Mountain Man Case Analysis
MKTG324 Wenjing Xu
Mountain Man Brewing Company Case Analysis
Company Overview
Mountain Man Brewing Company produces Mountain Man Lager; the most authentic regional beer for working class East Central Americans, among all premium domestic beers, because of its distinctive quality, bitter flavor, slightly higher than average alcohol content and competitive price .
MMBC targeted its product toward the middle-aged blue collar worker in the East Central region. MMBC’s strategic focus on this target audience helped it to be successful in the highly competitive market for premium beers, even when other local brewers went out of business. 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%.
Their own small sales force pushed the sales at off-premise locations; Grass roots marketing of the brand; Established relationships with retailers in the East Central Region. These factors along with the fact that they served a large enough market, helped MMBC compete with major domestic premium brands such as Miller and Budweiser, as well as second-tier domestic producers when other breweries were going out of business in Virginia.
Issues
The company experienced a decline in revenue of 2% in 2005. The decline is due to changes in regulations, health concerns, aging loyal customers and increasing light beer drinkers. Premium beer consumption was down 4%, but light beer use was up 4%. There was also new competition from imports and craft beers which were growing at a rate of 6% and 9% respectively (Exhibit 5). Chris Prangel strongly recommended his father to enter the light beer market. However, His father and VP of Sales had different concerns. 1. Mountain Man Light will erode the brand equity and sales of Mountain Man Lager. 2. Mountain Man Light will never achieve the volume of larger light beer sales and would get lost in the sea of new-product
Mountain Man Brewing Company Case Analysis
Company Overview
Mountain Man Brewing Company produces Mountain Man Lager; the most authentic regional beer for working class East Central Americans, among all premium domestic beers, because of its distinctive quality, bitter flavor, slightly higher than average alcohol content and competitive price .
MMBC targeted its product toward the middle-aged blue collar worker in the East Central region. MMBC’s strategic focus on this target audience helped it to be successful in the highly competitive market for premium beers, even when other local brewers went out of business. 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%.
Their own small sales force pushed the sales at off-premise locations; Grass roots marketing of the brand; Established relationships with retailers in the East Central Region. These factors along with the fact that they served a large enough market, helped MMBC compete with major domestic premium brands such as Miller and Budweiser, as well as second-tier domestic producers when other breweries were going out of business in Virginia.
Issues
The company experienced a decline in revenue of 2% in 2005. The decline is due to changes in regulations, health concerns, aging loyal customers and increasing light beer drinkers. Premium beer consumption was down 4%, but light beer use was up 4%. There was also new competition from imports and craft beers which were growing at a rate of 6% and 9% respectively (Exhibit 5). Chris Prangel strongly recommended his father to enter the light beer market. However, His father and VP of Sales had different concerns. 1. Mountain Man Light will erode the brand equity and sales of Mountain Man Lager. 2. Mountain Man Light will never achieve the volume of larger light beer sales and would get lost in the sea of new-product