Mountain Man Brewing Company: Bringing the Brand to Light

Submitted By: Mohana Goel [12DM077]
Mohit Bhola [12DM078] Nidhi Dalal [12DM090] Nishant Raj [12DM097] Nishtha Chugh [12DM098] Piyush Chib [12DM102]

Where the product association with Mountain Man Lager may be too strong in terms of flavour. and a stepping stone to introduce them to Mountain Man Lager.  To analyse how it maintains its market share  To suggest whether the company should go ahead with the launch of Mountain Man Light. it is what the market demands. middle-to-lower income men over age 45. . Light beer is the gateway necessary to attract new consumers. Conclusion The launch of a new product is always going to be a risk. By 2005 Mountain Man was generating revenues just over $50 million and selling over 520. Michigan. directly attracting affluent light beer drinkers can broaden the identity of Mountain Man Beer Company as a quality brewer within their region. Mountain Man Lager was a legacy brew in a mature business. Light beer is the largest sales opportunity for a reason. and its native West Virginia.In 2006 Oscar Prangel was the president and owner of MMBC and after 5 years Chris Prangel will take over the business. By the 1960s. Mountain Man Lager’s reputation as a quality beer was well entrenched throughout the East Central region of the United States.000 barrels of Mountain Man Lager beer primarily to distributors in Illinois.99 for a sixpack in a local convenience store. family owned brewery to create an aura of authenticity and to position the beer with its core drinkers—blue collar. Mountain Man Lager was priced similarly to premium domestic brands such as Miller and Budweiser and below specialty brands such as Sam Adams. Objective The key objectives of the case study are:  To understand how MMBC positioned its Mountain Man Lager among stiff competition in the market. Its price was typically $2.25 for a 12-ounce serving of draft beer in a bar and $4. Indiana. MMBC relied on its history and its status as an independent. a lighter version of the core lager beer. Ohio. but banking on the withering demand for a single offering is surely not going to alter the fortunes of the Mountain Man Beer Company.Abstract Guntar Prangel founded the Mountain Man Beer Company (MMBC) in 1925.

percentage of water content.e. (a) What is Chris considering doing and what factors will he have to align to be successful? Chris Prangel is considering on product diversification and is assessing on launching Mountain Man Light. a “light beer” formulation of Mountain Man Lager. its status as an independent. the company’s primary product. non-corporate and family owned regional based brewery giving it the originality desired by its customers. (a) What is distinctive about MMBC’s product? There were ranges of subjective attributes that defined the quality of Mountain Man. middle to lower income men over age 45. (b) What is distinctive about MBBC’s customers? MMBC’s customers for its core product are primarily the blue-collar consumers. and “drinkability”—but it was Mountain Man Lager’s distinctively bitter flavour and slightly higher than-average alcohol content that uniquely contributed to the company’s brand equity. The customers were very loyal towards this brand. Lager Beer.  Avoid overshadowing of the core product by the newly introduced product. (c) How is MMBC’s promotion different and effective? .Answers to the Case Questions: 1. MMBC is different from its competitors because of its history. 2.  Minimize brand overlap and at the same time any brand equity damage.S. in the hope of attracting young drinkers and entering into the Light Beer segment Factors to be considered for the same are:  Assess ways to cater to declining sales revenue of Mountain Man Lager  Launching of Mountain Man Light as a brand extension. What has made MMBC successful? What distinguishes it from competitors? . like its smoothness. they were quite happy with the taste of Mountain Man Lager and were objectionable to the fact that changes should be done with the present brand. (b) What goals should MMBC (Chris) have? Chris should present a new detailed Marketing Plan to launch ‘Mountain Man Light’ using the brand value chain marketing programme where the introduction of a new product will help in the upliftment of the core product i. It was a recognised brand among working class males in the East Central Region of U.

