- Mountain Man Brewing Company (MMBC) is a family-owned brewery in West Virginia that has produced Mountain Man Lager for almost 50 years, becoming the market leader in the state. - MMBC is experiencing declining sales for the first time as consumer tastes have shifted toward light beers. Marketing manager Chris Prangel wants to launch Mountain Man Light to attract younger drinkers. - A feasibility study found that Mountain Man Light could gain market share in the growing light beer segment and become profitable by 2007, helping to increase the brand's awareness and value. The document concludes Chris Prangel should launch the new light beer product line.

1. Case study on
Mountain man beer
company

3. • A family-owned business with independent
image
• Brewed one beer named Mountain Man
Lager
• also known as West Virginia’s beer
• Premium segment market leader in West
Virginia for almost 50 years
• Popular among blue-collar workers
MMBC

4. • Chris Prangel has returned home
to manage the marketing
operations of Mountain Man
Brewing Company (MMBC)
• At that time, the company was
experiencing declining sales for
the first time in its history

5. Due to changes in beer
drinkers taste preferences,
Chris Prangel wanted to
launch Mountain Man
Light, a "light beer”
attracting younger drinkers

6. WHAT HAS MADE MMBC SUCCESSFUL?

7. • Manufactured an exceptional beer with a great brand name
• Mountain Man was recognized as a “brand among working
-class males” in the East Central region
• The good perception of quality and the brand loyalty it
cultivated.
• Never lost sight of their core customer

8. • Consistency of taste and quality
• The uniqueness(bitter flavor and slightly higher-than-average alcohol content)
• Its history and its status as an independent, family-owned brewery helped to create an
aura of authenticity
• Positioning the beer with its core drinkers
• Blue-collar, which tended to be very loyal
• Invested in a number of branding activities to build brand equity with core consumers
MMBC as a Strong brand

9. WHAT HAS CAUSED MMBC’S DECLINE
IN SPITE OF ITS STRONG BRAND?

10. • Over the previous six years, light beer sales in the US
had been growing at a compound annual rate of4%,
while traditional premium beer sales had declined
annually by the same percentage Since 2001, US per
capita beer consumption had declined by 2.3%
• Competition from wine and spirits-based drinks, an
increase in the federal excise tax, initiatives encouraging
moderation and personal responsibility, and increasing
health concerns

11. SHOULD MMBC
INTRODUCE A LIGHT
BEER?

13. In response due to declining on sales,
MMBC’s options: whether or not to
launch the new product
•Mountain Man Light–a “light beer”
formulation of Mountain Man Lager
YES

17. FEASIBILITY OF MOUNTAIN MAN LIGHT
•Nett revenue: $50,440,000
•Barrel sold 520,000
•Selling price per barrel $97
0.25% Market Share Every Year
•Light beer market share in 2005:18,744,303
With 4% CAGR:
2006: 19,494,075 MMBC market share: 48,735
2007: 20,273,838 MMBC market share: 101,369
MMBC Revenue from light beer 2006:48,735x97 = $ 4,727,295
MMBC Revenue from light beer 2007:101,369 x97 = $ 9,832,793

18. The product is expected to cover all
its investment costs and become
profitable by 2007
Launching Mountain Man light can
also increase awareness and uplift
the brand value

19. Coclusion
I feel that Chris Prangel should
go ahead and launch Mountain
Man light