Essay Case

1610 Words Apr 25th, 2011 7 Pages
Bringing the Brand to Light

Pei-Chi Lee
Rahul Lakhanpal
Feridun Sarihan
Saim Onur Tamer
Weiqiong Vivi Zhuang

March 29th, 2011
Problem Definition
Facing decline in annual sales, changes in beer drinker’s preference and continuous growth in light beer sales in the whole beer industry, Mountain Man Brewing Company (MMBC) is standing at a crossroad as to whether or not introduce Mountain Man Light to expand consumer demographic into younger consumer segment and capture light beer drinkers. Advantages of doing so were obvious, however, the possibilities of diluting the Mountain Man brand equity, alienating the core customer base and cannibalizing sales of Mountain Man Lager were some real
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Even better, this group represented the “first-time drinker demographic” that had not yet established loyalty to any particular brand of beer. Therefore even if Mountain Man Light had to compete with other well-established light beer brands, it still stood a good chance of winning customers by leveraging its brand awareness.
Secondly, targeting at a totally different consumer demographic, Mountain Man Light would be much less likely to cannibalize the sales of Mountain Man Lager. As industry observers believed that product line extensions leveraging the core brand name often helped brewers obtain greater shelf space for products and created greater product focus among distributors and retailers. While some members of the management team were concerned that retailers wouldn’t grant Mountain Man incremental shelf space for the Light, it still wouldn’t erode Lager’s sales since light beer drinkers consumed beers often on-premise while 70% of Mountain Man Lager was sold off-premise. Different distribution channels would further protect the two kinds of beers from cannibalizing each other. Besides, the unique core attributes of Mountain Man Lager and the high rate of loyalty the brand had enjoyed made it unlikely for existing customers to switch to other brands just because the company introduced a new beer. In

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