Brand Equity describes the value of having a well-known brand name based on the idea that the owner of the brand can generate more money from the product with that brand name than from products with a less-known name. The brand focussed on local marketing activities. design or symbol or any of the features that identifies one seller’s good or service as distinct from those of other sellers. It has also distinguished itself from competitors by Mountain Man Lager being produced and distributed by an in-house marketing team in West Virginia. Brand Equity is created through strategic investments in communication channels in market education. microbreweries. What has caused MMBC’s decline in spite of its strong brand? Reasons for decline:     They never made any changes in the product line. and specialty brewers. MMBC has a high brand loyalty rate of 53% in comparison to their competitors who have a lower brand loyalty rate. 4. instead the company focussed on grassroots marketing as a means of advertising its brand. What about these factors enabled MMBC to create such a strong brand? Factors that have enabled MMBC to create a strong brand are taste. import beer companies.50. contract breweries. term. image. Miller Brewing Company. Young beer drinkers perceived the beer as strong and a working man’s beer. The competition in the U.8% of sales volume in 2001.Traditional Advertising was not to promote its product. beer market fall into four categories: Major and secondtier domestic producers. and regional craft breweries. thus making the brand more personable to the consumer. The craft beer industry was divided into four markets: brewpubs. quality. 3. (a) What is a brand? What is brand equity? How is it created? A brand is a name. MMBC competes with Anheuser Busch. (a) Describe the market MMBC serves and the beer market in general. and 29.  Change in taste and preferences of the consumers. and Adolf Coors . (b) Describe the competition and MBC’s threats.S. Ageing demographic and shrinking premium segment of the beer market. MMBC serves the lager beer market as a major domestic producer.4% of sales volume in 2005. tradition and authenticity. Light beer category.

(c) What is the likely future of competitive brewers? What is MMBC’S market/competitive position? Most industry observers agree that the key consumer segment for beer companies are young drinkers. the company’s most significant competitor. MMBC should introduce light beer because entering new markets will lead to stronger relationships with distributors and hence increased sales. the company struggled to maintain a steady share of its market segment against the large domestic brewers. Disadvantages:  Product cannibalization  Brand erosion  Product may not be perceived well 6. Together. Should MMBC introduce a light beer? Yes. Its threats are the changing preferences of consumers. 21–27 years of age. these companies accounted for 74% of 2005 beer shipments in Mountain Man’s region. 5. Its need of the hour . and it therefore could continue to compete against national players with deep pockets such as Anheuser Busch. which were spending heavily to maintain their own sales levels in the premium segment. MMBC should introduce light beer because entering new markets will lead to stronger relationships with distributors and hence increased sales. Facing an aging demographic in the shrinking premium segment of the beer market. MMBC’s market position is good as compared to its competitors as it has served a large market with a very strong brand. Its need of the hour as we can see four percent compound growth in this new segment and on the same time decline in lager consumption. (a) What are the pros and cons of doing so? Advantages:     Light beer was newer and faster growing product category Others competitors having product in this segment Mountain man's sales were declining due to other light beer brands. This group represents the “first-time drinker demographic” that has not yet established loyalty to any particular brand of beer. Appealed to young drinkers and women.Company in its market. emerging new brands and introducing a new product while maintaining the originality of its core product. Is Mountain Man Light feasible for MMBC? Yes.

(a) What other strategic options for growth?  Promotions in West Virginia  Promotional offers at Corporate Parties and get-togethers.  Linking the brands with national and local teams. Should MMBC launch Mountain Man Light? MMBC should launch Mountain Man Light because brand extension is necessary for its growth.  Promoting the brand among beer and liquor stores by getting a significant shelf space. Launching light beer would not harm Lager image because its target segment is completely different. it accounts for 42% which is an appreciable figure. it doesn’t require major capital expenditure and equipments. In the short term.  Going with a different or slightly modified name or going with a private labelling can be a good option in this case when you don’t want to put your present in ultimate risk  Introduction of Light Beer at bars and restaurants. .  Launching it at untapped markets where majority of population is youth. Light beer appeals to younger drinkers overall and to we can see four percent compound growth in this new segment and on the same time decline in lager consumption. Existing Mountain Man customers do not want a change while young generation wouldn’t mind a lighter version. providing sponsorships for the team. 7.