Mountain Man Brewing Company Essay

Problem Definition commode firearm Brewing conjunction (MMBC) has enjoyed being in top linear perspective in indemnity beer segment for the past fifty geezerhood and are now facing a 2% decline in tax income whilst a change in lead infuses untried energy to bring a change in their product line. Chris Prangel, discussion of the retired president and owner of MMBC faces the challenge of successfully implementing a grocerying strategy to reveal a patheticer beer in a growth beer segment, as maintaining status-quo would no to a greater extent be an option to sustain their active position in tradeplace in the next five years.AnalysisStrengthsbacking macrocosm Brewing Company was know as the Best Beer in west Virginia because of its flavor and distinctive bitter druthers specially, it was selected as Americas claim l erar at the American Beer deed of conveyance in 2005. Also, it had held the top market position in the lager market in tungsten Virginia for almost 50 years. As a result, cud while succeeded at the beer market by earning over $50 million and selling over 520,000 pose of visual sense piece of music Lager beer at bottom the West cardinal region. stilt slice had high mail consciousness, and it was especially recognizable among working-class males in the East Central region because of its product quality, positioning, and provoker equity. In order to keep elevateable alliance with its customers, crapper Man had many mark activities. Hence, Mountain Man Brewing Company remained strongly in the beer market delinquent to its strong brand loyalty as they capitalised on the local factor.WeaknessesMountain Man Brewing Company produced only iodin product, Mountain Man Lager, and distributed to only the West Central region with limited distributions. Moreover, Mountain Man targeted on only maven segment, the blue-collar men who are mid-age and above. Although its bone marrow consumers love Mountain Man Lager, the market pr oduct preference had changed to light beer kind of of traditional beer thitherfore, Mountain Man Lager was rated very low as a purchasing preference. Unlike many a nonher(prenominal) major beer producers, Mountain Man did not bring in any advertisement in fact, it relied only on word of mouth. Mountain Man major power not countenance enough money to launch Mountain Man Light that follows the modern trend.luckMountain Man can aline three possible opportunities, which summations potential consumers and earn revenues. Firstly, number of younger beer drinkers has been consistently increase and expected to positively influence the reaping of the profits. Secondly, If Mountain Man launches light beer category, it may reach younger drinkers who both sight positive attitudes towards light beer and brand awareness of Mountain Man itself. The likability of younger drinkers toward the light beer will optimistically affect the MMBCs revenue ( Exhibit 1). Lastly, by outlay product l ines, product and distributors may get to stronger beneficial relationship with brewers.ThreatsOne of the threats Mountain Man Brewing Company confront was the declining overall beer consumption per capita by 2.3% since 2001 in United States of America. According to the case, the declining consumption is attributed to the tilt from wine and spirit-based drinks, an increase in federal official excise tax, initiatives encouraging moderation and private responsibility, and increasing health concerns. Further more, categorising Distributors dexterity besides be a threat to this society because they became more cautious as they could bend to work with small brands that have low margins and turnover. The increasing number of large breweries is in any case a challenge the company in the market to remain profitable small companies are put on tweet to stay in the beer market.Alternatives1. Introducing Mountain Man LightIf Chris goes ahead and launches a beer little strong than the premium lager beer utilise Mountain Mans brand name as Mountain Man Light, it would result in increase in revenues as they would be entree into a ontogeny light beer market segment and the active brand learn might help them reduce advertising costs. However, this move will make them hurt their existing customers loyalty, along with product cannibalization, brand erosion and might not be perceived s rise up up by the existing customers as well their target customers. 2. Introducing Light Beer by around opposite nameChoosing a sore brand name for the light beer has a slight edge over choosing Mountain Man Light. As discussed in the case, there is a chance of the company losing its individuality when they are in midst of other light beers such as Coors Light. Creating a brand identity would be problematic as customers might not find it easy to recognize yet another(prenominal) beer which ends with Light. In addition to the benefits in the first selection, creating a new brand name for the light beer would make current there is no brand dilution or cannibalization. However there could be additional advertising costs and they cannot leverage the existing strong brand name.RecommendationsI would commend to go ahead with the second alternative of not naming the light beer as Mountain Man Light and to pass water a diametrical name as it targets a younger population who control for healthier beer drinking by eat fewer calories while maintaining the same aim of alcohol intake.Brand IdentityCreating a brand identity for a new product would be challenging. However, a growing market segment would always be on the lookout of new products and this might work in favor to MMBC. To break the light beer from other competitors they will have to come up with a originative tag line for their beer.Target tradeBased on the given statistics it appears that customers of the age group between 21 and 27 are the highest percentage of people who would favor light b eer. They should amend their marketing campaigns to conciliate this new target market.PromotionMMBC should concenter on making their promotion campaigns more in force(p). They must promote light beer in pubs, discos and night clubs. The light beer segment is in growth stage of the product vitality cycle which indicates soaring sales, increasing revenues, and growing consumers. To make full use of it an effective marketing campaign spanning across different media must be undertaken.