What are the critical success factors for MMBC? What are its competitive advantages?
Ans. The critical factors for the success of Mountain Man Brewing Company (MMBC) are: * Brand awareness among blue collar customers * The quality in terms of smoothness, percentage of water content, drinkability (distinctly bitter flavour, higher than average alcohol content) which created a unique brand equity * Branding activities done by MMBC such as establishing an independent sales force to capture the market in off-premise locations * Very high sole brand loyalty rate of 53%
The competitive advantages are: * Top in the market for the past 50 years in the eastern region with a brand image of West Virginia’s best beer * 75+ - year-old brand with a loyal, blue-collar clientele * Single product targeted at blue collar workers above 45 years old creating a brand awareness as a quality brewers from the very early times as 1925
2. Elaborate on the factors influencing brand equity of MMBC.
Ans. The factors influencing brand equity are: * Independent, family-owned brewery creating a connection with consumers who don’t trust ‘big business’ * Distinctive taste giving the impression of being for blue collar workers * Higher alcohol content making it preferred among older men * Image as a regional beer among consumers in Eastern region * Produced by a company established for over 75 years * Age distribution of consumers
3. In spite of strong brand equity, why did MMBC faced decline?
Ans. MMBC faced decline because of: * Increasing competition from wine and spirit based drinks * Selling beer at discounts at retail stores by other brands * Shrinking target demographic due to aging * Growth of light beer category that has been gaining market share at the expense of normal beer * Younger drinkers from 21 – 27 years prefer light beer to premium beer and consume more per person * Brand