Professor CHUNG Seh-Woong
Mountain Man Brewing Company: Bringing the Brand to Light
Dickson LAI Jia Hao
LIM Yi Jun
Greena NG Xin Yi
Selena SHEN Liqing
HAN Chuin Chi
Zac Douglas XU Peiwen
20 February 2013
Table of Contents
Due to a shift in psychographics and demographics, Mountain Man Brewing Company (MMBC) is currently facing declining sales of its flagship product - Mountain Man Lager, a premium beer popular with blue collar men above the age of 45. MMBC is facing the decision of whether to launch their own light beer in order to gain a portion of the growing market in light beers. 2. Reasons for Launching
2.1 Current Market Trend
Beer consumption in the east central region, which constitute 50.4%, has shown an increasing preference for light beer. The increase preference can be seen from its annual 4% compound increment in Light Beer for the past six years1. As a result of the trend, it has lead to the decline in consumer soughting after Mountain Beer Lager.
The increasing presence of young drinkers with low brand loyalty and high consumption rate is an opportunity for MMBC to penetrate into the new market. Additionally, since young drinkers spent twice as much per capita on alcoholic beverages compared to drinkers 35 years of age with a growth projection of nearly 4 million in 5 years, they make for a large untapped profitable market for MMBC. By leveraging on their current strong brand awareness among young drinkers, MMBC can further secure their positioning in the beer industry with the introduction of the light beer .
2.3 Product Cannibalism
The launch of a light beer series may result in product cannibalizing with the lager beer sales due to competition for the limited shelf space in off-premise locations. However, this problem can be circumvented through negotiations with distributors and retailers to secure additional shelf space for the light beer without competing with Mountain Man Lager.
2.4 Positioning of the Lager Beer
MM Lager Beer is positioned as a renowned brand among the blue collar workers and perceived by young drinkers as their grandfathers’ and fathers’ type of beer. The bitter taste of the MM Lager Beer and the valiant image portrayed by the logo, does not bode well with the young drinkers who seeks for fun and enjoyment with their friends. In addition, the lack of financial fundings creates a strong barrier for MMBC to emulate a grassroots advertising (in the case of Pringles) to change the perception of the consumers.
Moreover, changes to the brand perception might resulted in the rejection of MMBC’s main clientele. This might cause reduction of loyalist and serious damage to the strong brand equity that MMBC currently holds. 2.5 Launch of Mount Lite
With the aforementioned analysis, it is advisable for MMBC to launch their light beer: Mt. Lite (Mount Lite)2. Since MMBC has already established itself among the young drinkers for the quality beer they produce, MMBC should market Mt. Lite in accordance to their current brand attributes (quality and authenticity) to distinguish themselves from the other light beers.
3. Marketing Plan for Mount Lite
3.1 Market Segmentation
The 4 main market segments are highlighted namely Geographic, Demographic, Psychographic and Behavior, follow by singling out variables under each segment3.
In the Geographic segment, the focus is placed on East Central region. This is because MMBC being well verse in this region had earned a remarkable share of primary distributors within the region. With that familiarity, it breeds easy access to its potential consumer.
Through analyzing Demographic, age and life cycle, gender, and social status are determin. Accordingly, they are further segment into 20s, 30s and 50s age group, female and male, working class and upper middle class. In doing so, it improves MMBC market share by...