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?... [continues]
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