It can also be considered that introduction of the Light MM cannot deteriorate the sales revenue of the existing product but it can create a new customer based without switching Lager beer customers towards Light MM. Case Study Analysis 1. MMBC should also look to expand their distribution range to acquire more states in the U. But it is important that price must not be too low in order to break even and not high fearing low sales. Objectives Be able to define product and know the major classifications of products and services.
But it is important o meet sales revenue in Light MM greater than the fall in the revenue of larger Beer to compensate the effect of decreasing the main product demand of the MMBC. A limited time offer! This is an expensive endeavor for a lean company like Mountain Man. As this MMBC brand is popular in working class they perceive it as high quality and upper-class status product as compared to Miller and Budweiser. Friday, August 11,
By MMBC has a position to bear the capital expenditure to launch its new product line. About project SlidePlayer Terms of Service.
MMBC is well known for their bitter tasting product. The chance that the MM Lager decline rate will double is very low given the fact that the MM lager brand has a great awareness and loyalty on the market.
Launching light beer with a new name — Data suggests that light beer should not be marketed to the existing customer base, as they are simply loyal to the original lager.
Tobey, Increase in pricing impact MMBC was categorized as leading brand among working class people. Published by Terence Tucker Modified over 2 years ago. If you wish to download it, please recommend it to your friends in any social system.
MMBC is known for their traditional high quality lager with the potential to expand into several fast growing markets such as light beer and super-premium beer.
But it is important that price must not be too low in order to break even and not high fearing low sales. MMBC could restructure how they market their beer, looking at new avenues. For companies, it is always a great risk to introduce its new product with the threat of forgoing sales of its existing flagging product.
MMBC should do something soon in order to keep up with the changing market. It was considered as above from premium brands and below from the special brands in the region, therefore, it was priced with the highly competitive pricing strategy to maintain its sales growth and competition with it competitors.
Case Study Analysis 1.
Mountain Man Brewing Company
We think you have liked this presentation. This will create a new customer based on the existing market with less marketing expenditure cost because of an existence of strong brand recognition. ByMountain Man revenues would have declined by 9.
There is forgone sales revenue encountered with the introduction of Light Mmbcc in the Lager Beer market. Mountain Man Brewing Case Analysis.
Case Study Analysis 2. All has been well thus far but now the market trends are changing rapidly. By implementing these changes it could offset the market share loss MMBC lager is currently facing. stud
Governmental involvement in the beer industry is another issue at hand. Exhibits [pic] [pic] [pic]. Acquire foundational knowledge of marketing-information management to understand its nature and scope Marketing Indicator 1. Do nothing — MMBC customers base drinking lager is a shrinking market. MMBC success is based on several major factors such has brand recognition among their customers, their special family refined taste recipe for the core product of the company and its maintained quality throughout the several past years.
Mmbc Study | Case Study Template
However, to introduce Mountain Man Light, the company would have to consider a possible cannibalization of Mountain Man Lager by Mountain Man Wtudy that would end up hurting the sales of its core brand. Strengths Mountain Man Lager has established a brand with a strong loyal blue —collar clientele.
Learning Goals Understand products and the major classifications of products and services Learn the decisions companies make regarding their products and. MMBC needs to distance itself from the blue-collar beer image in order to attract the younger generation. The brand grew to claim a respectable market share for an independent-family-owned-brewery, in whole of the East Central United States by The second scenario suggests the erosion level of Light beer sales are increasing while Premium beer sales are decreasing in the east central region as seen in Exhibit 5 in the MMBC case.
Over the past four years per capita beer consumption in the US has declined by 2. As such they are losing their influence over the younger market, as well as the women drinkers.