Mountain Man Brewing Company
Problem Statement:
Should Chris Prangel launch Mountain Man Light in order to recoup the declining sales MMBC has been experiencing due to changes in beer drinkers’ preferences and how will he adapt their marketing mix in order to achieve these goals?
Key Points:
Chris Prangel - an MBA graduate - was set to inherit his father’s business, Mountain Man Beer Company. MMBC brewed one beer called “Mountain Man Lager”, which was also known as “West Virginia’s beer”. In order to recoup the declining sales MMBC were facing, Chris wanted to launch a Mountain Man Light, a “light beer” formulation of Mountain Man Lager in hopes of attracting younger drinkers, and in order to meet the growing demand of light beer in the United States. Over the previous six years, light beer sales had been growing at an annual rate of 4%, while traditional premium beer sales had declined annually by the same rate.
MMBC was considered a market leader and an established brand that had strong brand equity. Research showed that Mountain Man was a recognizable brand among blue-collared, working-class males in the East Central region of the United States. Amongst other cornerstones of the brands success, Mountain Man Lager’s bitter flavor and slightly higher than-average alcohol content was what contributed to the company’s brand equity the most.
Introducing Mountain Man Light could allow the company to reach out to a younger demographic, however there was the risk alienating the core customer base and erode the Mountain Man brand equity and sales.
The Market:
According to Exhibit 2, it seems like the market that MMBC is serving are blue-collard males that are 45+ with household incomes of between $25k-$75k.
Should Chris Prangel launch Mountain Man Light in order to recoup the declining sales MMBC has been experiencing due to changes in beer drinkers’ preferences and how will he adapt their marketing mix in order to achieve these goals?
Key Points:
Chris Prangel - an MBA graduate - was set to inherit his father’s business, Mountain Man Beer Company. MMBC brewed one beer called “Mountain Man Lager”, which was also known as “West Virginia’s beer”. In order to recoup the declining sales MMBC were facing, Chris wanted to launch a Mountain Man Light, a “light beer” formulation of Mountain Man Lager in hopes of attracting younger drinkers, and in order to meet the growing demand of light beer in the United States. Over the previous six years, light beer sales had been growing at an annual rate of 4%, while traditional premium beer sales had declined annually by the same rate.
MMBC was considered a market leader and an established brand that had strong brand equity. Research showed that Mountain Man was a recognizable brand among blue-collared, working-class males in the East Central region of the United States. Amongst other cornerstones of the brands success, Mountain Man Lager’s bitter flavor and slightly higher than-average alcohol content was what contributed to the company’s brand equity the most.
Introducing Mountain Man Light could allow the company to reach out to a younger demographic, however there was the risk alienating the core customer base and erode the Mountain Man brand equity and sales.
The Market:
According to Exhibit 2, it seems like the market that MMBC is serving are blue-collard males that are 45+ with household incomes of between $25k-$75k.