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Mountain Man Brewing Company

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by

Lucie Labalette

on 24 October 2013

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Transcript of Mountain Man Brewing Company

Mountain Man Brewing Company
SWOT Analysis
The company
Mountain Man Brewing Company
Product life-cycle stage
High profit
But sales and market share start to decline
Market segment
Middle-aged blue-collar workers
Relatively small customer lifetime value
Sales decreased by 2% in 2005 for the first time in the company history.

The light beer market is seriously increasing
Mountain Man Lager
But...
Maturity stage
What
strategy
should the company adopt to meet the changing consumer demographics and increase market share?
Strengths
Brand awareness (Best known regional beer)
Loyal customers
High perceived quality
Strong market presence in off-premise locations
Weaknesses
Single revenue driver
Narrow target market, with relatively small customer lifetime value
Limited financial resources
Weak market presence in on-premise locations
Opportunities
Growing light beer market

New potential target markets : young people, showing no brand loyalty, and women

Brand recognition among young drinkers

Expanding sales channels
Threats
Ageing target market

Declining per capita beer consumption : competition from other alcohols, federal excise tax, health campaigns

Profit orientation of distributors and retailers

Changing demographics
Competitor's financial resources
Dark beer
Premium beer segment
520 000 barrels sold in 2005 generating over $50 million in revenue
Introduction of Mountain Man light beer
Segmentation & Targeting
Target markets :
people aged between 18 and 30 : 27% of the beer market

women (inclination to lighter beers because of health-consciousness)
Differentiated marketing for dark and light beers to avoid consumer confusion
Marketing Mix
Product
Regional brewery
Mountain man lager
Launch the beer under the name Mountain man to leverage on it
Clear bottle
Trendy name
Price
PLace
Mountain man lager will continue to be sold at
off-premise stores.
Mountain man light beer will be distributed through
on-premise locations
like bars and restaurants, to reach young people.
Promotion
Separate promotions for dark and light beers
Mountain Man Light Beer
The aim: conveying a trendy and youthful image while capitalizing on Mountain Man's reputation.
Campaign based on : "
Your favorite brand, a lighter taste
".
Main channels :
young crowd events
such as parties and music festivals.
Radio/ Tv channels
New media
Mountain Man Lager
The aim : retain the current market share, avoid to confuse current customers
Reduce marketing channels
Campaign would be based on : "
Your same, favorite taste
".
Grass roots marketing used for traditional customers.
Our recommendation
Considering opportunities and threats, we advise Mountain Man Brewing Company to launch a light beer, to increase market share.
Conclusion :
MMBC's target segment is maturing without expanding

While the light beer market is getting more and more important

The company should launch a light beer with a differentiated marketing mix to increase its sales and profits.
Differentiated
labeling
Same price should be applied in every on-premise location.
Full transcript