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December 2
2009
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THIS DOCUMENT IS A CASE ANALYSIS OF THE CASE OF MOUNTAIN MAN BREWING COMPANY. THE DOCUMENT IS ABOUT DILEMMA OF MOUNTAIN MAN MANAGEMENT, OPTION AVAILABLE AND STRATEGIES THAT ARE SUGGESTED FOR RESOLVING THE DILEMMA.
urn around Management is not a very simple thing to do. It needs different Intellect,
Powerful Strategies, Great insights, and above these Successful Implementation of all the decisions & strategy. American Beer Industry itself is a symbol of oligopoly where few brand with their different variants trying to capture new market as well as on the same time retaining the older ones. Mountain Man Brewing Company (MMBC) also known as West Virginias Beer, a symbol of toughness, Authenticity, quality and uniqueness. First time everin the history, Company is facing drop in sell which makes the management sweat a bit. The reason is the changing taste and preferences of the American customers. This Industry is going for Lager to light demand shift as strong beer consumers are vanishing with time whereas young generation segment is increasing and their choice is Light. The case is very interesting where company is finding itself in a junction from where they have to take a decision which is very critical for the survival in this rapid changing hypercompetitive marketing. Companies like Mountain Man Lager which has a strong association with blue collar, Middle to Lower Income men over age 45. These are the core drinker for MMBC which are very much loyal over the long period. They are loyal for such a strong drink due to many reasons like taste, toughness and availability. Now company is worried about Brand Equity if they will go for a growing beer sector which is Light.
Questions to be answered by MMBC Management- Reasons for Dilemma 1. Whether to go or not to go for Light segment beer segment which is growing at a very fast pace? 2. If yes then with the same name Mountain Man (Umbrella Branding)/New Name (Private labeling, New Product with new communication)? 3. If answer to first question is yes then what will be strategy to enter in this segment if entered?
Section B 2
a. b. c. d. e.
Identify logical new product possibilities. Capitalize on the paid-for equity in established brand names. Enable a company to enter new categories at significantly lower cost. Reduce the risk of failure given the already established awareness and trust. Create a positive synergistic effect with the efficiencies of umbrella branding and advertising. f. Reinforce the consumers perceptions of the parent brand name. g. Bring news to existing brands when there is otherwise nothing new to say about them.
Risk - In reality, if a brand extension is so off target or lacks fit and or leverage, it likely will fail and do little damage. Most of these misfires die in limited test market anyway. There can be real damage to the parent brand, however, when too many unrelated brand extensions are launched. Names like Betty Crocker, General Electric and Kraft have been extended profusely. While they have not lost their awareness as household words, the strong associations they once had to specific products and related qualities (e.g. cake mix, light bulbs and cheese) may be diluted. This is especially dangerous when a brand is used synonymously with a specific product. Brands that are not legally generic but are used that way such as Kleenex, Scotch (Tape), and Band-Aid should not be extended broadly or they risk losing this valuable quality.
Section B 3
Section B 4