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By the efficient use of trained staff and getting possible benefits from customers brand loyalty towards MMBC
make it unique from its competitors. Past strong position of the company with the title of the best brewing in the
“West Virginia” support MM Lager, the core product of the company to break into new marketplaces for the
greater exposure and growth in the new markets. MMBC didn’t follow it competitor’s receipt for their product,
therefore, they have the unique taste and quality to entertain its customer based requirements. (Tobey, 2010)
Besides the strong brand recognition along with customer’s perception of good quality from the MMBC still, it’s
declined in its revenue in 2001 because of overall downfall in the beer industry in U.S per capita consumption
with the increasing of competitor’s product such as spiritbased drinks and wines. As this MMBC brand is
popular in working class they perceive it as high quality and upperclass status product as compared to Miller
and Budweiser. Through this MMBC can gain its higher return as compared to its competitors without going into
deep competition with the competitors. (Tobey, 2010)
It was suggested that company should expand its product line beyond the Lager beer to compete within the
competitive environment because it was decreased its overall sale revenue by 2% as compared with the
previous year. No doubt there is majority type of customers who has been chosen MMBC brand by their heart
but still there was a decline in that segment of the customer and also distributors were preferred other new
entrants in the market for a large number of sales commission earnings. It makes hard to compete in the
competitive environment with a single line of a product among the competitors offering the number of product
lines. Also, new consumers are only in that number which is MMBC has currently in its fraction of current
customers.
Current Situation
Another uncontrollable circumstance which leads towards company’s cost of product increase is extra taxes
and increase in the raw material price of the product. As company bears more cost which is unavoidable and
enable the company to absorb it without pass it on their customers. So buyers which have a capacity to buy
more in fewer prices now has less power of purchasing the same product with the high price so demand is
contracted due to this factor which ultimately has the impact on the sales revenue of the MMBC overall. (Tobey,
2010)
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a position to bear the capital expenditure to launch its new product line. Although by introducing the new
product line with the name of light MM can deteriorate the sales revenue of the Lager Beer and also damage
the brand loyalty among the existing customers of the company. Therefore MMBC management is going to
evaluate its decision through Financial Management by evaluating it through SWOT Analysis of the company.
(Wera, 2014)
SWOT Analysis
According to the SWOT Analysis of the MMBC whether it is seen more weaknesses and threats but still it’s out
weight against the strength of the company is less. It is seen that more than 50% of the total sales would
generate from the Light MM which ultimately increases the market share of the company in the marketplace.
Major strength of MMBC is its brand name but it threat is from competitors in the market which are already in
growing phase. Opportunities lies with the attraction of new customers towards company beyond the blue collar
class it can be in access of common person as a company’s customer. Major threat for the company is the
canalization risk of major product of the company.(Mountain Man Brewing Case Analysis)
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Recommendation
For companies, it is always a great risk to introduce its new product with the threat of forgoing sales of its
existing flagging product. But the market trends and customers behaviors towards a specific product and their
lifestyle demand the alteration in MMBC product line.
To compete in competitive environment MMBC should consider its customer’s needs and demands for the new
product. Through MM light launch MMBC can cope with its major threat of not attracting new customers
towards the company which is the major reason for declining the sales revenue of the company over the years.
By launching Light MM MMBC can attract new customer based on its competitors.(Wera, 2014)
Company should introduce its new product Light MM with proper marketing mix of 4p’s (price, product,
promotion and place). Light MM product should marketing through social and online media so that customers of
new age group can easily know about new product of the company.
Initially MMBC should give price offers for MM Light for its retailers to promote their product actively. MM Light
marketing is needed to display it on the prime locations of pub and bars where new customers based can be
target directly.(Wera, 2014).
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