1. Why is MMBC in trouble?
MMBC is in trouble its sales for Mountain Man Lager are on a decreasing trend. As result, Chris Prangel the manager of marketing operations wants the company to launch Mountain Man Light in place of Mountain Man larger. The difference between the two is that Mountain Man Light is very light as compared to the other brand. As a result, the drinkers’ preferences show a shift to light brands especially the young drinkers. The company is thus in a dilemma on whether to launch the new brand or not.
2: Would you recommend MMBC to launch Mountain Man Light?
I would not recommend MMBC to launch Mountain Man Light brand but to keep the Mountain Light Lager. Launching the brand will have various pros and cons to the company. First, it will help the company meet the changing customer services. In addition, it will help the company improve its declining sales. However, launching the new brand will increase cost to the company, it will also kill the old brand, it will never reach the sales of the old brand and finally, the new brand will face stiff competition from other light brands in the market. The disadvantages outweigh the advantages of launching the product.
At this particular context, market segmentation is vital for the company. The company thus needs to focus on behavioral segmentation where it will have to segment a market for the old drinkers and a market for young drinkers. In addition, the company needs to use other marketing strategies to improve its sales revenue for the Mountain man Lager brand. Some of these strategies may include the use of advertising appeal to woe customers to buy more of the old brand. Branding the Mountain Man Lager by changing the bottles and other features would also play a great role towards improving the situation.