This document discusses options for Mountain Man Brewing Company to address a 2% decline in revenue and rising popularity of light beer among youth. The options are: 1) introduce a light beer under their brand name, 2) do not introduce light beer and focus on their core brand, or 3) introduce light beer under a different brand name. Introducing a light beer under their brand carries risks but could attract new customers and increase revenue. Not introducing light beer leaves money on the table but avoids brand dilution. Using a new brand name avoids dilution but would require building a new brand. The document analyzes the pros and cons and predicts introducing light beer under their brand could become profitable by 2007 if it captures 0.25% more

1. MOUNTAIN MAN
BREWING COMPANY:
BRINGING THE BRAND TO
LIGHT
BY:
TWINKLE CHAUHAN(MB009)
HAROD MANSI (MB014)
VISHAL VAJAR (MB046)

2. INTRODUCTION
• founded by guntar prangel in 1925.
• family owned business
• legacy brew
• reputed as west virginia’s beer
• strong brand and premium segment market leader for
almost 50 years
• popular among blue collar working men

3. CURRENT SITUATION
mmbc :
• high brand equity in premium segment
• mostly sold at off premise locations
• decline in revenue by 2%
overall :
• growth in light beer segment by 4%

4. ISSUES:
 2% decline in revenue
 Rising popularity of light beer
among youth

5. WHAT WE DO NEXT?
Chris Prangel thought : How to boost revenue?
1. By attracting young drinkers via a light beer category.
2. Encourage loyal consumer base to consume more or expand
in the same domain.
But the blue collar customers already
accounted for a large percentage of sales,
which meant near saturation in that
segment.

6. OPTIONS
1. Introduce light beer under brand name
2. Don’t introduce light beer, focus on core brand
3. Introduce light beer under different brand name
Let us look at some market and demographic statistics to support our
arguments for and against these options.

7. COMPETITIVE MARKET SHARES

8. BEER DRINKERS PROFILE

9. OPTION 1 Introduce light beer under brand
name
Cons:
 Brand dilution
 Capture shelf space of Lager
 Loss of core customers
 Traditional advertising needed
unlike typical grassroots method.
Introduce light beer under brand
name
Pros :
 New target segment
 Increase in revenue
 Lower advertisement cost than
new brand
 Leverage from existing brand
name

10. Option 2: Don’t introduce light beer
Option 2:
Don’t introduce light beer
Pros:
 No reduction in brand equity
 Core customers stay satisfied
 No additional costs
Cons:
 Invite imminent danger to firm in
future
 Leave a high potential market
segment untapped

11. Introduce Light Beer under different brand
name
Pros:
 New target segment
 Increase in revenue
 No brand dilution
Cons:
 High advertising and operation
cost
 Need to build new brand
 Many other light beer
competitors in market

12. Some future predictions Chris
arrives at after considering
revenue and net profit projections :
• Expected profit for firm would occur from 2007, when the new product
sales would cross breakeven and cover investment costs.
Assuming Mountain Man Light captures 0.25% of
market share every year.

13. KNOW YOUR RISK
• Growth rate in Mountain Man Light in market share annually might not
be fulfilled
• Competition is heavy amidst multiple light beer brands and product
extensions of big brands
• Young drinkers’ ‘anti big- business’ mentality and other factors might not
create same loyalty as blue-collar workers.

14. WHAT ABOUT THE ALTERNATIVES
Not introducing Light Beer might lead to crucial decline of the company in
future years.
Introducing Light Beer under a separate brand name would lead to
additional costs, and effort to create a new brand.

15. CONCLUSION
•Chris prangel should go ahead and launch mountain man
light beer.

16. THANK YOU !