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Light Brew Group E – Carol – George – Miguel – Pablo Rodrigo - Sebastian
Presentation Format Light Beer SWOT Competition Decision       Situational               Analysis  The Status Quo  Prognosis Mountain Man  Light Brew Implementation plan Contingency Plan Product Strategy        Alternative                 Options  KPI’s Ads
The Mountain Man Heritage Founded in 1925 in West Virginia and grew to strong regional brand by 1960 High alcohol content beer for blue collar market, with dark brown bottle and bitter taste. The Working man’s beer  High Brand recall percentage. Winner of several prestigious brewing awards
Competitive Landscape Major Domestic Producers Second Tier Domestic Producers 12.5% 42% 23% MMB MMB 1.4% 9% 12% 1.5% Importer Beer Companies Craft Beer Industry
Situational Analysis Revenue decline of 2% annually due to changes in customer preferences Aging customer base of 55-65 spending less and shrinking 70% of sales through off-premise location witnessing increasing pressure from larger producer
Situational Analysis Revenue in the Light Beer segment increasing 4% annually Younger market account for 27% of total category spending Younger demographic are in loyalty development phase
Trend Analysis -Lager 3M 19%  Female                                      81% Males      32%  45-54 19%  55-64 2M 13%  65+ 19% 35-45 15% 25-35 2%  21+ 1M 2005 2006 2007 2008 2009 2010
Trend Analysis –Light Beer  Barrels 23M 58% Male 42% Female  24%  35-44 22M 22% 45-55 20% 25-34 21M 14% 55-64 20M 12% 65+ 9% 21-24 19M 18M 2005 2006 2007 2008 2009 2010
Prognosis + recommendations 70% of sales through off-premise location witnessing increasing pressure from larger producer Customer trends and declining sales show need for new revenue stream other then Lager
SWOT – strengths  Build on current brand equity for faster brand awareness 0.25% Ability to leverage awards as “American Champion Lager”  History of success in low cost grass roots marketing Awareness Ability to build on anti-corporate image and “red-neck is cool” trend  Advertising dollars invested
SWOT – weaknesses  New brand extension will spread already thin resources of the company Company does not have the budget to compete in the light beer advertising market
Status Quo SWOT - Opportunity Light Brew Opportunity to reach younger demographic And increase lifetime customer value Opportunity to reach younger demographic And increase lifetime customer value Opportunity to capture part of the 19.5 M barrels forecasted to sell in 2006 - $$ Could break even in 95,200 Barrels or 2.4 years
SWOT – Threat    Strategic response of competition could drown out any promotional campaign of MMBC  Risk of canalization of core brand    Alienation of core customer through new brand that might not be inline with their aspirations of MMBC
Status Quo Decision Light Brew
Positioning  Alcohol % ,[object Object],- Going too light is not the answer to a brand extension - Best location product wise. Capitalize on anti-corporate -Best product location.  Capitalize on anti-corporate PRICE - Does not solve light beer issue and we don’t want to compete on price Coors  light Natural light Michelob Ultra Bud light Miller light Busch light Budweiser Miller Coors
Competitive Landscape
Branding  Light Brew Brand  Stories MMBC Pop Culture Brand Culture  Heritage and Quality in a beer, for real people.  Brand  Stories Brand Stories Brand  Stories Influencers Customers
Execution plan
Product Strategy - product Light Brew Brand Name “Light Brew” - Point of differentiation in Light Beer” market - Market of quality to refer to Brew instead of “Beer”  -  Builds on the MMBC brand name as brand  extension Label  ,[object Object]
 Bold colors and label to stand out at retail and bars
 Mention of award won as brand equity builder  Twist off cap ,[object Object]
 Under side of cap will feature Anti-Corporate quotesBottle  ,[object Object],- Communicates lighter filling and alcohol content of the new brand extension
Product Strategy - promotion West Virginia Pride campaign – I AM VIRGINIA   Hundreds of Universities in Central Eastern Region from 5K to +40K students Bar mats to be given to all bars in partner locations carrying Light brew and MMB Promotional staff to visit university bars and social areas WV BEER Anti – Trend promotional strategy making country “cool” Target promotion to University areas and promotional sponsorship of student events Bar mats also give to all retail location selling to infiltrate other product purchases Competition among co-eds to be official in “Light Brew” promo calendar  Building on anti-corporate brand equity as a beer of honest quality Fraternity and  Sorority associations Promotional material to cover all partner retailers Promo girls to have small giver aways with MMBC Light Brew branding
Product Strategy –Permission promo Permission Marketing getting customer involved in our brand and connecting other customers Mountain Man Memories –  http://www.youtube.com/watch?v=6B26asyGKDo Great Man Moments – Saluting greatness of being a man http://www.youtube.com/watch?v=P0Gc9zRFL2o&feature=related
