But it is important that price must not be too low in order to break even and not high fearing low sales. By entering a growing market MMBC could gain drinkers from different demographics which they currently lack, for instance women and those in their twenties new to drinking. Through this MMBC can gain its higher return as compared to its competitors without going into deep competition with the competitors. We strongly advice launching MM Light Beer, it will be profitable under any case! MMBC Competitive Advantage MMBC success is based on several major factors such has brand recognition among their customers, their special family refined taste recipe for the core product of the company and its maintained quality throughout the several past years.
MMBC should do something soon in order to keep up with the changing market. Light beer sales are increasing while Premium beer sales are decreasing in the east central region as seen in Exhibit 5 in the MMBC case. While Mountain Man may keep its existing customer base satisfied, that customer base is being replaced in the coming years. Published by Terence Tucker Modified over 2 years ago. Also, new consumers are only in that number which is MMBC has currently in its fraction of current customers. Advertising would also add to the burden of MMLight. As such they are losing their influence over the younger market, as well as the women drinkers.
Mountain Man Brewing Company
Exhibits [pic] [pic] [pic]. MMBC needs to distance itself from the blue-collar beer image in order to attract the younger generation.
S per capita beer consumption had declined by 2. We will demonstrate that launching a light beer product shows promise for improved profit through This segment preferred light beer to atudy beer and thus light beer sales started gaining market share and accounted for By the efficient use of trained staff and getting possible benefits from customers brand loyalty towards MMBC make it unique from its competitors.
Tobey, Recommendation For companies, it is always a great risk to introduce its new product with the threat of forgoing sales of its existing flagging product. Exhibit 5 shows light beer has a much greater volume than premium beer; signifying even small market penetration can mean significant volumes.
MMBC could restructure how they market their beer, looking at new avenues.
Mmbc Study | Case Study Template
Major threat for the company is the canalization risk of major product of the company. Launching light beer with a new name — Data suggests that light beer should not be marketed to the existing customer base, as they are simply loyal to the original lager.
So this would be an opportunity cost considered for the Light MM product. As such they are losing their influence over the younger market, as well as the women drinkers. They could respond in such a way as to make doing business very difficult moving forward. However, to introduce Mountain Man Light, the company would have to consider a possible cannibalization of Mountain Man Lager by Mountain Man Light that would end up hurting the sales of its core brand.
MMBC should also look to expand their distribution range to acquire more states in the U. Tobey, Increase in mbc impact MMBC was categorized as leading brand among working class people. Literature Review Dissertation chapter: But it is important o meet sales revenue in Light Stusy greater than the fall in the revenue of larger Beer to compensate the effect of decreasing the main product demand of the MMBC. The senior management at MMBC is reluctant to launch the new product and site the examples of over 40 breweries those have closed down.
Over the past four years per capita beer consumption in the US has declined by 2.
All has been well thus far but now the market trends are changing rapidly. Only those customers who are loyal to the MMCB brand use the alternatively lighter version of the MMBC products over the other available substitute in the marketplace. Strengths Mountain Man Lager has established a brand with a strong loyal blue —collar clientele. Get custom essay sample written according to your requirements Urgent 3h delivery guaranteed Order Now.
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. In recent years health awareness is going viral among the customers so consumers prefer less caloric product such as spirit drinks and wines.
But the market trends and customers behaviors towards a specific product and their lifestyle demand the alteration in MMBC product line.
Through this company maintain its successful family business status.
In this case the introduction of the light beer to the market will be almost breakeven on the second year: It makes hard to mbmc in the competitive environment with a single line of a product among the competitors offering the number of product lines. Launching Mountain Man light — The research suggests that where the brand equity drives the sales of lager; the same strategy would not work for light beer as the association of stronger, bitter flavor is not going to capture the light beer segment.
Advertising would also add to the burden of MMLight. Share buttons are a little bit lower.
Mountain Man Beer Company – Case Analysis
This will help in competing directly with the competitors having cheap and light caloric products which ultimately enhance the market share of MMBC.
These numbers are significantly less than those drinking domestic light beer and domestic premium beer. MMBC needs sthdy consider the cost associated with launching the new line.