Mountain Man Brewing Co - Essay Example

To earn such market presence and earning distributors in new regions would be a challenge, for which existing sales force can be mobilized to use their expertise to get more off-premise locations to sell Mountain Man Lager in other states.  Establishing a similar brand image in new markets can be accomplished by using MMBC’s brand image and history of success to convince new distributors and off-premise owners.

Some amount of market research would help in identifying customer preferences in new regions, and promotion of Mountain Man Lager can be focused on such customer segments.  Distributors and/or off-premise locations in regions that contain n better concentration of the suitable customer segments would be the ideal target market for Mountain Man Lager in new regions. 

Moreover, Mountain Man Lager’s flavor, price, and quality will be able to counter competition from existing brands in new regions. This is because this product already established itself amidst competition from imported and craft beer products in East Central Region (Abelli, 4). Mountain Man Lager can be considered as the defensible strategy for MMBC, which was not countered by other products serving this customer segment in the East Central Region for more than 50 years.   In this region, the issue was with increasing customer segments that preferred other beer product categories (light beer), which posed a threat to the sales of strong be in the East Central Region.  A similar niche can be achieved in new markets by expanding their customer base and targeting suitable customers in newer regions. 

Considering comparative costs of intra educing new product lineal to serve new customer segment to expanding existing product line into new markets would be much higher.  MMBC is not prepared to take such a risk at this point in time because their focus is to improve profitability.  This strategy will boost the sales of their core brand, which will add much value to MMBC than introducing light beer to serve new customer segments.  

To sum up, this strategy of MMBC’s expansion into new regions will be of help in 3 ways. Firstly, MMBC can focus on spreading its core brand, which had created much value and earned customer loyalty beyond expectations.  Secondly, MMBC does not have to face competition from much larger players that were all focusing on the larger base of younger population that preferred light beer.  Moreover, the existing competitors’ products in this category were from domestic brands, and not imports and crafts beer. This means, MMBC has the advantage of expanding into new markets at existing product prices.  With improving sales, investment in terms of marketing, distribution and logistics can be recovered gradually.  Thirdly, the CFO’s viewpoint that MMBC can improve profits if it expanded into new markets would be possible and their core customers can be retained as well as a greater number of customers in this segment be added.