Mountain Man Marketing Strategy

Marketing Plan for Mountain Man
Looking at ALTERNATIVES :
Recommendation ADVANTAGES DISADVANTAGES
Launch MM Light Beer – Under the Mountain Man brand name • Brand Recognition
Association with the MM brand which is reputable in the East Central region will enhance the launch of MM Light Beer (Superior Brand Recognition)

• Goes well with the youth
Light beer goes well with the young crowd and represents an untapped market of “no preference” – Prefer light beer to other categories and typically consume in quantity. This group accounts for 27% of the total beer consumption

• Less costs
Making use of the already established MM brand name will enable MM Light to cut down on advertising costs in for example establishing a new brand altogether
• Possible increase in revenue
Tapping on the light beer segment will potentially increase revenue (and reverse the decline in sales) for MM as the light beer segment accounts for 50.4% of consumption in the East Central region where MM principally competes.

In addition, light beer showed regional revenue growth of 4% annually and MM can grow it quarter of a percent each year.
• Erosion of core brand equity
Targeting a new market/entering the light beer market would mean that MM no longer only produces MM Lager catered mainly for the blue-collar middle-to-lower income men over age 45. Focus is to be placed elsewhere, and MM Lager would no longer hold the entire core brand equity of the MM Brand

• Failure to identify with MM Light
MM brand name might not go well with the light beer favoured by the young. The association with MM has always been blue-collar men aged over 45. Thus, it would be an uphill task to reposition MM as a brand of beer that appeals to the younger lot.
Brand awareness, perception of quality and brand loyalty are cornerstones of MM

• Product Cannibalisation not a distant happening
MM Light might actually “takeover” MM Lager and destroy the latter. In addition, both products might fight for display space in places of sale if MM a s a whole is not given extra space for MM Light
MM Light and MM Lager both have different target groups. As long as there is demand for both, retailer will have the incentive to give MM incremental shelf space if MM Light is high in
demand
Market MM Light Beer to the segment of 21 to 27 years old group and women • Segment of 21-27 years of age accounts for 27% of beer consumption even though it is only made up of 13% of the adult population (2005), forecasted to grow by nearly 4 million by the year 2010.
This particular group has yet to establish brand loyalty and thus represents a “Blue Ocean” that MM can tap on to root brand loyalty.

• Women market
Focus group research shows that a woman in her early twenties would “ definitely try Mountain Man Light” • Ability to change perception questionable
MM has been so well-associated with its target group that the new age group to be targeted might not receive it well. This also questions MM’s ability to alter the current perception of its brand.

In addition, the perception of MM to the current target market is also a question mark and poses uncertainty and risks to the MM brand

However, the fact that we brand it as MM Light Beer clearly distinct it as something different from MM Lager though they are both from MM ‘family’

Tap on Illinois and Ohio for Mountain Man Light Beer (in addition to West Virginia) 9,063,267 + 8,584,283 / 37,191,077 = 47.45% of the East Central Region beer consumption. West Virginia itself only accounts for 3.65%. MM Lager is known as West Virginia’s beer – that could possibly not go very well with Illinois and/or
Ohio.

However, it is worth a try to market it to a much larger market (47.45% as opposed to 3.65% of beer consumption)

Recommendations
• To Launch ‘Mountain Man Light’ and target it to segment 21-34 years old and women in general.
• Focus on branding and positioning of Mountain Man Light to bring in revenues
• Market MM Light Beer to Illinois and Ohio
• Continue MM Lager Production to continue serving the demand of current, loyal consumers
Marketing Mix – 4Ps
Product
- Light beer
- Mountain Man signature taste (only less strong)
Price
- MM Light should be priced lower than that of MM Lager (which is priced at the level of premium domestic brands, and below the range of specialty brands similar to its competitors).
- This is to attract younger crowds with less disposable income.
- Pricing strategy is a result of our emphasis on focusing on our new consumer base for MM Light
Place
- Distribution channels that are accessible to the younger crowd
- Restaurants and bars
- Expansion into other domestic locations
- Specialized liquor stores and upmarket retail stores

Promotion
- In the past mostly target only the working-class males, now females
- Advertising medium: Cable television and lifestyle magazines that appeal to a younger, more affluent crowd should be used more than typical radio and newspaper advertising. Channels such as television commercials and billboard advertisements need to show how Mountain Man Light is relevant and applicable to a younger lifestyle.
- Co-branding strategy and have event tie ups
- Campaign