Mountain Man Brewing Company- Bringing the Brand to light
Let’s try to answer these questions one by one
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.
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.
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.
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.
- 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