Harvard Business School case study analysis as a task for internship under Prof. Sameer Mathur of IIM Lucknow.

2. • Launched Mountain Man Lager
• Legacy brew by 1960
• Known as West Virginia’s Beer
• Premium segment market leader in West Virginia for 50 years
• Family owned business
• Popular among Blue-Collar workers
• Popular among middle aged men over 45 years

4. MBA graduate who stands to own MMBC

7. 1. Increasing light beer sales at CAGR 4%
2. Declining premium beer sales
3. Declining MMBC revenue

10. • Known for authenticity , quality and
unique West Virginia ‘toughness’
• Young drinkers aware of the brand
• Grass roots marketing was effective
• Customers tended to be very loyal (Brand
loyalty rate 53%)

13. A statement by one of the customers :
“My dad drank Mountain Man just like
my granddad did. They both felt it was as
good a beer as you could get anywhere.”

15. PROS
• MORE REVENUE
• UNTAPPED MARKET
• NO BRAND DILUTION
CONS
• HIGH ADVERTISING COST
• HIGHLY COMPETITVE
LIGHT BEER MARKET

16. PROS
• MORE REVENUE
• UNTAPPED MARKET
• NO ADVERTISEMENT
COST
CONS
• PRODUCT
CANNIBALISATION
• BRAND DILUTION

19. • TIME NEEDED : 2 YEARS
• ESTIMATED COST PER BARREL :
VARIABLE COST - $66.93
EXTRA COST - $4.69
TOTAL COST - $71.62
• MARKET PRICE PER BARREL :
TOTAL REVENUE - $50,440,000
TOTAL SALES - 520,000
(In Barrels)
SELLING PRICE - $97 ( TOTAL REVENUE/TOTAL SALES)
• REVENUE PER BARREL - $25.38 ( SELLING PRICE – TOTAL COST)

20. • ESTIMATED LIGHT BEER GROWTH : CAGR 4%
• INITIAL MARKET SHARE OF MMBC: 0.25%
• INCREASE IN MARKET SHARE PER YEAR FOR MMBC : 0.25%
• INITIAL ADVERTISEMENT COST : $750,000
• ANNUAL SG&A COSTS : $900,000
• TOTAL COST FOR 2 YEARS : $750,000 + 2*(900,000) = 2,550,000

21. • TOTAL COST FOR 2 YEARS : $750,000 + 2*(900,000) = 2,550,000
• REQUIRED TOTAL BARREL SALES IN 2 YEARS : 100473
• ESTIMATED BARREL SALES IN 2 YEARS(2006 & 2007) : 149744
TABLE SUPPORTING DATA PROVIDED AHEAD……..

23. • Projected estimate achievable
• MMBC would break even by 2007
• Diversification of product would provide better exposure
• The present brand equity would boost Mountain Man Light
sales

25. Created by Rohit George, USICT, during an
internship by Prof. Sameer Mathur, IIM Lucknow.