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Mountain Man Brewing Company's

Essay by   •  April 8, 2013  •  Case Study  •  212 Words (1 Pages)  •  2,366 Views

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This paper discusses the findings of the Mountain Man Brewing Company's decison of whether or not to add a product line extension to the exsiting brand. After care consderation the following options were listed and outlined in order to make a well thought out informative decsion on the company's future in the beer business.

1. What has made MMBC successful? What distinguishes it from competitors\

* Brand Loyalty

* Older working class, blue collar

* Effective marketing

* Sales team - "Grass roots" marketing

* 70% consumed at home

* higher alcohol %

2. What has caused MMBC's decline in spite of its strong brand? Think in terms of the beer market in general, as well as the market MMBC serves.

* Alternate beverages

* health concerns

* tax increases

* Consumer changes/shift in tastes towards light beer

* Limited distribution channels -shelf space

* very competitive industry and capital intensive

3. Should MMBC introduce a light beer? What are the pros and cons of doing from a qualitative perspective?

Pros -

* Gaining younger demographics

* Diverse product portfolio

* May be MMBC could create a unique Light beer

Cons -

* Alienate existing customers

* Dilute the existing brand equity in terms of image - particularly the brand stands for Lager with higher alcohol %

* Decrease/ cannibalize shelf space.

* More expensive to produce

* Light beer already has a strong presence.

Finally, if they go with light beer with a different brand name, then think about financing - new brand, additional advertising etc.

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