1- What is Chris considering doing and what factors will he have to align to be successful? With Mountain Man Beer Company (MMBC) experiencing recent declining sales for the first time in its history representing a 2% loss in revenue the previous year and prospect of continuous decline, Chris is considering launching Mountain Man Light Beer as a brand extension aligned with changes in beer drinkers’ preferences, seeking to maximize market coverage while minimizing brand overlap and at same time avoiding any brand equity damage, as its core consumer segment is quite different from the new targeted consumer segment. With this plan Chris expects that MMBC regains the beer market leadership in the U.S. East Central Region. Also it is important to keep brands identity well defined but complemented avoiding cannibalism between the core product and the newly introduced product or become diluted in a sea of competitors brands. a. What goal should MMBC (Chris) have?
MMBC (Chris) should present a new detailed marketing plan to launch a new product called “Mountain Man Light” using the brand value chain marketing programme where the extension product “light beer” will lift the core product “lager beer” expecting to increase brand equity and revenue which will cover the associated marketing and incremental SG&A expenses within two years after the launch. b. What has made MMBC successful? What distinguishes it from competitors? Since 1925, this traditional and regional family owned brewery has cultivated its brand loyalty by sticking to its core customer base, offering to them an attractive product and offering them a brand building product with great price, tradition, local authenticity, quality, and a unique taste. MMBC is different from its competitors because of its history, its status as an independent, non-corporate and family owned regional based brewery giving it the originality desired by its core consumers. 2- What is distinctive about MMBC’s product?
Mountain Man Lager beer has a range of qualities that makes it distinct but the smoothness, bitter flavor, slightly higher alcohol content differentiates it from other beers, without forgetting that it has built loyalty among its customers thanks to its strong appeal to its customer base. a. What is distinctive about MMBC’s customers?
MMBC’s customers are blue-collar, middle-to-lower income men over age 45 with emotional tendency for traditional and local products. b. How is MMBC’s promotion different and effective?
MMBC’s promotion was different because it focused majority of is marketing efforts in getting its product into off-premise locations. This move was effective because its core customers, the blue-collar males, purchased 60% of their beer from off-premise locations. 3- What about these factors enabled MMBC to create such a strong BRAND? According Kevin Keller’s “Brand Resonance Pyramid” deep brand awareness through of local authenticity as an East Central beer is the salience’s factor presents in consumers’ minds in purchasing situations. Taste, brand image, both deliver cognitive and emotional reaction to the consumers evaluating price and tradition (Judgment and Feeling factors respectively) creating a resonant brand with high level of brand loyalty and strong relationship with consumers. 4- What has caused MMBC’s decline in spite of its strong brand? Drinkers’ preferences began to change and its main core of consumers was shrinking due to aging. The new generation drinkers preferred light beer. Beer consumption has dropped to its lowest since 2002. a. Describe the market MMBC serves and the beer market in general. MMBC serves in a regional market in East Central of the US with 18.3% of total U.S beer share market. In West Virginia where MMBC has held the top market position for almost last 50 years, but currently it is suffering from arcane law which limits beer promotion in retail establishments and consequently beer prices drop with deep discount,...
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