From Coca-Cola to Apple, to Nike, Walmart’s and McDonald’s, strong brands do not just happen. In addition to vast amounts of time and resources, brands also require a combination of core values, a clear purpose, guiding philosophy, principles and a compelling mantra to make an emotional impression on the market. Little wonder why organizations do so much to develop, promote and maintain their brand identity and presence. From million-dollar advertising budgets to consistent product research and development, these organizations understand that strong brands mean loyal customers which translates to stable revenues.
Chris was in a dilemma. His family had built a beer brand with a loyal but ageing, low income following, who usually bought their beers at liquor stores and supermarkets, thus saving money for the company from advertising and distribution costs. The beer was regarded as a working man’s beer; bitter with a higher alcohol percentage than most beers. However, this brand identity failed to capture the growing, younger population of drinkers with a significantly higher purchasing power and a preference for beers with lower alcohol content. Due to these changes in beer drinkers’ preferences, the company was now experiencing declining sales at 2% annually for the first time in the company’s history. They were being challenged by big brands with lower alcohol content that were positioned in bars and restaurants and had substantial distribution and advertising budgets.
Chris discovered that light beer was a newer, fast-growing category that was consistent with its growth. He also saw that launching a light beer brand would help position the company in restaurants and bars, premises on which they currently had no presence. Light beers were also the preferred option for younger drinkers overall, and to women, both being groups that frequented these locations. In Chris’s opinion, Mountain Man’s brand recognition could help their entry into the local light beer market and he hoped that Mountain Man Light’s popularity could eventually boost the sales of Mountain Man Lager. To do this, Chris had to set aside a huge advertising and distribution budget. He also needed to be worried about the possibility of aggressive advertising for the light beer alienating the core customers of Mountain Man, thus cannibalizing the sales of Mountain Man Lager.
There is always the pull was caught between authenticity and reinvention. Chris’s father, the company’s founder stressed the importance of a strong brand to his son with these words of advice; “Chris, I try to keep in mind all the other regional breweries that have vanished over the past 30 or 40 years….Mountain Man is still standing because we manufacture an exceptional beer with a great brand name, we’ve never lost sight of our core customer, and we’ve never been seduced by the other guy’s market.”
You don’t change a winning formula. But what happens when the wins consistently become less impressive? There comes a time for a reality check. I believe that obscurity sometimes may be the price to pay for reinvention. Successful reinvention is not certain. What is certain though, is that sales are declining. Before they are completely eroded, adjustments have to be made. On a ‘lighter’ note, this old dog needs to learn new tricks, and fast!
