Mountain Man Final Write-up

Mountain Man Final Write-up - Product Marketing Plan...

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Product Marketing Plan – Implementation of Mountain Man Light By: Nissan Patel | Gordon Toon | Haoyang Huang | Maria Gonzalez
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Mountain Man Brewing Company (MMBC) is a regional, family-owned brewery in West Virginia. Mountain Man Lager (MM Lager) , the only brand of the company, was perceived as “tough” and “working man’s” beer that won loyal customers in the core segment of blue-collar, middle-to-lower income men over age 45. However, the company is facing the pressure of sales decline. In 2005, their revenues decreased by 2% compared to the last fiscal year. This is most likely due to both the 2.3% decrease in per capita US beer sales since 2001 and the increasing market for light beer that accounted for 50.4% of volume sales in 2005, compared to 29.8% in 2001. These changes were driven by a key transformation in the consumer segment: an increase in young drinkers aged 21-27 who tend to prefer light beer to other varieties. The company remains profitable, but continued market trends might cause difficulty for the company in the near future (Mountain Man Brewing Company, 2007). Faced with the Prangel legacy and inheritance of the company, Chris Prangel, thinks that launching a light beer will attract a younger market segment. Others on the MMBC management team currently challenge this because they think that a light beer may stray away from the current brand strategy. The MMBC management team also feels that launching a light beer would be very expensive and could hurt Mountain Man’s key customer base and brand equity created through a grass roots and word-of-mouth marketing mix (Mountain Man Brewing Company, 2007). If Chris Prangel decides to exclusively continue with the core representation, production, and sales of MM Lager, the company would retain its target market and avoid short-term risks. By doing nothing new, they would also avoid expenses in S&GA, advertising, and the initial net loss in revenue for MM Lager due to the introduction of a new light beer. However, the company faces long-term losses that could lead to bankruptcy from their 2% decrease in annual revenue (Appendix 1). This is due to the lack of growth in the traditional premium beer market as well as the company’s inability to adapt to the changing demographics and increased preference for light beers. Another alternative would be to re-brand the current lager from its blue-collar perception and attempt to incorporate it in a younger market segment as a modern drink. This strategy would be a cheaper alternative in comparison to launching a light beer. However, by rebranding MM Lager, the company runs the risk of losing its core target audience and revenues. In
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