...MMBC Case Analysis Mountain Man Brewing Company Case Analysis Mountain Man Brewing Company (MMBC) is a beer brewer and has so far sold just one brand under its brand called the Mountain Man Lager. The management is deciding to extend its product brand and introduce a Light Beer called Mountain Man Light. In the do-nothing scenario, MMBC projections are: Sale Projections 2005 MMBC Lager Profit Margin 6.2% 5.9% 5.6% 5.3% 5.0% 4.7% 2006 2007 2008 2009 2010 $50,440,000 $49,431,200 $48,442,576 $47,473,724 $46,524,250 $45,593,765 Chris is considering launching a Light Beer product to extend the MMBC product portfolio. However, in order to be successful, a lot of factors need to align with his strategy: Cannibalized sales must make up for profits lost and incidental expenses incurred to launch the new beer product The Lager brand must be preserved as a separate brand from the Light beer in order to keep milking the brand Marketing communications for the two products should be distinct and not overlapping Capacity of the current plant should be enough to meet potential splurge in demand, in case the product is successful Relationships will need to be established with a new distribution channel (on-premise) Budgets must be able to support the advertising plan of action Management buy-in is a must to ensure commitment to this product launch and is vital for its sustenance The goal of Chris’ plan should be to: a. In the short term, transition the...
Words: 829 - Pages: 4
...Project International Marketing Submitted by: M2 Group 2 173 Varun Raj 047 Devdutt Bhatt 165 Swati Rakesh Choudhary 114 Poulomi Chatterjee 042 Barkha Dubey 170 Twinkle Wadhwa 028 Anupam Narayan Sharma Celebrating over 150 Years of Brewing Excellence! UBL has an association with brewing dating back over nine decades, starting with 5 breweries in South India in 1915. The popularity of their beers soon spread and within a short time, bullock carts carrying huge 'hogsheads' of Kingfisher became a familiar sight in Madras, the Nilgiris and Bangalore, the headquarters of United Breweries Ltd. Almost immediately, the brew from UB became a favourite, especially with the British troops. So began the history of Beer in India... From bullock cart-loaded barrels or 'hogheads' of frothing ale, the beer business has gone on to become the undisputed 'king' in the Indian beer market. UBL today boasts an impressive spread of own and contract manufacturing facilities throughout the country. Here, innovative, creative and aggressive marketing is complemented by a strong distribution network. A management focused on building brand equity on one hand and exploiting it to the hilt on the other. Kingfisher, the flagship brand of United Breweries and the best-selling Indian Lager worldwide, is now available in over 55 countries and is exported from the UK to 19 Continental European Markets and Canada and from...
Words: 3960 - Pages: 16
...recession overall. Beer companies are expanding their market as well, creating more beers for different life styles. Other liquor companies are doing the same. Consumer Trends First off, alcohol sale in 2008 which happened to be the first year of the recession, increased by more than 9%, from the summer of 2010 to 2011 sales grow 10%. There was a slump year in there but the sales still were in the Positive with 1%. During this same time period unemployment grew to 9.6% (AaronSmith, 2011). There are two main breweries in the States one be Anheuser Busch and the other being Miller/Coors. They are in control of about 81% of the market in the United States; with beer alone bring in 87 billion dollars alone in 2008 (most of the sales we domestic produces) and has slowly rose to over 91 and a half billion just last year and is projected to be at over 92 billion in 2013. The United States makes up only 16% of the world alcohol. Europe accounts for 57% and the Asia-Pacific accounts for 17%. In the United States 20% of the consumer are under the legal drinking age 21 (Agriculture and Agri-Food Canada, 2010). Changing for Social Trends Beer has had to change its products to compete with trends and promote sales with the youth; Bud Light came out with Bud Light with lime 2008, Bud Light Golden Wheat 2009, and Bud Light Platinum the beginning of this year. With new taste of the lime and wheat was appealing and platinum is Bud Light’s premium beer for a light beer is 6% by volume compared...
