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Mountain Man Brewing Company: Bring the Brand to Light

Essay by   •  April 12, 2011  •  Case Study  •  597 Words (3 Pages)  •  2,526 Views

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SWOT Analysis:

Strengths Evidence Implications

Well-known brand and experience Reputation; known as a quality beer. Enable to meet the needs of the consumers.

Reduce take-up risk by customers

Easy to convince retailers to stock your beer extensions.

Introductory marketing need not create awareness.

Possible packaging and labeling efficiencies.

Brand loyalty With a rate of 53% in the East Central region. Mountain Man brand loyalty rate is higher than that of competitors (42% Budweiser and 36% for Bud light)

Strong associations to Mountain Man Lager Brand Defined as for working-class, tough, down-to-earth and not 'corporate' but local, authentic brand with strong heritage.

The young would not like to be associated with a "tough" and "old brand, while the old would not like to be associated with the young drinking "tasteless" beer.

Weaknesses

Limited economic resources

Limited geographic coverage

Strategy is not updated to the current market needs to reach out to potential customers. Grass-root marketing in building brand awareness. Mountain Man had always relied on grass roots marketing to spread its beer quality message by word of mouth.

Opportunities

New product (light beer) Overall shift of market to light beer due to changes in beer drinkers' preferences.

Light Beer grows with 4% CAGR.

Light beer could re-invigorate lager.

Light beer could dilute lager equity.

Potential for cannibalizations of brand.

Light beer could potentially attract the younger drinkers.

Increase market segment Younger drinkers (ages 21-21) account for more than 27% of total beer consumption.

This age group reportedly spent twice as much per capita on alcoholic beverages than consumers over 35 years of age. This market segment provides a profitable opportunity for Mountain Man to expand into market segments, such as female market and younger beer drinkers.

Threats

Premium Beer contracts with -4% CAGR The decline in U.S beer sales is largely due to consumers' preferences towards wines and spirits-based drinks. The fact of lager beer is dark, bitter and has a higher alcohol content with product label shows that light demographically does not appeal to the current loyal customers

Increase in the federal excise

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