Mountain Man

Mountain Man Brewing Company (MMBC) was found in 1925 as a family run business and “Mountain Man Lager” is its core product. MMBC was rated as “Best Beer in West Virginia” for years and was selected as “America’s Championship Lager” at the American Beer Championship. MMBC relied on his history and status as independent, family-owned brewery to create an aura of authenticity and to position the beer with its core drinkers – blue-collar, middle-to-lower income men over age 45. Because of the product quality, positioning and brand equity, MMBC had gained a strong brand loyalty, which has made MMBC so successful. The unique quality of Mountain Man, the distinctively bitter flavor and slightly higher-than-average alcohol content, contributed to the company’s brand equity which made MMBC distinguish from the competitors. But because of the competition from wine and spirits-based drinks, an increase in the federal excise tax, initiatives encouraging moderation and personal responsibility, and increasing health concerns, MMBC’s business declined 2% in revenues in latest years.
I think MMBC should introduce the light beer as “Mountain Main Light”, since light beer category accounted for 50.4% of volume sales in 2005 compared with 29.8% in 2001 and light beer sales in the States had been growing at a compounded annual rate of 4% while traditional premium beer sales had declined annually same percentage. It can be a good opportunity for MMBC to join the light beer business as early as possible.
The advantages of launching light beer are as follows:
First, MMBC has the opportunity to gain the huge potential market of younger generations. Because the target segment of light beer is 21-27 years old younger people and light beer seems to be attractive to younger drinkers overall as well as to female, which accounts for 42%, it will help MMBC to cover a larger consuming population. Second, it can make MMBC become a diversified brand which has different options for different