Mountain Man Brewing Co.

In 2006, Mountain Man Brewing Company, a family owned brewing company in West Virginia, was struggling to grow its business while staying true to its brand identity. Mountain Man was viewed as the tough man's beer. It had a very strong brand presence in its local/regional market, even being known as  "West Virginia's Beer." A typical Mountain Man customer was an older, rough, gritty, man's man, coal miner of a guy. He appreciated that his beer, the one he always drank, fit his personality and lifestyle.

With the younger son of the founder taking over MMBC from his father, he brought new ideas for how to grow the family business.

New Idea-- Introduce a new version of their signature beer, Mountain Man Light.

Pros

• gain share in on-premise locations where there are higher numbers of younger & female drinkers (not typically MM's strong customer segment)
• opportunity to attract the youthful & female segment with the "light" product description
• light beer (as a segment) is experiencing growth
• build on strength of brand & domestic packaging
• start building the MMBC brand loyalty at a much younger age (most beginning drinkers prefer lighter beers and then transition to darker beers over time)

Cons

• risk dilution of the brand
• risk alienating your current loyal customer base with the introduction of something that could be deemed threatening to their brand identification
• potential cannibalization (5%-20%) of light beer sales could come at the expense of the sales of their key lager
• expenses, start up costs, production costs
• risk of successfully acquiring the younger customer base and their willingness to accept the new MM image
• younger drinkers typically go for mass market brands

Overall, I think that there is more benefit to introducing the light beer vs not changing anything about the company at all. Companies must adapt and change with the times or they risk fading into oblivion. Not all products can stand the test of time. Although the West Virginia market is strong in its MMBC loyalty, the company can work on expanding its footprint outside the coal mining towns of the Appalachian Mountains by introducing a newer, lighter brew to the market.

The Google Store

I read this interesting article on Mashable today that really got me thinking about a company that we all interact with multiple times a day. Google. (In fact, I realized now that I actually used Google to google information about Google. It is now so big, its a noun AND a verb. Crazy.)

The Big News: Google is planning on opening several retail brick and mortar stores later this year.
*shocked face*

First impression--- "Wow, Google. Do you have to copy everything that Apple does? Are you always this late to the party? Get some new unique ideas." (I pre-warned you of my Apple loyalty in a previous post)

Impression after thinking logically and using the marketing side of my brain--- "With the recent launch of the Google Chromebook and the upcoming release of Google Glass, launching a chain of retail stores in which the customer can physically interact and experience the product for themselves actually sounds like a pretty logical, smart move."

Why did Apple launch its own line of stores? Many reasons I'm sure can be thought of, but the list definitely includes having complete control of the product from production to final sale, enhancing customer understanding of the product features/benefits, and creating an unique experience for customers that increases brand loyalty. I think for many of the same reasons, Google is now interested in launching a line of stores of their own.

Google is no longer just a search engine. With its recent acquisitions of YouTube, Blogger, Picasa, and Android, Google is building a company based on much more than simply search. Google is building an entire web experience for consumers. They own their own OS, are launching their own tech gadgets, and have money to spend. Why wouldn't they open a store of their own?

While the features and functionality of the Chromebook are not drastically different than a regular laptop, keeping the learning curve rather minimal, the same will not be true of the the yet-to-be-released Google Glass. Google Glass will require significant customer-to-associate interaction in showing the consumer the features of the new product and how to properly wear and operate the glasses. As you can see from the video below, there are a lot of interesting features rumored to be in these glasses. (Granted, this video was uploaded by Google almost a year ago as a mock-up of what Glass could be like. Who knows if features like these will actually be a part of the product. Sure would be sick though!)



I will be interested to see what more comes of this potential Google store news in the coming months. For Google to branch out of the virtual world and enter the tangible one will be a bold move. I'm not sure how well two main products (Glass and Chromebook) can support a chain of retail stores, but I suppose Google could sell products that they are affiliated with as well such as cell phones and tablets, assuming they get the proper permissions from the manufacturers. If Google can strike those selling agreements, I think Google will be launching itself into an entirely new and financially profitable chapter of its story.

Brand Obsession: Apple

For anyone that knows me, they know that I am a serious Apple junkie. I own about every major Apple product that is produced. Some say that Apple lovers form a cult (just like some misinformed people call being an Aggie the same as being brainwashed by a cult-- but I digress). I say that Apple is more efficient, innovative, simple, and sexy than Microsoft. Yes, Apple is sexy. It's hot. It's the company every is talking about, because you either love it or you hate it, and you can't wait to tell others which camp you reside in.

