For over 80 years, The Mountain Man Beer Company (MMBC) has been a successful, family-owned business in West Virginia. The Prangel family used a unique recipe to create Mountain Man Lager, a beer that became a well-respected brand in the Eastern Central Region of the United States. Now, MMBC is faced with revenue losses and a changing demographic of the modern beer drinker. Current Market Research indicates that the newer and younger market prefers a lighter beer. With the United States being the largest beer-consuming market in the world, MMBC cannot afford to rest on its’ past brand image to drive sales and brand loyalty going forward. But, can MMBC introduce a light beer brand while still staying true to its’ core brand values? And is there room is the increasingly competitive beer market for the new Mountain Man Light? Alternatives
The main alternatives that MMBC can consider are a brand extension by launching Mountain Man Light or to launch other marketing strategies, based on its current product of Mountain Man Lager.
MMBC should consider following advantages and disadvantages of launching Mountain Man Light. First, introducing Mountain Man Light can bring younger demographics in order to boost the sales. The national light beer sales in the US had been increasing 4% annually in which younger drinkers make up the major portion. Also, those younger customers are considered as the first-time drinker demographic that has not yet chosen loyalty to a certain brand of beer so there is opportunity to cultivate their loyalty to certain brand. Young demographics spent twice as much per capita on alcoholic beverages than consumers over age of 35 who are mainly the age group of MMBC. And it was forecasted that the consumption per capita among young population had a growth by nearly four million by the year 2010. Therefore, it is a highly profitable demographic to target with Mountain Man Light to generate more sales. Second, launching new...
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