Case Essay

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Issue Analysis The most important issue that Mountain Man is facing is that the revenue is decreased by 2%. Moreover 70% of sales through off-premise location is witnessing increasing pressure from competitors. They are also struggling to maintain shares of the market segment against domestic breweries. Recently Mountain Man has come to the decision to produce light beers. The impact of Mountain Man light is also going to be an issue to consider on sales of Mountain Man Lager. Factors to Be Considered If Mountain Man produces light beer they will face competition with domestic producers like Anheuser Busch, Coors and Miller that have market share of 75% in premium beer and 84% in light beer. Domestic producers such as Pabst and Genessee take 12% of the market following with import beer companies like Heineken and Corona with the same percentage in the market share. Craft beers are next with 1.5% of the market. On the other hand Mountain Man has an advantage as well because they have built brand awareness. Research supports that Mountain Man was as recognizable as Chevrolet and John Deere to their customers. Options Available Introducing a light beer has an advantage in terms of bringing a steady growth of 4% of light beer each year. This will in fact has a significant impact on the young customers of beer because they have not yet established loyalty to the brand. As mentioned in the article “ Most industry observers agreed that the key consumer segment for beer companies was younger drinkers, 21-27 years of age. Also light beer is accounted for 50.4% of volume sales in 2005, compared with 29.8% in 2001. On the negative side MNBC is taking the risk of alienating their core customer base and diluting the mountain man brand. This has a huge impact on the brand erosion that they should tackle. Another problem is the product cannibalization because shelf

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