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  1. 1. Light Brew<br />Group E – Carol – George – Miguel – Pablo Rodrigo - Sebastian <br />
  2. 2. Presentation Format<br />Light Beer<br />SWOT<br />Competition<br />Decision<br /> Situational Analysis<br /> The Status Quo<br /> Prognosis<br />Mountain Man <br />Light Brew<br />Implementation plan<br />Contingency Plan<br />Product Strategy<br /> Alternative <br /> Options <br />KPI’s<br />Ads <br />
  3. 3. The Mountain Man Heritage<br />Founded in 1925 in West Virginia and grew to strong regional brand by 1960<br />High alcohol content beer for blue collar market, with dark brown bottle and bitter taste. The Working man’s beer <br />High Brand recall percentage. Winner of several prestigious brewing awards <br />
  4. 4. Competitive Landscape<br />Major Domestic Producers<br />Second Tier Domestic Producers<br />12.5%<br />42%<br />23%<br />MMB<br />MMB 1.4%<br />9%<br />12%<br />1.5%<br />Importer Beer Companies<br />Craft Beer Industry<br />
  5. 5. Situational Analysis<br />Revenue decline of 2% annually due to changes in customer preferences<br />Aging customer base of 55-65 spending less and shrinking<br />70% of sales through off-premise location witnessing increasing pressure from larger producer<br />
  6. 6. Situational Analysis<br />Revenue in the Light Beer segment increasing 4% annually<br />Younger market account for 27% of total category spending<br />Younger demographic are in loyalty development phase<br />
  7. 7. Trend Analysis -Lager<br />3M<br />19% <br />Female<br /> 81% Males <br />32% <br />45-54<br />19% <br />55-64<br />2M<br />13% <br />65+<br />19%<br />35-45<br />15%<br />25-35<br />2% <br />21+<br />1M<br />2005<br />2006<br />2007<br />2008<br />2009<br />2010<br />
  8. 8. Trend Analysis –Light Beer <br />Barrels<br />23M<br />58% Male<br />42% Female <br />24% <br />35-44<br />22M<br />22%<br />45-55<br />20%<br />25-34<br />21M<br />14%<br />55-64<br />20M<br />12%<br />65+<br />9%<br />21-24<br />19M<br />18M<br />2005<br />2006<br />2007<br />2008<br />2009<br />2010<br />
  9. 9. Prognosis + recommendations<br />70% of sales through off-premise location witnessing increasing pressure from larger producer<br />Customer trends and declining sales show need for new revenue stream other then Lager<br />
  10. 10. SWOT – strengths <br />Build on current brand equity for faster brand awareness<br />0.25%<br />Ability to leverage awards as “American Champion Lager” <br />History of success in low cost grass roots marketing<br />Awareness<br />Ability to build on anti-corporate image and “red-neck is cool” trend <br />Advertising dollars invested<br />
  11. 11. SWOT – weaknesses <br />New brand extension will spread already thin resources of the company<br />Company does not have the budget to compete in the light beer advertising market<br />
  12. 12. Status Quo<br />SWOT - Opportunity<br />Light Brew<br />Opportunity to reach younger demographic<br />And increase lifetime customer value<br />Opportunity to reach younger demographic<br />And increase lifetime customer value<br />Opportunity to capture part of the 19.5 M barrels forecasted to sell in 2006 - $$<br />Could break even in 95,200 Barrels or 2.4 years<br />
  13. 13. SWOT – Threat<br /> Strategic response of competition could drown out any promotional campaign of MMBC <br />Risk of canalization of core brand<br /> Alienation of core customer through new brand that might not be inline with their aspirations of MMBC<br />
  14. 14. Status Quo<br />Decision<br />Light Brew<br />
  15. 15. Positioning <br />Alcohol %<br /><ul><li>A premium higher price light beer poses an interesting market space.</li></ul>- Going too light is not the answer to a brand extension<br />- Best location product wise. Capitalize on anti-corporate<br />-Best product location. <br />Capitalize on anti-corporate<br />PRICE<br />- Does not solve light beer issue and we don’t want to compete on price<br />Coors <br />light<br />Natural light<br />Michelob Ultra<br />Bud light<br />Miller light<br />Busch light<br />Budweiser<br />Miller<br />Coors<br />
  16. 16. Competitive Landscape<br />
  17. 17. Branding <br />Light Brew<br />Brand <br />Stories<br />MMBC<br />Pop Culture<br />Brand Culture <br />Heritage and Quality in a beer, for real people. <br />Brand <br />Stories<br />Brand<br />Stories<br />Brand <br />Stories<br />Influencers<br />Customers<br />
  18. 18. Execution plan<br />
  19. 19. Product Strategy - product<br />Light Brew<br />Brand Name<br />“Light Brew”<br />- Point of differentiation in Light Beer” market<br />- Market of quality to refer to Brew instead of “Beer” <br />- Builds on the MMBC brand name as brand extension<br />Label <br /><ul><li>“Retro cool” focus with fresh snow capped mts.
  20. 20. Bold colors and label to stand out at retail and bars
  21. 21. Mention of award won as brand equity builder </li></ul>Twist off cap<br /><ul><li> New twist off cap to cater to college market and football tail gate culture of university football in East
  22. 22. Under side of cap will feature Anti-Corporate quotes</li></ul>Bottle <br /><ul><li> Green tint with lighter color then previous bottle</li></ul>- Communicates lighter filling and alcohol content of the new brand extension<br />
  23. 23. Product Strategy - promotion<br />West Virginia Pride campaign – I AM VIRGINIA <br />Hundreds of Universities in Central Eastern Region from 5K to +40K students<br />Bar mats to be given to all bars in partner locations carrying Light brew and MMB<br />Promotional staff to visit university bars and social areas<br />WV BEER<br />Anti – Trend promotional strategy making country “cool”<br />Target promotion to University areas and promotional sponsorship of student events<br />Bar mats also give to all retail location selling to infiltrate other product purchases<br />Competition among co-eds to be official in “Light Brew” promo calendar <br />Building on anti-corporate brand equity as a beer of honest quality<br />Fraternity and Sorority associations<br />Promotional material to cover all partner retailers<br />Promo girls to have small giver aways with MMBC Light Brew branding<br />
  24. 24. Product Strategy –Permission promo<br />Permission Marketing getting customer involved in our brand and connecting other customers<br />Mountain Man Memories – <br /><br />Great Man Moments – Saluting greatness of being a man<br /><br />
  25. 25. Product Strategy -place<br />Experts see brand extensions as good method of focusing distributers and gaining shelf space <br />Need to increase distribution among bars which is only 30% of current sales <br />On-premise locations are frequented by younger target market<br />
  26. 26. Product Strategy -price<br />
  27. 27. Contingency plan<br />
  28. 28. Continual performance <br />Sales<br />Awareness<br />Shelf space<br />% of 35-34 MKT<br />New On premise locations<br />
  29. 29. Continual performance <br />