Recently as a part of my Marketing Strategy class, I had to look strategically at Apple, Inc; the entire corporation from smartphones to music to applications to computers. With the passing of Steve Jobs, the genius who made Apple into the mecca it is today, a new CEO takes over brining new opinions, new styles of management, and new ideas on how best to move forward as a company. A lot has been made of Tim Cook, especially in comparison to Steve Jobs (which personally, I don't think is anywhere near being fair, but its a natural tendency). But what about just as Tim Cook, CEO of Apple, Inc? No before or after, just the present. What can he do to continue Apple's rapid growth?

Several ideas were presented in our class discussion of things that Tim Cook should focus on in his tenure at the top of Apple. IP protection, market share, technology advancements, and international marketing were all topics brought forward as potential areas in need of improvement by Mr. Cook. I will go into the two that I agree with the strongest.

Focus #1: IP Protection

In the HBR article that our class read for this discussion, it mentioned that Tim Cook has stated that he won't be as aggressive as Jobs was in pursuing IP infringements. In my opinion, that is a huge mistake. Now, I understand that Jobs was actually criticized for how obsessed he was with suing people for every last dollar they were worth if they messed with Apple IP. I'm not saying I completely condone that approach either. What I will say is that what Jobs did in protecting Apple's creative concepts and ideas obviously worked and garnered the company a huge amount of competitive advantage in several different areas of the technology market. Technological advantage over its competitors is one of Apple's main lifebloods of its organization. Without strong IP protection, Apple's high price point can easily be undercut by competing manufacturers willing to sell for a lower cost and take a lower profit margin.

I suppose I'm more concerned regarding his comments on IP simply because of the fear of the unknown. I suppose this particular focus is just a more "wait and see"just how laisse-faire Cook actually plans on being regarding IP protection. I'll be very interested to see the developments in the next few years and how things change (or don't change).

Focus #2: Technology Advancements

One thing that does worry me a bit as a loyal consumer of Apple products is how many Windows based Android devices are coming out with features that are cooler and more innovative than Apple offers. One of the main successes of Apple has been its flawless iOS system for all of its mobile devices. The iOS is tightly controlled by Apple and offers little room for personalization when compared to a Windows or Android device (unless of course, you were to jailbreak your Apple product).

For a long while, Apple was on top of the heap when it came to cutting-edge technology, but with the recent surge of the Anrdroid platform, Apple no longer can simply rest on their laurels sitting comfortably ahead of the pack in the smartphone/tablet marketplace. With Steve Jobs, you always felt there was a constant presence of innovation at the company and that the next big thing was right around the corner. With Tim Cook in charge, I don't really know what to think yet. Is he capable of creating the level of innovation that Apple has become known for? Is his team of designers up the challenge to take over the bulk of the design role, a role that up until the day of his passing was heavily influenced by Jobs?

One thing is for sure, Apple must find a way to bring their technology back onto par with Windows and the Android OS or else they will lose share in the only product segment within the company in which they still have a distinct and hearty advantage.

Junkie Status

Finally, just as an aside I thought I would prove just how much of an Apple junkie I actually am. I've listed out all the Apple products I own. I am married to iOS and will never be seen buying an android product (mainly because hello, I need my color-coordinated iCal synched wirelessly across all my devices or else I am a lost soul with a schedule).--

• Black MacBook (2006 model) -- planning on selling it... and taking offers ;)
• MacBook Pro (2012 model) 
• iMac 21.5" (2011 model)
• Apple TV (3rd generation)
• iPad 1 32GB ---sold it.
• iPad Retina 32GB white
• iPhone 3GS 16GB white
• iPhone 4S 16GB black

Brand Obsession: IKEA

As many of you know, I am now in graduate school working toward a Master of Science in marketing degree. As a part of furthering my knowledge in the world of marketing and strategy, I am going to start incorporating marketing/business related thoughts, tidbits, and articles into this blog. I think it will help me think critically and better flesh out my thoughts and ideas about what is going on in the business world today.

First up:

Harvard Business Review (HBR) case study: "IKEA Invades America"

-I recently read this case for a marketing strategy course that I'm taking this semester. Written in 2004, it provides a unique snapshot of IKEA during a very important and pivotal time in the company. During this time, IKEA was still fairly new to the United States but looking to grow rapidly if the market accepted the unique IKEA product style.