Words: 824 - Pages: 4
...DESK RESEARCH TO EXAMINE THE INFLUENCE OF MARKETING AND ADVERTISING BY THE ALCOHOL INDUSTRY ON YOUNG PEOPLE’S ALCOHOL CONSUMPTION Research prepared for the World Health Organization by the Centre for Social Marketing at the University of Strathclyde Emma Cooke, Gerard Hastings and Susan Anderson March 2002 Acknowledgements For acquisition and translation of international data: Jill Bain, Marina Biniari, Liliana Carcamo and Ingrid Kajzer. For comments on the final draft: Anne Marie MacKintosh For administrative support: Kathryn Angus and Aileen Paton. CONTENTS Page No 1.0 INTRODUCTION 1 2.0 MANAGEMENT SUMMARY 2 3.0 METHODOLOGY 4 4.0 RESULTS 7 4.1 Advertising 7 4.1.1 Econometric Studies 7 4.1.2 Consumer Studies 11 4.2 Other Forms of Marketing 15 4.3 Developing and Transitional Countries 21 REFERENCES 25 1.0 INTRODUCTION At the World Health Organization Ministerial Conference on Young People and Alcohol in Stockholm (February 2001) considerable concern was expressed about the nature and pervasiveness of advertising and marketing by the alcohol industry. Explicit examples were shown of alcohol promotion exploiting the themes of sexual, sporting and lifestyle success, often in direct violation of advertising codes. Furthermore, many of the advertising examples displayed images of excessive consumption. In addition, the Conference noted...
Words: 16650 - Pages: 67
...that brewed one beer, Mountain Man Lager, also known as “West Virginia's beer”. Mountain Man Lager held the top position among lagers in West Virgina for almost 50 years and had respectable market share in most states. The company over the years relied on its history and its status as an independent, family owned brewery to create an aura of authencity and position the beer with its core drinker – blue collar, middle to lower income men over age 45. However, Mountain Man Lager was a legacy brew in a mature business. By 2005 Mountain Man generated revenue of just over $50 million and primarily distributed Lager in Illionis, Michigan, Ohio and its native West Virgina. However, the recent changes in the beer drinkers' preferences, the company is experiencing decline in sales. Over the previous six years light beer sales in the United States had grown at a annual rate of 4% while traditional premium beer sales had declined annually by same percentage. With this on going trend Mountain Man Brewing Co. was set to loose 2% each year annually, see section A. for projections for next 4 years. In the lights of such industry trend Chris Prangel, needs to decided whether to produce Mountain Man Light, a light beer formulation of Mountain Man Lager, in the hopes of attracting younger drinkers to the brand. Alternatives Mountain Man Brewing Co. has been facing serious challenges from maturing market and new products which threaten to steal its customer based. Light beer is sweeping the...
Words: 1368 - Pages: 6
...categories – IMFL (Indian Manufactured Foreign Liquor which includes whiskey, rum, brandy, vodka & gin), Beer and Country Liquor (cheaper, spiced liquor). * Each of these segments has a volume of between 230-260 million cases per annum. Hence, the market is divided almost equally by volume. * Overall growth of the market is ~8% per annum, mainly driven by IMFL and beer, Country liquor is a slow growth market. * Beer has been consistently growing at over 15% per annum over the last few years. * However, the IMFL market is much larger in terms of value – by the sheer difference in price per bottle. Hence, the IMFL market would be over 65% by value and beer would be ~15% by value. * FDI – 100% FDI is permitted in the alcoholic beverages sector. * Taxation is high, Price is controlled – Excise duties, sales tax, VAT and various intermediary margins contribute bulk of the retail price. * In most states, the government tightly controls the retail price of liquor; a tender process is used to determine prices and volumes that will be bought by the distributors. * It is estimated that a significant portion of sales in India goes unreported due to taxation structures. * Regulatory structure creates high entry barriers-Independent Licenses are required to produce, bottle, store, distribute or retail all liquor products. * The Indian beer market is oligopolistic, with the top 2 brands accounting for nearly 80% of the volumes. * The top 3...
Words: 535 - Pages: 3
...Tsingtao Beer, one of the oldest brewery brands in China, can trace its colonial roots back to 1903, when German forces occupied Qingdao (Coastal city located in Shandong province in China). Beer businessmen from Germany and British founded the Tsingtao brewery factory in Qingdao and started to brew in the European way. Since Japan seized China from Germany during the First World War Japanese took the control of Tsingtao from Germans and run the company in effect until 1945. As the People’s Republic of China was established in 1949, Tsingtao became state-owned enterprise. It was privatized in 1990s with the formation of Tsingtao Brewery Company Ltd. and then issued H-shares in Hong Kong which were listed on the Stock Exchange in 1993, being the first domestic enterprise listed on an overseas stock exchange. Following this, in the same year Tsingtao issued A-shares in China, which were listed on SSE. Shareholders. When Tsingtao was listed on Hong Kong stock market, Anheuser-Busch, the world biggest brewery, acquired 4.5% of shareholding in order to enter Chinese market and extended its shareholding to 27% in 2002. As the Interbrew, Belgium brewery company, merged Anheuser-Busch in 2008, Japanese Asahi group replaced ABInBev’s position with about 20% of shareholding, which is the 2nd largest majority shareholder after Tsingtao Group. (Please see the appendix 1, “Shareholders”) Performance. At present, Tsingtao Beer occupies leading position in the domestic beer industry...
