strong brand image. Also, a light beer needs more costs for marketing. Lager has relied on “grass root” marketing, so the company doesn’t need to set special budget for marketing. On the other hand, competition among light beer brands is intense, so the company needs to spend more money to promote its new