Mountain Man Brewing Company- Bringing the Brand to light
Mountai n Man Brewing Compan yBringing the Brand to light
December 2
2009
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.
Brand Management Management Case Analysis Mradul Raj Pachouri 08BS0001794 08BS0001794
Section B
Submitted by-Mradul Raj Pachouri 08BS000179 4
Mountain Man Brewing Company- Bringing the Brand to light
T
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 older ones. ones. Mountai Mountain n Man Brewing Brewing Company Company (MMBC) (MMBC) also known as “West “West Virginia Virginia’s ’s Beer, Beer, a symbol symbol of toughne toughness, ss, Authenticit Authenticity, y, quality quality and uniquene uniqueness. ss. First time time ever ever in the history, Company Company is facing drop in sell which makes the management 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 consumers are vanishing vanishing with time whereas young generation generation segment is increasing increasing and their choice is Light. The case is very interesting 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.
MBC ManagementManagement- Reasons for Dilemma ight segment beer segment which is growing at a very fast pace? Mountain Man (Umbrella Branding)/New Name (Private labeling, New Produc then what will be strategy to enter in this segment if entered?
Brand Management Management Case Analysis Mradul Raj Pachouri 08BS0001794 08BS0001794
Section B
Mountain Man Brewing Company- Bringing the Brand to light Let’s try to answer these questions one by one 1.
YES- I think think chan change ge is the only only thing thing that that is perm perman anent ent.. Every Everythi thing ng moves moves from from manufacturer to Consumer end. So its important that only those things will be produced whic which h are are need needed ed by the the cons consum umer er.. We are are not not sayi saying ng to just just clos close e down down the the production of its current operations and go for a new light version. We are saying company needs a gradual change from lager to Light over the period of time. Because its need of the hour. When we can see the four percent compound growth in this new segment and on the same time we can see the same decline in lager consumption. It is time to take the necessary steps. Because either you have to change with changing needs of customer or you will be thrown out of the market.
2. The Main Dilemma starts with the question if yes then with what name. There are two options, one is going by a Brand Extension Mountain Man Light or other is going by a name XYZ or Private Labeling. Brand extension by using Umbrella branding is generally a very good option for reaping the benefit from your brand equity provided it doesn’t create brand confusion and brand conflict. Now Now let’s let’s try to know know pros pros and and con con if we use Brand Brand exten extensio sion n (umbr (umbrell ella a Brand Brandin ing) g) for for a successful Product. Advantages
a. b. c. d.
Identify Identify logic logical al new produc productt possibili possibilities ties.. Capitalize Capitalize on the paid-for paid-for equity in establishe established d brand brand names. names. Enable a company company to enter new new categories categories at significantly significantly lower lower cost. Reduce the risk of of failure given given the already establish established ed awareness awareness and trust. efficiencies of umbrella branding branding and e. Create a positive synergistic effect with the efficiencies advertising. f. Reinforc Reinforce e the consu consumer mers’ s’ percep perception tions s of the paren parentt brand brand name. name. g. Bring Bring news to existing existing brands brands when when there there is otherwise otherwise nothing nothing new 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 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. Brand Management Management Case Analysis Mradul Raj Pachouri 08BS0001794 08BS0001794
Section B
Mountain Man Brewing Company- Bringing the Brand to light
As we know Mountain man is a symbol of toughness which is dearer to the Blue collar workers if company comes with a name like mountain man light then it will have two consequences. a) Loyal customer will think something is changed now. It can create an image that
company has not only diluted the beer but also diluted the image of toughness and strength. We have a very good example of coca cola. Beverage industry is almost same people get associated associated with the brand not the taste. So if company will go with the same name, there is a huge possibility that it will dilute the brand as well as give a setback to all MMBC brand loyal customers. b) Young Generation people know what mountain man is? But they don’t want to make it a part of their buying behavior due to two reasons. Firstly, they want their separate identity, separate drink, different from what their father and grandfather drink. They don’t want to get associated with a brand which is associated with blue collar, middle to lower income with age of 45 and above and secondly according to them it’s too tough to handle that beer which can create problem of swings while work to the fresh drinkers. So my suggestion is going with a different or slightly modified name or going with a private labeling can be a good option in this case when you don’t want to put your present in ultimate risk. Investment for future can only be done by stable revenue in present. So putting your core competency in risk is something something which is not acceptable. acceptable. You can improve or develop new competency with time but that is never suggested to kill your competency and ditch your brand loyal customers. 1. Strategy that should be adopted for branding a new product Light without diluting core
brand. Name like Mountain Young can do the trick where people take mountain as zenith or success which is tough to achieve and young can again fill the color of energy and enthusiasm. As we know that if company is going to come up with a new name it will again need some investments to create the new brand which company is not capable. so they should go with grass root marketing like better regional campaigns by the help of distributors and outlets. They have to create a buzz of their new brand by free samples in regional disc where young people go. They can also go for sponsorship of small regional events like Brand Management Management Case Analysis Mradul Raj Pachouri 08BS0001794 08BS0001794
Section B
Mountain Man Brewing Company- Bringing the Brand to light music events and parties. They can also go for music album and all those things to create a brand which will give them value for their money.
Brand Management Management Case Analysis Mradul Raj Pachouri 08BS0001794 08BS0001794
Section B
