Looking at ALTERNATIVES :
Launch MM Light Beer – Under the Mountain Man brand name•Brand Recognition Association with the MM brand which is reputable in the East Central region will enhance the launch of MM Light Beer (Superior Brand Recognition)
•Goes well with the youth
Light beer goes well with the young crowd and represents an untapped market of “no preference” – Prefer light beer to other categories and typically consume in quantity. This group accounts for 27% of the total beer consumption
Making use of the already established MM brand name will enable MM Light to cut down on advertising costs in for example establishing a new brand altogether
•Possible increase in revenue
Tapping on the light beer segment will potentially increase revenue (and reverse the decline in sales) for MM as the light beer segment accounts for 50.4% of consumption in the East Central region where MM principally competes.
In addition, light beer showed regional revenue growth of 4% annually and MM can grow it quarter of a percent each year.•Erosion of core brand equity Targeting a new market/entering the light beer market would mean that MM no longer only produces MM Lager catered mainly for the blue-collar middle-to-lower income men over age 45. Focus is to be placed elsewhere, and MM Lager would no longer hold the entire core brand equity of the MM Brand
•Failure to identify with MM Light
MM brand name might not go well with the light beer favoured by the young. The association with MM has always been blue-collar men aged over 45. Thus, it would be an uphill task to reposition MM as a brand of beer that appeals to the younger lot. Brand awareness, perception of quality and brand loyalty are cornerstones of MM
•Product Cannibalisation not a distant happening
MM Light might actually “takeover” MM Lager and destroy the latter. In addition, both products might...