Here are a few things that I gathered while reading the case:

• IKEA has always been known for their simplistic design of furniture. What I didn't realize before reading the case was that this mindset of simplicity permeates throughout the company, from idea conception through design and all the way to delivery to the end consumer. IKEA has developed a product/price matrix that is used during development of all products. The product must fit into one of four styles: Scandinavian (sleek wood), Modern (minimalist), Country (neo-traditional), and Young Swede (bare bones). Additionally, it needs to be categorized into a low, medium, or high price point. If what IKEA comes up with can't be sold 30-50% lower than the price benchmark in that category amongst IKEA competitors, then in most cases, the product development stops there. It is a very streamlined and efficient way to organize the product development process while making sure that new product additions enhance the overall company portfolio.
• When the case was written in 2004, there was only 1 store in the Asian market. Since then, the number of stores in China and Japan have exploded and the Asian market seems pretty saturated with the number of IKEA stores currently operating. I spoke with a friend, Candace, in class about IKEA in the Asian market as she grew up in China and is very familiar with the culture (Candace is an American, just so we're clear ;). She mentioned that in China, going to IKEA is something fun to do with your friends. It is not the same grand purchasing adventure that Americans have when they travel to an IKEA. Candace said IKEA, while boasting of quality furniture at affordable pricing, is still priced too high for most Chinese to buy from on a regular basis. Sure, people will buy the small household, trinkety items, but the large pieces of furniture are a much harder sell over there. She thinks there is still work to be done in that aspect of better meeting the Chinese market expectations of the brand.

(The map shown above is from 2007, but it's the most recent one that I could find. 

It shows a more updated total of stores in various countries all around the world.)

• When looking at the map for other untapped markets that IKEA could pursue, there was one country that stood out for its dense population, fast product adoption rate, and increased willingness to accept Western-influenced products. INDIA. It's so obvious! Why hasn't IKEA entered the Indian market place yet?! Now I'm sure there are all kinds of red tape and government interference that I know nothing about, but taking all of that aside for a moment and looking at the situation with a purist viewpoint, it seems like a prime market for IKEA. So what do I do when faced with a question that makes no sense to me? I google it. Obviously. And what do you know?! A recent Forbes article that mentions how IKEA just struck a deal to invest $1.9 billion to build 25 stores in India over the next decade or so. The first won't open for another three years but the groundwork has been laid. IKEA will have to tailor its stores to meet Indian government guidelines, such as IKEA won't be allowed to have their signature cafes inside the stores because it violates the FDI policy on food retailing. IKEA has always been fairly rigid it will not change its brand to fit into new markets. If the customers within the new market do not accept the Scandinavian influenced company, design, food, and overall experience, then IKEA views it is not a good market for the company. For IKEA to agree to not include its signature cafes in the new set of stores in India is, I think, a very big move for the company and says a lot about the lengths they are willing to go to get a foothold in the Indian market. Only time will tell how this will all play out for IKEA and what other concessions the company may have to end up making to tailor to the Indian market. This will be interesting to watch over the coming years to see just how true to the brand IKEA remains.
• A last little thought on the subject of potential country expansion for IKEA --Latin America & South America-- Why hasn't IKEA gone there yet? Certain large cities in not unlike Rio de Janiero, Santiago, Buenos Aires, and Lima certainly have a diverse enough population to garner an IKEA following. These cities are just teeming with young people who are modern, minimalists, and who need organization for small living spaces. I believe that the majority of the Latin/Hispanic population has been left out of IKEA's markets (with the exception of Spain and Portugal where IKEA has numerous stores). Is there a reason behind this exclusion? Are there characteristics about the Latin consumer that deter them from IKEA-style products? These are questions that I don't have the knowledge to answer but are worth a look for IKEA if they want to reach a virtually untapped market.

My own personal thoughts on IKEA

I LOVE THIS STORE. Yes, that was in all-caps. I LOVE IT. I mean, I'm a girl and I love shopping, so there's that. But IKEA is so much more than just shopping. It's an interactive, enthralling experience that can't really be compared to any other store in the market today. The ability to visualize each individual room, the ideas that are generated from seeing items placed together that wouldn't ordinarly be, the sleek, modern style that mirrors where I'm at in my life right now, the affordable changeability of patterns, colors, and styles in the furniture industry (an industry primarily known for its product longevity and hefty expense on one's finances). ...I could go on and on. I love this store. Assembling the products is kind of a hassle, I admit (although it helps having a solid man in your life who you ever so lovingly ask for his assistance ;) but the reward from knowing you made those 5 slabs of wood into an desk or bookcase or whatever, that's powerful. Is it lame to say to IKEA empowers people? I believe it does to an extent. IKEA empowers people to think creatively when designing a room. IKEA empowers people to think differently about furniture and what it means to our lives. IKEA empowers people to be their own masters of creation, from picking to loading to assembling. IKEA is a powerful company that has developed a strong group of loyal followers, myself included (obviously!) that has ample room to grow, should the company desire that expansion.

(oh, and here is a little snapshot into one of my most recent IKEA hauls with 

my sister at the IKEA in Frisco, TX. Did I mention I love IKEA?..)