Product Strategy -place Experts see brand extensions as good method of focusing distributers and gaining shelf space  Need to increase distribution among bars which is only 30% of current sales  On-premise locations are frequented by younger target market
Product Strategy -price

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Mmbc

  • 1. Light Brew Group E – Carol – George – Miguel – Pablo Rodrigo - Sebastian
  • 2. Presentation Format Light Beer SWOT Competition Decision Situational Analysis The Status Quo Prognosis Mountain Man Light Brew Implementation plan Contingency Plan Product Strategy Alternative Options KPI’s Ads
  • 3. The Mountain Man Heritage Founded in 1925 in West Virginia and grew to strong regional brand by 1960 High alcohol content beer for blue collar market, with dark brown bottle and bitter taste. The Working man’s beer High Brand recall percentage. Winner of several prestigious brewing awards
  • 4. Competitive Landscape Major Domestic Producers Second Tier Domestic Producers 12.5% 42% 23% MMB MMB 1.4% 9% 12% 1.5% Importer Beer Companies Craft Beer Industry
  • 5. Situational Analysis Revenue decline of 2% annually due to changes in customer preferences Aging customer base of 55-65 spending less and shrinking 70% of sales through off-premise location witnessing increasing pressure from larger producer
  • 6. Situational Analysis Revenue in the Light Beer segment increasing 4% annually Younger market account for 27% of total category spending Younger demographic are in loyalty development phase
  • 7. Trend Analysis -Lager 3M 19% Female 81% Males 32% 45-54 19% 55-64 2M 13% 65+ 19% 35-45 15% 25-35 2% 21+ 1M 2005 2006 2007 2008 2009 2010
  • 8. Trend Analysis –Light Beer Barrels 23M 58% Male 42% Female 24% 35-44 22M 22% 45-55 20% 25-34 21M 14% 55-64 20M 12% 65+ 9% 21-24 19M 18M 2005 2006 2007 2008 2009 2010
  • 9. Prognosis + recommendations 70% of sales through off-premise location witnessing increasing pressure from larger producer Customer trends and declining sales show need for new revenue stream other then Lager
  • 10. SWOT – strengths Build on current brand equity for faster brand awareness 0.25% Ability to leverage awards as “American Champion Lager” History of success in low cost grass roots marketing Awareness Ability to build on anti-corporate image and “red-neck is cool” trend Advertising dollars invested
  • 11. SWOT – weaknesses New brand extension will spread already thin resources of the company Company does not have the budget to compete in the light beer advertising market
  • 12. Status Quo SWOT - Opportunity Light Brew Opportunity to reach younger demographic And increase lifetime customer value Opportunity to reach younger demographic And increase lifetime customer value Opportunity to capture part of the 19.5 M barrels forecasted to sell in 2006 - $$ Could break even in 95,200 Barrels or 2.4 years
  • 13. SWOT – Threat Strategic response of competition could drown out any promotional campaign of MMBC Risk of canalization of core brand Alienation of core customer through new brand that might not be inline with their aspirations of MMBC
  • 14. Status Quo Decision Light Brew
  • 15.
  • 17. Branding Light Brew Brand Stories MMBC Pop Culture Brand Culture Heritage and Quality in a beer, for real people. Brand Stories Brand Stories Brand Stories Influencers Customers
  • 19.
  • 20. Bold colors and label to stand out at retail and bars
  • 21.
  • 22.
  • 23. Product Strategy - promotion West Virginia Pride campaign – I AM VIRGINIA Hundreds of Universities in Central Eastern Region from 5K to +40K students Bar mats to be given to all bars in partner locations carrying Light brew and MMB Promotional staff to visit university bars and social areas WV BEER Anti – Trend promotional strategy making country “cool” Target promotion to University areas and promotional sponsorship of student events Bar mats also give to all retail location selling to infiltrate other product purchases Competition among co-eds to be official in “Light Brew” promo calendar Building on anti-corporate brand equity as a beer of honest quality Fraternity and Sorority associations Promotional material to cover all partner retailers Promo girls to have small giver aways with MMBC Light Brew branding
  • 24. Product Strategy –Permission promo Permission Marketing getting customer involved in our brand and connecting other customers Mountain Man Memories – http://www.youtube.com/watch?v=6B26asyGKDo Great Man Moments – Saluting greatness of being a man http://www.youtube.com/watch?v=P0Gc9zRFL2o&feature=related
  • 25. Product Strategy -place Experts see brand extensions as good method of focusing distributers and gaining shelf space Need to increase distribution among bars which is only 30% of current sales On-premise locations are frequented by younger target market
  • 28. Continual performance Sales Awareness Shelf space % of 35-34 MKT New On premise locations