MMBC Case Analysis
Company introduction and Reasons to enter in light beer market
The company was founded in 1925 by Guntar Prangel. Mountain Man Lager has a strong market presence in East Central America. This brand has been popular from last 50 years. The main customers are blur collared males in the age group of 45 plus. The company has got many awards and recognition i.e. best known regional beer with an unaided response of 67% from state adult population. The company also won best bear award in West Virginia for consecutively 8 years, Indiana award etc. The major issue company is facing decline in sales in the main brand i.e. Mountain Man Lager. The beer industry is getting a tough competition for wine and spirit industry. The overall beer consumption has been declined by 2.3% by 2001 (Maynor, 2014). MMBC revenue is consistently decreasing @ 2% from last few years. …show more content…
The light beer will provide brand extension to MMBC. The light beer consumption is increasing in the market. The light beer consumption is 18,744,303 barrels in East Central region. It is 50.4% of overall beer consumption (Dhawan, 2013). The cumulative annual growth rate in the light beer industry is 4% from last 6 years. This product will add new dimensions to MMBC existing business. The introduction of light beer will be appreciated by young consumers. Currently there are more male customers for Mountain Man Lager. MMBC light beer will increase the gender diversity of product. More female customers will also buy light beer. The revenue will be increased, advertising cost will be low. This new product can be threat for existing product but company can also introduce light beer product with some other brand name. There will be increase in the advertising cost if company will choose some other brand name for introduction of light
Company introduction and Reasons to enter in light beer market
The company was founded in 1925 by Guntar Prangel. Mountain Man Lager has a strong market presence in East Central America. This brand has been popular from last 50 years. The main customers are blur collared males in the age group of 45 plus. The company has got many awards and recognition i.e. best known regional beer with an unaided response of 67% from state adult population. The company also won best bear award in West Virginia for consecutively 8 years, Indiana award etc. The major issue company is facing decline in sales in the main brand i.e. Mountain Man Lager. The beer industry is getting a tough competition for wine and spirit industry. The overall beer consumption has been declined by 2.3% by 2001 (Maynor, 2014). MMBC revenue is consistently decreasing @ 2% from last few years. …show more content…
The light beer will provide brand extension to MMBC. The light beer consumption is increasing in the market. The light beer consumption is 18,744,303 barrels in East Central region. It is 50.4% of overall beer consumption (Dhawan, 2013). The cumulative annual growth rate in the light beer industry is 4% from last 6 years. This product will add new dimensions to MMBC existing business. The introduction of light beer will be appreciated by young consumers. Currently there are more male customers for Mountain Man Lager. MMBC light beer will increase the gender diversity of product. More female customers will also buy light beer. The revenue will be increased, advertising cost will be low. This new product can be threat for existing product but company can also introduce light beer product with some other brand name. There will be increase in the advertising cost if company will choose some other brand name for introduction of light