Mountain Man Brewing Company

Group 8
 Case Facts
• Guntar Prangel founded the Mountain Man Beer Company (MMBC) in 1925
• Chris Prangel, an MBA graduate returned home to manage the marketing operations of MMBC
• MMBC brewed one beer MOUNTAIN MAN LAGER , also known as West Virginia’s Beer
• The company’s sales had experienced a decline for the First time in 2006
• Chris wanted to launch MOUNTAIN MAN LIGHT in hope of attracting younger drinkers
• Light beer sales in US had been growing at a Compounded annual rate of 4 %
• Traditional Beer sales reduced by 4% annually
• MMBC was a reputed company throughout the east central region of US
• In West Virginia, it had held top position among lagers
• The sole brand loyalty rate for Mountain Man Lager was 53% which was higher than the rates
of competitive products such as Budweiser at 42%, and Bud Light at 36%
 Critical success factors for MMBC
• High Brand awareness i.e. an unaided response rate of 67% from
West Virginia population
• People's perception of the brand being a local and authentic
product
• Legacy factor with generations of a population consuming the
product, the brand had survived for more than 50 years
• Strong customer base among the blue-collar working class
• Perception of distinct quality with respect to flavor and taste
• Priced at par with the premium domestic brands, hence
reasonable pricing is also a crucial factor
 Factors influencing brand equity of MMBC
•Firmly established brand for
8 decades which commands a
large loyal customer base with
a legacy factor
•Sticking to the core product
of Lager rather than swaying
to new emerging markets, i.e.
maintaining core product
competency
•Attributes like distinctively
bitter taste, slightly higher
than average content of
alcohol that were unique to
the Mountain Man Lager
brand.
•Known as the “West
Virginia’s Beer”, with
authenticity, quality and
“toughness” as the core
attributes which the target
customer base could relate
with
•Packaging of beer that was in
line with the product
positioning for the blue-
collared working class (logo
with the design of coal
miners)
•Judged “Best Beer in West
Virginia” for the Eighth year
straight year, affirming
customer faith with respect to
product quality and brand
name
MMBC’s reason for decline
They never made any changes in the product line.

Young beer drinkers perceived the beer as strong and

a working man’s beer

Ageing demographic and shrinking premium

segment of the beer market

Light beer category- 50.4% of sales volume in 2005,

and 29.8% of sales volume in 2001.

Change in taste and preferences of the consumers.

Pros and Cons of launching light beer
Option 1: Introducing
Option 2: Introduce
Light Beer with the
Light beer with
Mountain Man Brand
another brand name
name

Pros
Increase in revenue
Comparatively lower
advertising costs
Cater to a market growing at
a CAGR 4%
Pros
Increase in revenue
Cater to a market growing at a
CAGR of 4%
No cannibalization or
possibility of brand dilution

Cons
Possible cannibalization
Probability of brand erosion in
case the new product isn’t
successful
Cons
Higher advertising costs will be
incurred in creating brand
awareness for a new brand
No possibility of leveraging
Mountain Man’s existing strong
brand name
 MMBC light beer GTM strategy
MM Light will target both men and women between the age of 21-27 years old that are either in
college or are young professionals within the East-Central region of the United States

Target Segment Product MM Light Promotion Price Placement

• The key • This segment has • Appeal to • Beer is fairly • MM Light will be
consumer not acquired a them by priced and sold heavily in
segment are taste for full holding competitive convenience
younger flavored beer or sampling to other stores,
audiences has established events at domestic independent
between 21-27 loyalty to one local bars products. alcohol stores
years old. particular brand. near college and grocery
• They consume in • They prefer to campuses to stores in close
quantity and are consume light induce trial. proximity to
a growing beer. • Bars will college campuses
segment. • Packaging will serve the and yuppie
• MMBC will target have symbolism beer in a white-collar work
men and women related to chilled MM companies.
in college and America. glass that will • It will also be in
young • The product will have the new local bars and
professionals just be made with the brand logo. restaurants in
entering the same care, quality • Will play off, proximity to
workforce as this and authenticity “Life, liberty college campuses
is when as MM lager with and the and white-collar
consumption of lighter alcohol pursuit of work companies.
beer is the content. happiness.”
highest.
Thank You!