The Federal Government has already raised the excise tax and with laws changing how beer can be promoted in a retail setting newly passed in WV could other states in the East Central region be too far behind? MMLager is losing the younger generation hands down. Over the years its brand identity has been associated as an old school, regional brewing company and its consistency in taste and blend. MMBC has a very small demographic to which the lager appeals to. Through MM light launch MMBC can cope with its major threat of not attracting new customers towards the company which is the major reason for declining the sales revenue of the company over the years. The chance that the MM Lager decline rate will double is very low given the fact that the MM lager brand has a great awareness and loyalty on the market.
Case Study Analysis 2. Over the past four years per capita beer consumption in the US has declined by 2. Strengths Mountain Man Lager has established a brand with a strong loyal blue —collar clientele. MMBC should do something soon in order to keep up with the changing market. Share buttons are a little bit lower. Studies have shown they prefer a light beer, something MMBC is considering developing. Although by introducing the new product line with the name of light MM can deteriorate the sales revenue of the Lager Beer and also damage the brand loyalty among the existing customers of the company.
While Mountain Man may keep its existing customer base satisfied, that customer base is being replaced in the coming years.
Branding and the Marketing program. But the market trends and customers behaviors towards a specific product and their lifestyle demand the alteration in MMBC product line. S per capita beer consumption had declined by 2. These numbers are significantly less than dtudy drinking domestic light beer and domestic premium beer.
Do nothing — MMBC customers base drinking lager is a shrinking market. But this does not, in anyway, provide any solid evidence that MMBC will fall in those same footsteps if they are to launch the new line. The chance that the MM Lager decline rate will double is very low given the fact that the MM lager brand has a great awareness and loyalty on the market.
The key consumer segment for beer companies had shifted to younger drinkers years of age.
The second scenario suggests the erosion level of One ,mbc the most troubling aspects of the surge in light beers popularity is the demographic that is driving it. Want to get a price estimate for your Essay?
Distributors started paying more attention to higher turnover and margins thereby dropping smaller brands like Mountain Man that contributed little to bottom line. Launching light beer with a new name — Data suggests stidy light beer should not be marketed to the existing customer base, as they are simply loyal to the original lager.
As this MMBC brand is popular in working class they perceive it as high quality and upper-class status product as compared to Miller and Budweiser.
A look at the market analysis show alarming trends. In this case the introduction of the light beer to mmbbc market will be almost breakeven on the second year: Exhibit 5 shows light beer has a much greater volume than premium beer; signifying even small market penetration can caes significant volumes.
MM Light marketing is needed to display it on the prime locations of pub and bars where new customers based can be target directly.
casse Objectives Be able to define product and know the major classifications of products and services. The company has only one product of beer known as Mountain Man lager which is produced under the taste of family trend in a refined way. This will help in competing directly with the competitors having cheap and light caloric products which ultimately enhance the market share of MMBC. Chris can go ahead and launch new Light Beer.
Mountain Man Beer Company – Case Analysis | Free Essays –
Businesses must act in a certain manner in order to maximize profits or run the risk of losing their place in the marketplace. So buyers which have a capacity to buy more in fewer prices now has less power of purchasing the same product with the high price so demand is contracted due to this factor which ultimately has the impact on the sales revenue of the MMBC overall.
JJ Cavanaugh and Wes Perry. Mountain Man Lager was known for its authenticity, quality and toughness. Light MM product should marketing through social and online media so that customers of new age group can easily know about new product of the company. Major threat for the company is the canalization risk of major product of the company.
Mountain Man Beer Company – Case Analysis
After the market analysis about lager beer and lighter version of the caes, recently graduated Chris angel decide to introduce MM light in the market to grab the difference between the sales. Major strength of MMBC is its brand name but it threat is from competitors in the market which are already in growing phase.
All has been well thus far but now the market trends are changing rapidly. Understand the decisions companies stury regarding their.
With economies of scale in brewing, transportation and marketing, the Budweisers of the world are formidable rivals to say the least. Get custom essay sample written according to your requirements Urgent 3h delivery guaranteed Order Now.