Essay on Mountain Man Brewing Company: Bringing the Brand to Light

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1- What is Chris considering doing and what factors will he have to align to be successful?
With Mountain Man Beer Company (MMBC) experiencing recent declining sales for the first time in its history representing a 2% loss in revenue the previous year and prospect of continuous decline, Chris is considering launching Mountain Man Light Beer as a brand extension aligned with changes in beer drinkers’ preferences, seeking to maximize market coverage while minimizing brand overlap and at same time avoiding any brand equity damage, as its core consumer segment is quite different from the new targeted consumer segment.
With this plan Chris expects that MMBC regains the beer market leadership in the U.S. East Central Region.
Also it is
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b. Describe the competition and MMBC’s threats.
• So-called Major domestics producers, especially Anheuser Bush, MMBC’s main competitor, are focused on economies of scale in production and advertisement and spend heavily to maintain their own sales level. They dominate the market with 42% of market share in the East Central Region (Case study - Exhibit 3)
• Second-tier domestic producers (12.5 % market share in ECR, Case study - exhibit 3), medium-size competitors and regional producers, category to which MMBC belongs. These companies try to follow the major players in their product offering and marketing strategies, but fall short on the financial and marketing capabilities. They constitute MMBC’s main competition.
• Import beer companies have a similar market share of 12% and have a common denominator with the regional brewers; their beers tend to have bitter taste. Demands for these beers are on the rise.
• Specialty brewers, with a negligible market share of 1.5% but with a rising demand.
c. What is the likely future of competitive brewers? What is MMBC’s market/competitive position?
Competitive brewers will introduce newer styles of beers to meet beer drinkers’ new preferences, more specifically lighter beers. However, both styles will be kept under the same brand
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