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Individual Write Up- MMBC

Individual Write Up- MMBC

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Published by mradulraj

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Published by: mradulraj on Dec 14, 2009
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Mountain Man Brewing Company- Bringing the Brand to light
Brand Management Case Analysis Section BMradul Raj Pachouri 08BS0001794
Mountain ManBrewingCompany-BringingtheBrand tolight
December 2
2009
 This Document is a case analysis of the case of Mountain ManBrewing Company. The document is about dilemma of Mountain Man Management, option available and strategiesthat are suggested for resolving the dilemma.
Submittedby-MradulRaj Pachouri08BS0001794
 
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 thedecisions & strategy. American Beer Industry itself is a symbol of oligopoly where few brandwith their different variants trying to capture new market as well as on the same time retainingthe older ones. Mountain Man Brewing Company (MMBC) also known as “West Virginia’sBeer, a symbol of toughness, Authenticity, quality and uniqueness. First time ever in thehistory, Company is facing drop in sell which makes the management sweat a bit. The reasonis the changing taste and preferences of the American customers. This Industry is going for Lager to light demand shift as strong beer consumers are vanishing with time whereas younggeneration segment is increasing and their choice is Light. The case is very interesting wherecompany is finding itself in a junction from where they have to take a decision which is verycritical for the survival in this rapid changing hypercompetitive marketing.Companies like Mountain Man Lager which has a strong association with blue collar, Middle toLower Income men over age 45. These are the core drinker for MMBC which are very muchloyal over the long period. They are loyal for such a strong drink due to many reasons liketaste, toughness and availability. Now company is worried about Brand Equity if they will gofor a growing beer sector which is Light.
Brand Management Case Analysis Section BMradul Raj Pachouri 08BS0001794
MBC Ma
 
nagement- Reasons for Dilemmaight segment beer segment which is growing at a very fast pace?Mountain Man (Umbrella Branding)/New Name (Private labeling, New Producthen what will be strategy to enter in this segment if entered?
 
Mountain Man Brewing Company- Bringing the Brand to light
 
Let’s try to answer these questions one by one
1.
 YES
-
I think change is the only thing that is permanent. Everything moves frommanufacturer to Consumer end. So its important that only those things will be producedwhich are needed by the consumer. We are not saying to just close down theproduction of its current operations and go for a new light version. We are sayingcompany needs a gradual change from lager to Light over the period of time. Becauseits need of the hour. When we can see the four percent compound growth in this newsegment and on the same time we can see the same decline in lager consumption. It istime to take the necessary steps. Because either you have to change with changingneeds 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 optionfor reaping the benefit from your brand equity provided it doesn’t create brand confusion andbrand conflict.Now let’s try to know pros and con if we use Brand extension (umbrella Branding) for asuccessful Product.
Advantages
a.Identify logical new product possibilities.b.Capitalize on the paid-for equity in established brand names.c.Enable a company to enter new categories at significantly lower cost.d.Reduce the risk of failure given the already established awareness and trust.
e.
Create a positive synergistic effect with the efficiencies of umbrella branding andadvertising.f.Reinforce the consumers’ perceptions of the parent brand name.g.Bring news to existing brands when there is otherwise nothing new to say aboutthem.
Risk
- In reality, if a brand extension is so off target or lacks fit and or leverage, it likelywill 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 unrelatedbrand extensions are launched. Names like Betty Crocker, General Electric and Krafthave been extended profusely. While they have not lost their awareness as householdwords, 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 dangerouswhen a brand is used synonymously with a specific product. Brands that are not legallygeneric but are used that way such as Kleenex, Scotch (Tape), and Band-Aid shouldnot be extended broadly or they risk losing this valuable quality.
Brand Management Case Analysis Section BMradul Raj Pachouri 08BS0001794

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