Mountain Man Lager Case Summary

1. What is Chris considering doing and what factors have to align to be successful? What goals should he have? Ans. Chris Prangel, the head of the marketing operations at the Mountain Man Beer Company wanted to launch Mountain Man Light, a light beer formulation of Mountain Man Lager with the hope of attracting younger consumers to the brand. Chris wanted to do this because:- a) In the previous 6 years the light Beer sales in USA has been growing at compound annual growth rate of 4% while traditional premium beer sales have been declining at the same rate. b) Mountain Man beer's prime product was Mountain Man Lager a premium beer which could suffer the same fate as the other
2) The light beer industry share for USA was 50.4% of the total beer market and if Mountain Beer Light was introduced there was a chance that the Premium Mountain Man Light customer base would be alienated and this would lead to the brand erosion of Mountain Man Lager. So for mountain beer light to be successful the brand needs to be promoted in such a way so that there is no cannibalization of the prime brand Mountain beer Lager. 3) Also the new light beer had to be promoted so that the retailers would provide substantial shelf space to the light beer. 4) If the project is carried out it would be done, under the assumption that Mountain Man Beer Light would generate a profit within a span of 2 years. The senior management needs to be convinced about this fact. The senior managers are sceptical about the success of this brand keeping in mind the aspects of brand dilution and cannibalization and extensive advertisement