The three targeting criteria for points of parity and differentiating are Potential, fit and defensibility. Potential means the firm’s ability to tap into market; Fit means the match between the market and the firm’s capabilities. And defensibility means how well company can define its position.
Potential: Overall, the light beer segment has tremendous potential. In east central region, the consumption of light beer is 50.4% compared to 19.7% for premium beer. The market also has an increase rate of 4% annually compared to a 4% decrease for premium beer. In the meantime, Mountain man …show more content…
Also,. The segment (young drinkers, 21–27 years of age) represented about 13% of the adult population in 2005, but accounted for more than 27% of total beer consumption and was growing. In addition, this age group spent twice as much per capita on alcoholic beverages than consumers over 35 years of age and was forecasted to grow by nearly four million by the year 2010. Introduction of MMBC light will be capture part of this young and coming market when they haven’t developed a brand loyalty yet.
Opportunity to add another competitive advantage. Given MMBC has already establish a great brand loyalty among age group +45. It’s possible to send out marketing message as “the unique brand with offer two generations of people the same high quality, authentic beer with your preferred flavor”. It’s more of a family bonding message which encourage the celebration of family, tradition in the family and between generations. This is going to add onto MMBC’s existing competitive advantage which is authentic, local brewed and high quality beer. Who doesn’t like the celebration of family and tradition?
Cons of introducing MMBC