Words: 1202 - Pages: 5
...1°) How would you explain the Guinness pricing strategy and the underlying assumptions about consumer behavior when Diageo reports for 2005 that in the UK and Ireland the Guinness sales volume fell by 3 per cent, but a value growth of 4 per cent was achieved in both markets, mainly due to price increases? 2°) Motivated by the success of this pricing strategy, should Diageo continue to increase the price of Guinness? HOW TO EXPLAIN GUINNESS PRICING STRATEGY ? - Pricing: Not just a financial and commercialization part => belongs to marketing and sales strategy - Pricing affects : - sales - market share - revenue - profit => Right pricing : a direct implication to the product success in the market => The product needs to remain PROFITABLE Pricing strategy needs to reach the main objectives of a company : PROFIT – TURNOVER – VOLUME - MARKETSHARE -Price sensitivity of shoppers differs between the distribution channels Discount hypermarket : people check carefully to buy a beer-pack Bars / Pubs : ready to pay much more for a beer than in the grocery -3 Ways to determine a price : - cost pricing : based on the company expenses - competitor pricing : based on the competitors prices - value pricing : how the product is perceived by the customer ? An aggressive price increase policy - A National icon : recognized worldwide •55% of the world stout market •Market leader in 4/7 regions : •Western Europe / North...
Words: 2059 - Pages: 9
...Zadah, David Tobey 5/3/2010 1 | P a g e Introduction "We are not here to sell a parcel of boilers and vats, but the potentiality of growing rich beyond the dreams of avarice." – Samuel Johnson, ‘On the Sale of Thrale’s Brewery’ “Some of those coal miners could really drink some beer. We would always stay until closing time, and it happened so many times that the busses were not running anymore. Many weekends we’d get back early in the morning, and we had to be at the coal mines at six in the morning. All we could do was change our clothes, take our lunch bag and go to work.” – Jeff Noordermeer, ‘Fifty Years of My Life’ It should surprise no one that West Virginia is beer country. Originally “beyond the pale” of European settlement in Virginia Colony, the Appalachian Mountains were nevertheless welltraversed by Scottish traders hawking spirits to the resident Cherokee. The cessation of the French-Indian war in the 1760s brought permanent settlement by Welshmen, Germans and even more English – all of whom fancied a solid stout. The 1800s saw the start of the long coal boom that transformed Appalachian society, converting subsistence farmers into coal miners and commercializing beer production to meet rising demand. That trend continues today: so popular is beer that West Virginia University has classes on the subject. Mountain Man Brewing Company exemplifies this history. Founded in 1925 by Guntar Prangel, a coal miner with a home brewery, and marketed largely...
Words: 2317 - Pages: 10
...partners, and society at large. (www.marketingpower.com) This practice dates back to the 1450’s when the Gutenberg invented the first movable type, which allowed mass printing to be possible for the first time. Marketing and advertising has since evolved from magazines, to billboards, radio, television, telemarketing, print ads, and now with the digital age booming, has become a hyper competitive industry where companies will do just about anything to attract a customer. Doing “just about anything” is where marketers and advertisers operate on a very thin line as to what is considered ethical. This strategy now includes tactics such as the use of alcohol, sex, and the targeting of children to attract consumers. Companies use the power of beer advertisements at college sporting events, sexually explicit advertisements in venues viewed by children and teenagers, and use the developing minds of small children as targets in the advertising of certain products. While these strategies may be legal, they are not always ethical. In this paper, I will challenge the use of content, tactics, perception, and target audience, while applying ethical tests and theories regarding a company’s marketing strategies. A company must have ethical marketing policies to guide their pricing, advertising, research, and competitive strategies. (www.boundless.com) My analysis will determine if the aforementioned strategies follow this standard code of ethics. Does Alcohol hit its Target? Since...
Words: 5845 - Pages: 24
...Executive Summary Started in the year 1925 by Guntar Prangel Mountain Man Brewing Company (MMBC) was a well-entrenched company in the East Central US by 1960. Consecutively the company grew as a legacy brewery, gathering a very strong brand loyalty and positioning. Known for the authenticity, quality and taste the company grew out to be a market leader in the currently matured business. However, off late the company has been witnessing a drop in sales for their core beer product the “Mountain Man Leger” in contrary to the growing beer sales in the US. The following document encapsulates a detailed analysis of the different problems the company started to face, the strategic objectives available and the most viable option that the Protagonist Chris Prangel’s (son of founder Guntar Prangel) should be taking. Further the Document also discusses the competitive challenges that the company phases The document also addresses the dilemma Chris faces whether to making reforms in business strategies or to continue with the existing sale and product line model and explains the tradeoffs that lie therein. Q2. Start by summarizing the chief protagonist’s decision tree. What are the key strategic issues that the firm faces? What are the options in terms of actions and what outcomes need to be enabled? Decision Tree: Chris has a conundrum to address, basically the growth strategy that he would be adopting in terms of a natural and steady growth which is depicted above as...
