Mountain Man Case
Review Case Analysis Recommendations
This is a practice case that addresses whether a beer company should introduce a brand extension in response to changing competitor strategies and customer tastes. Read the case, define the problem, and identify the alternative solutions and key issues. Then complete the Mountain Man Excel spreadsheet. Start with the MMLagerDecline worksheet and fill in the key assumptions that are highlighted in yellow. Note that several assumptions are optional, for example, price changes, cost changes, etc. The spreadsheet should fill in as you enter these numbers. Constructing spreadsheets in this manner is important because it allows you to conduct “What-if” analyses by simply changing your assumptions. Be sure to complete the Summary worksheet after completing the other worksheets.
As you are working through the Mountain Man Excel spreadsheet, be sure to consider the following questions.
• What has made Mountain Man Lager successful (Is it successful?)? What is its competitive advantage? Who are its customers… its key competitors? What has caused Mountain Man Lager’s decline in spite of its strong brand?
• What are (or should be) the objectives for Mountain Man Lager over the next 2-5 years? Is negative growth for MM Lager acceptable?
• How would introduction of MM Light affect these MM Lager objectives? Specifically, what level of cannibalization do you predict?
• What are (or should be) the marketing and financial (e.g., breakeven) objectives? Can MM Light achieve those objectives?
• Who would be the target customers & competitors for MM Light?
• What marketing capabilities are necessary to make a MM Light introduction successful? Does Mountain Man currently possess these capabilities?