A few cons could be losing brand loyalty amongst the older generation, losing sales of the Mountain Man Lager due to cannibalization, and a lower contribution margin. But it is important that price must not be too low in order to break even and not high fearing low sales. Chris is considering the production of a light beer for Mountain Man Brewing Company as a way to compensate for the recent decline in sales and increase in the market for light beer sales. Over the years its brand identity has been associated as an old school, regional brewing company and its consistency in taste and blend. Notice how the questions go from broad to specific. Please see excel sheet in Appendix1 for further calculations details. One day a thirsty Manjhi was impatiently waiting for his wife to fetch him water from the other side of the mountain.
Research supports that Mountain Man was every bit recognizable as Chevrolet and John Deere to their nucleus clients. Light Beer Consumption minus top 3 competitors and imports Assume. Consecutively the company grew as a legacy brewery, gathering a very strong brand loyalty and positioning. Mountain Man Brewing Company needs to have a wider target market before introducing a completely new product that could potentially destroy the company if it were unsuccessful. Light Beer market 2 years to obtain projected sales of Mountain Man Light Months to break even 50440000 520000 97 66. I will explore the pros and cons of creating a light version of the brew and other strategic options for growth if this brand extension is not launched or if the launch is unsuccessful. John Stith Pemberton is pharmacist who invented formula for the most popular product Coca-Cola in 1886 in Columbus, Georgia.
Although this seems like a probable solution, there are two major problems Mr. His wife had to negotiate a treacherous path and spend half a day to fetch water from a distant river. In add-on, he is trusting a successful launch of Mountain Man Light in the local on-premise locations will hike the lagging gross revenues of Mountain Man Lager. For his venture to be successful the following factors needed to fall into place:- 1 Chris assumed that the popularity of Mountain Man Lager would reinforce the sales and brand value of Mountain Man Light and in turn it would reinforce the sales of Mountain Man Lager. Chris, must consider both advantages and disadvantages taking this approach.
I can not feel that I squandered my time looking at this. In addition use the following information for 1995. Yet, the price of the light will still be the same as the lager. Key consumer segment for beer companies was younger drinkers of 21-27. In customer relationships, this beer had strong brand image among mid-age blue collars that showed strong loyalty to it.
The worst scenario assumes the erosion rate of 20%, which is highly unlikely. Carbonated soft drinks are the largest players in the beverage category. It is a regional favorite. Mountain Man has reached a mature phase over the past few years, but might be reaching a declining phase in the industry. Taste, brand image, both deliver cognitive and emotional reaction to the consumers evaluating price and tradition Judgment and Feeling factors respectively creating a resonant brand with high level of brand loyalty and strong relationship with consumers.
By working diligently as it always has, to satisfy its new customer base, Mountain Man Light has a great potential to grow based on the reputation of the company as well as the growth in the market itself. The large majority of drinkers is between 45 and 54 at 32%. Consumer tendencies resulted in a displacement in the beer industry. Product Mountain Man had high quality product. Rhodes invested capital made from renting water pumps to miners and started buying mining claims. She had taken longer to come back than usual. Mountain Man Lager boasted a 53 % trade name trueness rate compared to 42 % for Budweiser and 36 % for Bud Light Abelli, 2007.
Mountain Man is part of the craft beer industry, but it has a higher craft beer volume than most of the other four markets brewpubs, microbreweries, contract breweries, and regional craft breweries. She then moved to the Detroit Free Press as a feature writer. It has many recipes that never make it to retail due to these standards. The mountain man brand has a loyal following. Recommendation and Justification Mountain Man Brew Company should launch Mountain Main Light. Please see excel sheet in Appendix1 for more details. Beer consumption has dropped to its lowest since 2002.
While the light beer market would continue to grow, Mountain Man Beer would be at risk of fading away from public conscience and due to low visibility among newer, younger consumers. What has made the Mountain Man Brewing Company successful? Anheuser-Busch, Miller, and Coors also accounts for 84% of market share in light beer in 2005. What other strategic options for growing does Chris hold if Mountain Man Light is non launched or is unsuccessful? Light beer could dilute lager equity. The beer it produced was flavorful and bitter-tasting. Business level strategy: Low Cost Leadership strategy.
Due to this force per unit area, every bit good as, a oversupply of merchandise many independent breweries throughout the East Central part had closed. However, launching a new product was costly. What distinguishes it from competitors? There could be certain risk of cannibalization, not for the core consumers as they are loyal, but because of distributors. This paper will evaluate the following: 1. Mountain Man brand represents all blue-collar workers across the United States.