Major strength of MMBC is its brand name but it threat is from competitors in the market which are already in growing phase. By implementing these changes it could offset the market share loss MMBC lager is currently facing. As shown in Exhibit 1 there is net income calculated from the operations of the Lager MM which can easily cover up the initial expenditures Exhibit 7 to launch the new product of Light MM. Objectives Be able to define product and know the major classifications of products and services. The key consumer segment for beer companies had shifted to younger drinkers years of age. S per capita beer consumption had declined by 2. The senior management at MMBC is reluctant to launch the new product and site the examples of over 40 breweries those have closed down.
MMLager is losing the younger generation hands down. Major strength of MMBC is its brand name but it threat is from competitors in the market which are already in growing phase. But it is important that price must not be too low in order to break even and not high fearing low sales. My presentations Profile Feedback Log out. We strongly advice launching MM Light Beer, it will be profitable under any case!
By conducting breakeven analysis we have analyzed, 94, barrels of Light MM andbarrels of Lager MM need to sell to achieve break-even point by launching the new product line. This segment preferred light beer to lager beer and thus light beer sales started gaining market share and accounted for 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.
This could imply that the light beer market is easily penetrated by a new product. View or download the Spreadsheet Analysis Here. MMBC success is based on several major factors such has brand recognition among their customers, their special family refined taste recipe for the core product of the company and its maintained quality throughout the several past years.
The chance that the MM Lager decline rate will double is very low given the fact that the MM lager brand has a great awareness and loyalty on the market.
Stkdy buttons are a little bit lower. But it is important that price must not be too low in order to break even and not high fearing low sales. We also assume that the YoY decline rate is still the same and the growth rate in the light beer market is slightly lower at 0. Also with the current situation aspects, it is anticipated that in future this decline in Lager MM continues to decline with the same ratio. In this case the project will be profitable on the second year: So this would be an opportunity cost considered for the Light MM product.
The final assumption is that the Light Beer market growth rate is only 0.
Mmbc Study | Case Study Template
We will demonstrate that launching a light beer product shows promise for improved profit through Stufy started paying more attention to higher turnover and margins thereby dropping smaller brands like Mountain Man that contributed little to bottom line.
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Also, new consumers are only in that number which is MMBC has currently in its fraction of current customers. Understand the decisions companies make regarding their.
Only those customers who are loyal to the MMCB brand use the alternatively lighter version of the MMBC products over the other available substitute in the marketplace. About project SlidePlayer Terms of Service. MMLager is losing the younger generation hands down. Although by introducing the new product line with csae name of light MM can deteriorate the sales revenue of the Lager Beer and also damage the brand loyalty among the existing customers of sutdy company. Market Research — Evaluation of Brand Extension opportunities.
The potential economic and marketing response from the major brewery competitors is daunting to a company the size of Mountain Man. Mountain Man had always relied on grass roots marketing to spread its beer quality message by word of mouth. The internet is one possibility, ,mbc on the younger generation and their anti-big-business-sentiment as a marketing tool.
They could respond in such a way casf to make doing business very difficult moving forward. Published by Terence Tucker Modified over 2 years ago.
MMBC should do something soon in order to keep up with the changing market. We will explore the pros and cons of creating a light version of the brew and other strategic options for growth if this brand extension is not launched or if the launch is unsuccessful.
Exhibit 5 shows light beer has a much greater volume than premium beer; signifying even small market penetration can mean significant volumes. Advertising would also add to the burden of MMLight. This high quality lager is known for its dark color, distinct bitter taste and slightly higher alcohol content. MMBC should also look to expand their distribution range to acquire more states in the U. As this MMBC brand is popular in working class they perceive it as high quality and upper-class status product as compared to Miller and Budweiser.