The brand can also have a product failure if the consumers do not like the taste. The market also has an increase rate of 4% annually compared to a 4% decrease for premium beer. The final assumption is that the Light Beer market growth rate is only 0. Chris, must consider both advantages and disadvantages taking this approach. It creates a light beer for the younger target market that drinks light beers. It could, for example, be a well respected local celebrity whose values and image sync well with those of the company. They could respond in such a way as to make doing business very difficult moving forward.
The business should execute this goal by having a presence in bars and pubs that serve Mountain Man and providing company-related materials such as koozies, coasters, flyers, and other promotional materials. It could also make customers disappointed with them following the trends. Weaknesses and threats of creating Mountain Man Light include the fact that there is already stiff competition in the light beer market from major domestic i. The beer sells mainly in off-premise locations. Prangel called this beer Mountain Man Lager, and its sales took off.
Because the light beer industry is growing at a compound annual rate of 4% in the last six years, Prangel is trying to determine if it would be lucrative for Mountain Man Brewing Company to enter the light beer market. Light beer sales account for over 50% of all beer sales and are growing at a compound rate of 4% per year. There is always a way to appeal to a younger crowd, Mountain Man needs to find the window of opportunity and take those consumers. As competitors we may observe major domestic producers like Anheuser Busch, Miller Brewing Company and Adolf Coors. Due to changes in beer drinkers' taste preferences, the company is now experiencing declining sales for the first time in its history.
Branding the brewery as an attraction in West Virginia will increase brand awareness to target audience outside of their loyal West Virginian consumers. Even today, after 80 years, the lager is a legacy brew, awarded as the Best Beer in West Virginia for many years in a row. Appendix 6 -We will see increase in Income and Revenue starting 2007 Appendix 7 Appendix Appendix 1 Appendix 2 Mountain Man Sales Assuming 2% per year reduction Mountain Man Sales Assuming 2% per year reduction Appendix 3 Projected Income Statement Mountain Man Income Stament 2005 2006 2007 520,000 Barrels 509,600 Barrels 499,408 Barrels. It was purchased by Sebastiaan Artois in 1717 and brewery changed its name to Artois. A study in West Virginia resulted in Mountain Man Lager being rated as the best known regional beer, with 67% of adults voting in its favor. Due to changes in beer drinkers' taste preferences, the company is now experiencing declining sales for the first time in its history.
They risk losing their current reputation for being unique with a good stand-alone product, which may also push dedicated customers away. What are the advantages of introducing a light beer? Craft brewers account for 1. Target market for the product is middle aged men from the blue collared working class. Mountain Man should try to increase its target market with its original idea before it tries to introduce a new brand. In conclusion, under all scenarios we will cover the losses within the first three years. Especially in recent years due to an increased awareness in personal responsibility and health concerns that encourage moderation in alcohol consumption.
Alternative 1: Create, promote and sell Mountain Man Lager Light Pros: It gives them the use of their name that is already well known and liked in their current market area. Sorry, but copying text is forbidden on this website! Mountain Man is very well-known by the younger beer drinkers, however, they tend to buy and consume in quantity; the Mountain Man Lager is not on their top preference, along with other lagers and full-flavor beers. Instagram There was an error retrieving images from Instagram. This paper will evaluate the following: 1. Also, meeting the growing demands of younger generations and distributors will represent 28% of the market, and lead into a great presence in restaurants and pubs where Mountain Man had no previous existence. Subjects will be randomly selected to participate in focus group testing. This will encourage tourism and will be another income channel for the company.
In terms of differentiating the Mountain Man Lager, the company has the competitive advantage of offering a cheaply priced beer without sacrificing its robust, bitter taste. Notice how the questions go from broad to specific. Keep all of these questions! The light beer market is growing steadily and accounted for 50. Keep the authentic, rugged brand image by introducing a different type of brew that will continue to appeal to the target market. Some second-tier producers can beat the company on price, but their beers tend to be more watered-down and lighter, which allows Mountain Man to appeal to customers who want more taste from an inexpensive beer.
But developing brand loyalty over years with a new segment of the product line extensions will help the company obtain a greater shelf space and will create better product focus among distributors and retailers. Ultimately, the brand personality is already created through the brand name and image but just needs to be enhanced and advertised. The first strategy would be to keep doing what we are doing focusing on our core consumers, maintaining our company as a single product company. Contribution of Lager and Light Breakeven in Dollars and Units Barrels Market Share Cannibalization of 5% Cannibalization of 20%. Increase in expenses for marketing efforts and expanded distribution even if you do not introduce a new product. As an alternative to product line expansion, we propose that Mountain Man Brewing Company use its money and available resources to expand their brand image and identity via new marketing strategies, such as updated advertising, logo rebranding, and working to attract new customers to their existing product.
Hence, to observe the competitors price and strategy the company should carry out a market research to determine the best pricing strategy. The three targeting criteria for points of parity and differentiating are Potential, fit and defensibility. Branding includes an image of coal miners on the bottle suggesting a strong taste and reinforcing target market segments to a niche. Mountain Man Lager is packaged in a brown bottle with its original 1925 label design of a group of coal miners on the front. But it is important that price must not be too low in order to break even and not high fearing low sales.