Case Study of Mountain Man Brewing company

3.  Founded In 1925
 West Virginia’s Beer
 Premium Market leader for
almost 50 years
 Legacy Brew family owned
Business
Mountain Man
Brewing Company

4. Name Designation
Guntar Prangel Founder (1925)
Oscar Prangel Current President
and Owner
Chris Prangel Marketing Head

5.  Recent MBA Graduate
 Stood to inherit the family business
in 5 years
 Managing marketing operations of
the company currently

6.  Guntar Prangel in 1925, reformulated an old brewing recipe and
launched it as Mountain Man Beer.
 By 1960’s, Mountain Man Lager’s reputation as a quality beer was
well entrenched throughout the East Central region of the United
States.
 By 2005, Mountain Man was generating revenues above $50 million
and selling over 520,000 barrels
 Held top market position among Lagers for almost 50 years.

7.  High Brand equity in premium segment
 Sold at off premise location
 Company facing declining sales for the first time in its history
 2% decline in revenue
 Growth in light beer segment due to youth preferences

11. Chris wants to launch
Mountain Man Light
Beer for the youth to
drive up revenues
without damaging the
brand’s core equity of
Mountain Man Lager

13.  Pro’s- Original Brand name remains
intact and no need to alienate loyal
customers.
 Con’s- The Declining sales may
continue

14.  Pro’s- Less money required for
branching out and expansion in a
new market segment.
 Con’s- Core brand value may get
damaged.

15.  Pro’s- Core brand name intact and
brand can expand to different
markets.
 Con’s- Huge competition and huge
amount of money required for
marketing new brand.

17.  2% annual loss until 2010
 Regional revenue growth of 4%
annually
 Mountain Man shall steadily grow
its market share of regional beer at
the rate of 0.25% of total regional
market share annually

19.  Targeting new segments will
alienate the existing customers
 The core brand equity shall get
eroded
 Mountain Man shall never receive
the same loyalty among customers

22.  Light Beer is a growing market.
 The revenues are going down.
 Sticking with the core brand values
is also important, so Chris should
launch it under a different brand
name.

23. This presentation was created by
Tanmay Bhatia, Maharaja Surajmal
Institute of Technology, New Delhi
under the guidance of Prof. Sameer
Mathur, IIM Lucknow.