Miller Asks "Wanna Iguana?" (A)

Joseph Wolfe and Lester A. Neidell
University of Tulsa © 1998
ISBN 0-324-00271-8

Case Teaching Package
A case teaching package is available for the Miller Asks "Wanna Iguana?" cases. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the cases, and suggestions for the most effective ways to work these cases into your course.

Length
This case is 12 pages in length and the case teaching package is 24 pages.

Abstract

After a number of successful product introductions, Miller Brewing has found its "star" brand, Miller Light, losing out to Bud Light while Coors Light is gaining ground in this very important product segment. At the Plank Road Brewery, Miller's microbrewer, successor products to Icehouse and Red Dog are needed. The division's director Rob Olejniczak thinks a light beer containing a unique caffeine-based flavoring ingredient might sell well. Pilot tests of the product Iguana Light have done well, and as January, 1996 nears, his marketing team prepares for its Momentum Test in a number of selected markets.

Linkages to Textbooks or Journal Articles/Fit Within a Course

This case has been designed for use in graduate and undergraduate level marketing management courses and marketing research courses. It can be used as a "stand-alone" case to illustrate the problems of product portfolio management. When used as the first part of the three-case Miller Asks, 'Wanna Iguana?' series, students are exposed to all the steps taken by a major brewer in developing a new product as well as the various decisions the marketing team had to make along the way from product concept to product introduction.

Study Questions

  1. Regardless of its formulations as either Iguana 111 or Iguana 79, the fact that Iguana Light is a caffeinated beer sets it apart as an entirely new product category. Putting this differentiating factor aside, conduct an analysis of the industry's light beer segment to determine its brand clusters and those clusters with which Iguana Light is most similar. Based on this analysis, can you make a judgment about the brand cannibalization fears held by the Plank Road marketing group if Iguana Light is successful?
  2. From a brand or product portfolio perspective, what is the composition and status of Miller's light beer portfolio? Using data found in this case and elsewhere, construct a BCG Growth-Share Matrix and interpret and discuss your findings. What brand strategy and new product development initiatives would you suggest to Rob Olejniczak based on your analysis?
  3. What are the advantages of engaging in Momentum Tests? What are the disadvantages or problems associated with implementing this type of test which could compromise its findings?
  4. If Iguana Light proves successful at the Momentum Test stage, and the product receives a national roll-out, do you believe it would give Miller Brewing a sustainable competitive advantage in the beer industry? What are the long-term risks and rewards associated with this product's introduction?


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