Beer and Mm Lager
11/10/13
Mountain Man Brewing Company Case Study
Table of Contents
What is the current situation? 2
What has made MMBC successful & distinguishes it? 2
What enabled MMBC to create such a strong brand? 3
What has caused MMBC’s decline in spite of its strong brand? 3
Should MMBC introduce a light beer? 4
Is MM Light financially feasible for MMBC? 5
Break-Even Point (BEP) Analysis 6
MM Lager Cannibalization 6
MM Light Marketing Strategies 7
Exhibit 1 – SWOT Analysis 9
Exhibit 2 – Financial Data and Assumptions 10
Exhibit 3 – Break-Even Point (BEP) Analysis Calculations 11
Exhibit 4 – MM Lager Cannibalization Calculations 12
Exhibit 5 – MM Light Marketing Strategy 15
What is the current situation?
Mountain Man Brewing Company (MMBC) is a family business founded in West Virginia in 1925 by Guntar
Prangel. The company is now operated by Guntar’s grandson, Oscar. Oscar’s son, Chris, is slated to inherit the business in five years when his father retires. Mountain Man (MM) Lager is the flagship product and the only beer currently produced by the company. The recipe for the lager was based on a refined family recipe and is known for its flavorful, bitter taste. By the 1960s, the lager had established itself as a legacy beer with a rich history, and the company continues to maintain its independent, family-owned status which appeals to its core drinkers. By 2005, the popularity of MM Lager in the East Central region of the U.S. had grown to generate revenues of just over $50 million, and the beer held the top market position among lagers in West Virginia. MM
Lager won “Best Beer in West Virginia” in 2005 for the eighth year in a row.
What has made MMBC successful & distinguishes it?
MMBC has enjoyed success because of several factors. Although it is a regional brewer, it has superb name recognition. A recent study showed that Mountain Man Lager was considered by many to be West Virginia’s best known beer. In addition, it has very strong
Mountain Man Brewing Company Case Study
Table of Contents
What is the current situation? 2
What has made MMBC successful & distinguishes it? 2
What enabled MMBC to create such a strong brand? 3
What has caused MMBC’s decline in spite of its strong brand? 3
Should MMBC introduce a light beer? 4
Is MM Light financially feasible for MMBC? 5
Break-Even Point (BEP) Analysis 6
MM Lager Cannibalization 6
MM Light Marketing Strategies 7
Exhibit 1 – SWOT Analysis 9
Exhibit 2 – Financial Data and Assumptions 10
Exhibit 3 – Break-Even Point (BEP) Analysis Calculations 11
Exhibit 4 – MM Lager Cannibalization Calculations 12
Exhibit 5 – MM Light Marketing Strategy 15
What is the current situation?
Mountain Man Brewing Company (MMBC) is a family business founded in West Virginia in 1925 by Guntar
Prangel. The company is now operated by Guntar’s grandson, Oscar. Oscar’s son, Chris, is slated to inherit the business in five years when his father retires. Mountain Man (MM) Lager is the flagship product and the only beer currently produced by the company. The recipe for the lager was based on a refined family recipe and is known for its flavorful, bitter taste. By the 1960s, the lager had established itself as a legacy beer with a rich history, and the company continues to maintain its independent, family-owned status which appeals to its core drinkers. By 2005, the popularity of MM Lager in the East Central region of the U.S. had grown to generate revenues of just over $50 million, and the beer held the top market position among lagers in West Virginia. MM
Lager won “Best Beer in West Virginia” in 2005 for the eighth year in a row.
What has made MMBC successful & distinguishes it?
MMBC has enjoyed success because of several factors. Although it is a regional brewer, it has superb name recognition. A recent study showed that Mountain Man Lager was considered by many to be West Virginia’s best known beer. In addition, it has very strong
References: Abelli, H. (2007). Mountain man brewing company: Bringing the brand to light. Harvard Business Review, 2069. Peter, J.P., Donnelly, J.H. (2013). A preface to marketing management. New York: McGraw-Hill.