Also with the current situation aspects, it is anticipated that in future this decline in Lager MM continues to decline with the same ratio. Only those customers who are loyal to the MMCB brand use the alternatively lighter version of the MMBC products over the other available substitute in the marketplace.
Also, new consumers are only in that number which is MMBC has currently in its fraction of current customers. So this would be an opportunity cost considered for the Light MM product. Although by introducing the new product line with the name of light MM can deteriorate the sales revenue of the Lager Beer and also damage the brand loyalty among the existing customers of the company.
Through this company maintain its successful family business status. MMBC Competitive Advantage 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.
The company has only one product of beer known as Mountain Man lager which is produced under the taste of family trend in a refined way. This phenomenon leads towards the shrinkage in the existing market share of the MMBC brand in the competitive environment and no new inflow of the customers towards the existing product.
Major strength of MMBC is Mountain man brewing co brand name but it threat is from competitors in the market which are already in growing phase. Major threat for the company is the canalization risk of major product of the company.
It makes hard to compete in the competitive environment with a single line of a product among the competitors offering the number of product lines. By MMBC has a position to bear Mountain man brewing co capital expenditure to launch its new product line.
As company bears more cost which is unavoidable and enable the company to absorb it without pass it on their customers.
By conducting breakeven analysis we have analyzed, 94, barrels of Light MM andbarrels of Lager MM need to sell to achieve break-even point by launching the new product line. As beer contains the high amount of calories it is losing its popularity in new customers, who preferring less caloric products of the main competitors.
So buyers which have a capacity to buy more in fewer prices now has less power of purchasing the same product with the high price so demand is contracted due to this factor which ultimately has the impact on the sales revenue of the MMBC overall. No doubt there is majority type of customers who has been chosen MMBC brand by their heart but still there was a decline in that segment of the customer and also distributors were preferred other new entrants in the market for a large number of sales commission earnings.
Tobey, Increase in pricing impact MMBC was categorized as leading brand among working class people. But the market trends and customers behaviors towards a specific product and their lifestyle demand the alteration in MMBC product line.
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.
This will help in competing directly with the competitors having cheap and light caloric products which ultimately enhance the market share of MMBC. Through MM light launch MMBC can cope with its major threat of not attracting new customers towards the company which is the major reason for declining the sales revenue of the company over the years.
Tobey, Recommendation For companies, it is always a great risk to introduce its new product with the threat of forgoing sales of its existing flagging product. It is analyzed that the consumption age group of Lager MM is above 45 years and for MM light would be 25 to 45 and ratio between male and female is 4 to 1 in MM Lager and Lighter beer contain 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.
This will create a new customer based on the existing market with less marketing expenditure cost because of an existence of strong brand recognition. Light MM product should marketing through social and online media so that customers of new age group can easily know about new product of the company.
Wera, Launch of new product in existing market 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.
Through this MMBC can gain its higher return as compared to its competitors without going into deep competition with the competitors. Wera, By the efficient use of trained staff and getting possible benefits from customers brand loyalty towards MMBC make it unique from its competitors.
MM Light marketing is needed to display it on the prime locations of pub and bars where new customers based can be target directly.
Introduction of Light beer After the market analysis about lager beer and lighter version of the product, recently graduated Chris angel decide to introduce MM light in the market to grab the difference between the sales.Mountain Man Brewing Co.
- Beer For People Who Colour. Mountain Man Lager's brand equity is a key asset for Mountain Man Brewing Company. The question is whether Mountain Man Light will enhance it, detract from it, or irreversibly damage it.
Product. Harvard Business School Case Study on Mountain Man Brewing Company by Shashank Srivastava, IET Lucknow under the guidance of Prof.
Sameer Mathur, IIM. Mountain Man Brewing Company History of the MMBC Mountain Man Brewing Company is established by Guntarprangel in as a family business which is continued by his son then his grandson.
The company has only one product of beer known as Mountain Man lager which is produced under the taste of family trend in a. Mountain Man Brewing Company is able to distinguish its beer apart from its competitors mainly through its high-perceived quality and brand image strongly appealing to West Virginia population where Mountain Man Lager is also known as “West Virginia Beer.
” In addition, MMBC has a high brand loyalty rate of 53% in comparison to their. Founded in late by Sligo native Phil Cullen, Mountain Man Brewing Ltd.
is West Cork’s first entry to the Irish craft beer industry. Mountain Man brews great tasting craft beer using the finest quality malt and hops for people who colour outside the lines.Download