Mountain Man

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Submitted By jongmani
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Mountain Man Case Write-up – Marketing Executive Summary:
Mountain Man Brewing Company’s (“MMBC”) goal is to increase Net Income to over $4.5 million annually by capturing an 8.3% share of the 2010 projected age 21 to 27 East Central light beer segment and retaining a 6.7% share of the 2010 projected East Central premium beer market (Exhibits 3 and 5). MMBC’s obstacle is marketing its new light beer without tarnishing its existing Mountain Man brand and cannibalizing its current customers. To achieve this, MMBC should use a horizontal product extension strategy by introducing a new light beer called Mount Light. The new product’s name will be noticeably different than the existing Mountain Man beer, thus reducing the likelihood that it will tarnish its existing brand equity. Mount Light will target the young “first time drinker demographic”, which is a market segment that is significantly different than the current typical Mountain Man consumer. To gain a competitive advantage relative to the large domestic brewers, MMBC should position the new product as an “anti-big-business” beer, making it attractive to younger consumers, and execute a grass-roots marketing campaign.
Problem Analysis
The status quo strategy for MMBC is not viable:
• MMBC revenue is declining (2% annually) and is likely to accelerate due to increasing competition and changing consumer preferences
• Light beer is growing rapidly (4% annually) but MMBC is not participating in this market
• Mountain Man competes in the Premium beer segment which is declining by 4% annually
If MMBC were to continue its status quo strategy, it is projected that Net Income will decline from $3.1 million today to less than $0.9 million by 2010 (Exhibit 4). MMBC clearly needs to introduce a light beer, however the biggest obstacle is the risk of damaging Mountain Man’s brand and cannibalizing its existing…...

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