It a case study analysis onMountain Man Brewing Company: Bringing the Brand to Light

1. CASE STUDY ANALYSIS ON
MOUNTAIN MAN BREWING
COMPANY :
BRINGING THE BRAND TO LIGHT
Made By :
Hemangini Chaudhary (MB008)
Khyati Patel (MB023)
Priyanka Prajapati (MB035)
Mubin Saiyed (MB040)

2.  Key Personalities
 Chris Prangel - MBA Graduate
 Oscar Prangel – Retired Owner and President of
MMBC
 Guntar Prangel – Founder of MMBC
 John Fader, VP Sales
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3. CASE FACTS
 Mountain Man Beer Company founded in 1925
by Guntar Prangel
 Chris Prangel , an MBA graduate wanted to
inherit his father`s business.
 Mountain Man brewed(prepared) one beer called
Mountain Man Lager
 Also known as West Virginia`s beer
 Chris wanted to launch Mountain Man Light
among the market.
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4. CONTINUED..
 For the past 6 years light beer sales in US had
been growing at a compound annual rate of 4%
 Also had decrease of traditional premium beer
sales with same percentage
 By 2005, Mountain Man generated revenue over
$50million and selling over 520,000barrels of
Mountain Man Lager.
 They are the top market position in West
Virginia among Lagers
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5. CONTINUED..
 Mountain Man lager was priced similarly to
premium domestic brands such as Miller &
Budweiser and below specialty brands such as
Sam Adams.
 Price $2.25 for a 12-ounce serving of draft beer
in bar
 $4.99 for a 6-pack in a local convenience store
 Unaided response rate of 67% from State`s adult
population 5

6. SITUATIONAL ANALYSIS OF CUSTOMER
 The beer industry in US generates $ 75 Billion in annual
sales.
 Customers base their choice on taste, price, occasion,
perceived quality, brand image, tradition, local
and authenticity
 Eastern Central Region represents $13 billion in annual
sales out of $75billion.
 Mountain Man counts with 81% male drinkers, thus
neglects Female market segment
 Female market segment which represents 32% of the
TAM of domestic premium beer.
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7. CONTINUED
 Focus on a target market: blue-collar male workers.
 MML not taking consideration of other market segments
such as the white-collar class and other potential niches
 64% of Mountain Man drinkers are 45+ years old while
the TAM for that age category represents 49% of the
domestic premium beer market in the Eastern Central
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8. COMPETITION
 Competitors for Mountain Man are Anheuser
Bush, Miller brewing Co. and Adolf Coors
possessing 74% market share of the overall
brewing market.
 These three companies have 84% market share
in the light beer market.
 They rely heavily on broadcasting market as
well product diversification to create barriers of
entry for other brands.
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9. COLLABORATIONS
 Off-premise locations, such as liquor stores and super
markets, is Mountain Man main sales channel as it sells
70% of its production at these locations.
 The main reason for this result is that 60% of blue-collar
workers buy their beer through the off premise locations.
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10. SWOT ANALYSIS
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• Strength :
1. Market leader and well
established brand name.
2. Strong brand equity.
3. Promotion Strategy &
Customers.
4. Best range of Attributes.
• Weakness :
1. Improper utilization of funds
in advertising
2. Lack of financial resources to
compete in the light beer
advertising market.

11. CONTINUED..
 Opportunities :
1. Reach out to younger demographic
2. Increase lifetime customer value
 Threats:
1. Risk of canalization of core brand
2. Alienation of core customer through new brand
3. Dilutes Brand equity
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12. LEADING QUESTIONS
• How brand awareness campaign can be carried
out ?
• Is the promotion strategy for Mountain Man
Lager & Mountain Man Light the same ?
• Does the new brand affect the sales of existing
brand i.e Mountain Man Lager ?
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13. MAJOR ISSUES
 Pressure on regional breweries
 Mountain Man`s revenue declined in 2005 by 2%
 Challenging company`s ability to remain profitable
 Struggling to maintain steady share of its market
segment against large domestic brewers
 Impact of Mountain Man Light on sales of Mountain
Man Lager
 Financial projections showed regional revenue growth of
the light beer product @ 4% annually
 Mountain Man steadily growing its share of the regional
light beer market by a quarter of a percent each year off
of a 2006 base market share of 0.25% 13

14. SOLUTION ACCORDING TO OUR VIEW
 Launch Mountain Man Light via brand extension.
 Providing offer in prices for Mountain Man Light if
bought in high quantity
 Easy to convince retailers to stock & promote
 Permission marketing getting customer involved in the
brand and connecting other customers
 Advertise in spot radio, outdoor and social networks
 Need to capture on-premise locations like bar, pub which
are frequented by younger target market
 Multi-brand distribution system should be followed
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15. THANK YOU