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Mountain Man Brewing Co - Essay Example

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Last name, first name Mountain Man Brewing Co. Problem Statement: Mountain Man Beer Company started experiencing declining sales, which could eventually challenge the company’s existence. This is mainly because MMBC served only one product, the Mountain Man Lager, which sustained competition from various other bigger players in the market by creating a defensible customer segment; this product was mostly preferred by the blue-collar customers in Eastern Central of the United States…
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Mountain Man Brewing Co
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Download file to see previous pages Mountain Man Lager will have to face the existing competition in new regions. Proven success with the blue-collar customer segment will help in identifying similar customer segment in new regions. Risk of losing or not establishing similar brand image in new markets amidst tough competition. Boost sales of Mountain Man Lager. Risk of not establishing market share as expected. Lack of knowledge of customers’ preferences in new markets. Roping in new distributors in the new regions will be a challenge. Increased distribution and logistics costs. Alternative two: Introduce new product line, Mountain Man Light in existing market targeting younger generations in the Eastern Central region of the US. Pros Cons Attract newer customer segment, which is already looking for products such as light beer. Risk higher costs versus profits initially. Capture diversified market segments through increased product lines. May not earn brand loyalty like MM Lager did, which might further affect brand image of MM Lager. Improve market share while banking on existing brand image of Mountain Man. Loyalty could be due to Mountain Man Lager rather than MM Light. Disloyalty towards MM Lager by its customer segments. Workload on the smaller sales force. Competition from already existing brands that have better market share. Challenge of distributors’ acceptance of the new product. Huge competition from other companies in terms of variety, costs, and brands. Recommendation: Based on the information and data, better option for improving profitability of MMBC would be to expand their core brand, Mountain Man Lager, into other markets within the US. The Mountain Man Lager had occupied 70% s off-premise sales in East Central Region and almost 60% of blue collar males were the purchasers from these locations (Abelli, 3). 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 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 better concentration of the suitable customer segments would be 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 ...Download file to see next pagesRead More
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