Project for Week 9
Chris Prangel, a recent MBA graduate, offers returned home to West Virginia to control the promoting operations of the Mountain Person Beer Company, a family-owned business he stands to inherit in five years. Mountain Gentleman brews just one beer, Huge batch Man Lager, also known as " West Virginia's beer" and popular among blue-collar workers. Due to changes in dark beer drinkers' taste preferences, the corporation is now suffering from declining product sales for the first time in its history. In response, Chris desires to launch Pile Man Light, a " light beer" formulation of Mountain Gentleman Lager, in the hope of attracting young drinkers to the brand. Nevertheless , he encounters resistance by senior managers. Mountain Gentleman Lager's company equity is actually a key asset for Mountain Man Preparing Company. The question is whether Pile Man Light will improve it, detract from that, or irreversibly damage that. Learning Goal:
To explore company equity: its creation and using brands as systems for expansion; the risks and benefits of a product or service line file format (including congruent vs . incongruent extensions) employing an existing brand name; and the principles of cannibalization and company alienation. To train marginal examination, breakeven evaluation, net present value (NPV) analysis, and sensitivity examination, emphasizing the issue in selecting between qualitative and quantitative information to make key ideal decisions. Subjects Covered:
Company equity; Brand management; Breakeven analysis; Client marketing; Demographics; Forecasting; Margins; Marketing; Metrics; Present benefit; Product difference; Quantitative examination Setting:
2. Geographic: В West Virginia
5. Industry: В Alcoholic beverages
Difficulty Statement: В В
Mountain Gentleman Brewing (MMB) has been powerful with merely one beer, Huge batch Man Beer, but usage has lowered. В The decrease in revenue for this ale has triggered a decrease in profits, since it is their particular only product. В Pile Man must consider a difference in their setting strategy to boost sales and profits to keep the business good.
Alternative #1: В Create, promote and sell Mountain Man Lager Light Advantages: В It gives them the application of their brand that is currently well known and liked within their current market region. В It creates a light dark beer for the younger target market that drinks mild beers. Downsides: В It could possibly result in buyers switching via regular to light, which would lower sales in the Lager much more to cannibalize that merchandise. В It could possibly also produce customers disappointed with them following the trends. В It might not even reduce the competition to get the major term brands. They will risk shedding their current reputation if you are unique with a stand-alone product, which may also push devoted customers apart.
Alternative #2: В Make, promote and sell a new light beverage, but make use of a different term В В Benefits: It won't remove from the term of the Hill Man Basis. It nonetheless gives these people a product that is far more common for the new marketplace of more youthful drinkers. It offers them to be able to purse the larger market pertaining to light drinks that has significantly grown. В В Cons: В It may continue to take away from other own Beer beer with current consumers switching to the light beer. В It still could hardly reduce the power of the main competitors, whenever, so it is not going to pull apart a large amount of their particular competitors' revenue to their very own product. В
Alternative #3: В Maintain only the Beer beer and broaden the target market in to more StatesВ Pros: That keeps their product concentrate on their powerful beer and keeps them unique. В It maintains them from having to produce something new and start from scratch...
Mountain Man Preparing Company
Pile Man Preparing Company (MMBC) also known as " West Virginia's BeerвЂќ. MMBC developed it is brand fairness as a image of sturdiness, authenticity, quality and uniqueness this with several other factors made MMBC successful. This kind of legacy was started by Guntar Prangel in...