Mountain Man Case Memo

Mountain Man Case Memo - Group 3

Exhibit 1- Alternative Evaluations for Company A

Outcome* Ratings of each alternative strategy/solution***

Importance Weight** Mountain Man Light New name/ logo Premium Beer

Will capture new younger market 5 15 10 5

Uses our strengths ie Brand name 4 12 4 8

Will not alienate current blue collar market 3 3 9 6

Has most potential in overall beer market 2 6 4 1

Has most potential to earn revenue with current target market 1 1 2 3

Sum 37 29 23

Summary

At present the most important goal for MMBC is to put an end to the declining revenues and the main impediment to achieving this goal is the current state of decline in their market.

The best solution for achieving the above goal, is to introduce the Mountain Man Light product. Currently, light beer represents 50.4% of volume sales and is growing. This product would be marketed toward the 21–27 year old age group, accounting for 27% of beer consumption.

Problem Analysis

Introducing a new product to curtail the loss of market share to competitors.

The shrinking of their current target market is the key impediment because it is dwindling due to factors such as an aging population and people switching to other options (spirits and light beer).

Solution Analysis

We can consider the following strategies based on our evaluation of the situation.

• Introduce Mountain Man Light and focus a majority of sales and promotions at younger areas such as bar scenes to capture a younger, separate, target market.

• Introduce the light beer under a new name /look saying it is made by Mountain Man as too not affect the current market or brand.

• Create a new premium beer (19.7% of beer market) to attract a large audience while not offending the current blue collar market.

Best Solution

Introduce Mountain Man Light and focus a majority of advertising and promotions at younger areas such as sporting events, bars, etc., to capture a younger, separate,...