Words: 2390 - Pages: 10
... * Give the dogfish head company product a new identity. * Create more diverse product to get the sustainability in the market by adding different types of flavour and to experiment different types of natural resources. * To promote the dogfish head product, this company can mainly focus into the target consumer : Old age people, to create more loyal customer, to arrange more consumer appreciation events, and give away promotional gifts. Dogfish head company should have a product tagline which will attract customers to consume more beer. The more customers dogfish will get, the more revenue they will be generated to have further production. Tagline is something that gives consumers some kind of feeling about dogfish head product and they starts thinking like they are part of the dogfish head family. The inherent meaning of this tagline will not only comfort the drinkers but also gain the popularity amongst the youth. Dogfish head company can get the sustainability by introducing the new diverse product with local natural flavour which is rare and inimitable. They already tried some of the different product by using diverse resources like full-bodied brown ale with smooth hints of pumpkin, brown sugar and spices. So, by experimenting on some of new local resources, they can get benefited as because local resources would be lots more familiar to the local customers. And the local resources would be relatively cheaper than outside sources. Even though they come...
Words: 536 - Pages: 3
...calculation of office chairs in the solidworks * Design and manufacture hospital beds * Achievements: * Well done the internship with the mark was 9.0. | 8/2012 – 9/2012Company name: Robotics 3TWebsite: http://robot3t.com/Position: Mechanical design | * Job descriptions: * Design 3D in the SolidWorks. * Created assembly drawings, including bill of materials and detail drawings, for machining * Achievements: * Well done my assigned tasks * Leave reason: * To spend much more time on the thesis | 5/2013 – Present Company name: Pitesco Website: http://pitesco.com/ Position: Technical support | * Job descriptions: * Support the Sales Department during the pre-project: helping them to identify customer needs * Provide the solution and support for the automatic technique of the customers * Support for sales, survey...
Words: 749 - Pages: 3
...Booze clues As of November 2013, Texas has forty-nine ‘Wet’ counties and eleven “dry” counties. The definition of a dry county is; a county which bans the sale of all alcoholics. Opposite to this, a wet county is one that allows the sale of alcohol. However, this is the simplest way of looking at alcohol sales in Texas. Counties and localities have a identity crisis, they try to be “Texas independent” while at the same time mirroring the policies of other Bible belt localities outside of the state. As you take a closer look at wet counties in Texas, you will find that different localities have different levels of allowable alcohol sales and are referred to as ‘moist’ or ‘partly wet’. Designations are made based on the type of alcohol allowed and whether or not it can be purchased for home consumption, or be purchased at a licensed bar or restaurant. Religious groups primarily voice the arguments FOR dry counties; they say that alcohol has the potential to destroy families and wreak havoc on communities. In their eyes, limiting access to alcohol can curtail consumption thus lowering the chance of alcohol abuse. They also argue that banning alcohol sales can make it more difficult for younger individuals to drink underage thus protecting youth from the dangers and evils of the alcohol. The arguments for having completely wet counties are loud and clear. First, it represents a fundamental right for individuals to drink if they choose to, look at prohibition. All of our group...
Words: 578 - Pages: 3
...Cameroon. However, the famous dark stout with the white, creamy head was causing some strategic concerns for Diageo. In 1999, for the first time in the 241-year history of Guinness, sales fell. In early 2002 Diageo CEO Paul Walsh announced to the group’s concerned shareholders that global volume growth of Guinness was down 4 per cent in the last six month of 2001 and, more alarmingly, sales were also down 4 per cent in its home markets, Ireland. How should Diageo address falling sales in the centuries- old brand shrouded in Irish mystique and tradition? The changing face of the Irish beer market The Irish were very fond of beer and even fonder of Guinness. With close to 200 liters per capita drunk each year- the equivalent of one pint per person per day- Ireland ranked top in worldwide per capita beer consumption, ahead of the Czech Republic and Germany. Beer accounted for two-thirds of all alcohol bought in Ireland in 2001. Stout led the way in volume sales and accounted for 40 per cent of all beer value sales. Guinness, first brewed in 1759 in Dublin by Arthur Guinness, enjoyed legendary Status in Ireland, a national symbol as respected as the green, white and gold flag. It was by far the most popular alcoholic drink in the Ireland, accounting for nearly one of every two points of beer sold. Its nearest competitors were Budweiser and Heineken, which held 13 per cent and 12 per cent of the market...
Words: 2021 - Pages: 9