...Case: Mountain Man Brewing Company 1. What has made the Mountain Man Brewing Company successful? What is distinctive about MMBC’s product, customers and brand equity? Reasons why MMBC has been successful: * MMBC used their history and status as an independent family owned brewery to enhance the feeling of authenticity of their brand, which resonates with its core drinkers – blue collar, middle to low income men over the age of 45. * MMBC has very high brand awareness – in a recent study, MMBC Lager was rarted as the best known regional beer, unaided response rate of 67% from the state’s (WV) adult population * There is also a high perception of quality with MMBC Lager * MMBC has won multiple awards: * In 2005, won “Best Beer in West Virginia” for the 8th year in a row * In 2005, won “America’s Championship Lager” at the American Beer Championship What is distinctive about MMBC’s: * Product * Smoothness and drinkability * Distinctive bitter flavor * Slight higher than average alcohol content * Bottle also enhance overall image of product * Original 1925 design with coal miners authenticity and history * Brown bottle accentuating the beer’s dark color taste, ‘strong’ * Customers * In stark contrast to other domestic beers, drinkers of Mountain Man Lager skews heavily towards male, 81% compared to 58% for domestic light beers and 68% for domestic premium beers * Drinkers...
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...Mountain Man Brewing Company Mountain Man Brewing Company (MMBC) also known as “West Virginia’s Beer”. MMBC developed its brand equity as a symbol of toughness, authenticity, quality and uniqueness this with several other factors made MMBC successful. This legacy was started by Guntar Prangel in 1925 when he reformulated an old family recipe with quality ingredients. Brand Equity is defined as the $$$$ value contained in a specific brand. High alcohol content that appealed to the blue collar market along with these specific factors added to MMBC brand. It caters to regional tastes (dark, bitter). MMBC also has class cachet (it’s a miner’s beer) it’s family-owned, it’s perceived as being high-quality and it’s a legacy product. People seem to drink Mountain Man as a way to connect with past generations of their family. Brand played a critical role in beer purchasing decision. The promotion of MMBC was done by accentuating its dark color by packaging it in a brown bottle, with its original 1925 design of a crew of coal miners printed on the front. Mountain Man Lager was priced similarly to premium domestic brands such as Miller and Budweiser but below specialty brands such as Sam Adams. MMBC used its own sales force to focus on off-premise locations (liquor stores or supermarkets) with much success. Blue collar males purchased 60% of the beer they drank at these off-premise locations. The decline in MMBC was due to changes in beer drinkers preferences. This decline was happening...
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...The Entrepreneurs at Twitter: Building a Brand, a Social Tool or a Tech Powerhouse? MID-TERM ASSIGNMENT A Paper Presented in Partial Fulfillment of the Requirements of the Robert Kennedy College MBA Course Nr. 57582 - Entrepreneurship Prof. Francois Therin October 27, 2010 1 Declaration of originality of work I affirm that the attached work is entirely my own, except where the words or ideas of other writers are specifically acknowledged according to accepted citation conventions. This assignment has not been submitted for any other course at Robert Kennedy College or any other institution. I have revised, edited and proof-read this paper. th Signed the student, October 27 2010 Certification of authorship I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and fully disclosed in this assignment/paper/examination. I have also cited any sources (footnotes or endnotes) from which I used data, ideas, theories, or words, whether quoteds directly or paraphrased. I further acknowledge that this written work has been prepared by myself specifically for this course. Signed the student, October 27th 2010 Word count: 1952 without title pages, index of contents, executive summary and bibliography 2 “If you don’t know where you’re going, any road will get you there.” The Cheshire Cat in “Alice’s Adventures in Wonderland” by Lewis Carroll 3 Index of contents Executive Summary ...........................
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...Consumer choice of beer is driven by seven main attributes. These attributes are taste, price, the occasion being celebrated, perceived quality, brand image, tradition, and local authenticity. The functional reasons to choose a beer are taste, price, and perceived quality. The emotional reasons to choose a beer are the occasion being celebrated, brand image, tradition, and local authenticity. Some of the self-expressive reasons to choose a beer are tradition and brand image. The importance of these reasons will differ for each brand. There are some beer brands consumed because of the price, regardless of the other attributes and there are others drank because of tradition, regardless of other attributes. The attributes that contribute the most to Mountain Man Lager are taste, perceived quality, brand image, and tradition. One focus group participant expressed this by saying, “My dad drank Mountain Man just like my granddad did. They both felt it was as good a beer as you could get anywhere” (3). This quote encompasses not only the perceived quality associated with Mountain Man beer, but also the importance of tradition and the taste of the beer to Mountain Man consumers. These brand attributes are linked so firmly to the meaning of Mountain Man beer that it is my opinion that it will not transfer well to a light beer. For younger drinkers, the main consumer of light beers, the main attribute that affects what beer they purchase is price. They can’t afford higher priced, better...
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...Mountain Man Light: More Profits or Less Brand Equity? TMBA BBUS 506 A Michael Cavelero, Joel Engstrom, Nesreen 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...
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...Mountain Man Brewery is experiencing declining sales for the first time in the company’s history 1) Age Demographics • Mountain Man’s beer drinker’s Proof Central East Region Market Size overall Market Size MM Competes in MM share (Barrels) Profit $ 2004 38,678,720 4,718,618 2005 37,191,077 4,648,885 2006E 35,703,434 4,462,929 are getting older and decreasing their frequency of purchases • As Mountain Man’s beer drinker’s are aging the children of a Mountain Man drinker are not choosing Mountain Man beer as their primary choice 530,400 $4,887,636 520,000 $4,791,800 509,600 $4,695,964 2) Increased presence of large multi-national brands in Mountain Man’s distribution area (Case Fact) • Distributors supporting beer brands on basis of turnover and margins; dropping brands that do not contribute to bottom line • Large brands maintain economies of scale in brewing, transportation and marketing; Increased pressure 3) Distributors not willing to help build Mountain Man brand awareness • Mountain Man is not a popular customer to distributors because of small market share presents • Small shipments of under 600,000 barrels annually. Mountain Man provides a high quality beer that hard working men enjoy Loyal – Hard Working - Deserving A Mountain Man beer drinker • Blue Collar • Middle to low income men over age 45 • Purchase beer at off premise location (liquor stores) • Working man (trades) (large population of workers) • Since 1925 Oscar has...
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...Mountain Man Brewing Company was established as a family concern in 1925 in West Virginia by Guntar Prangle. The company brewed single-product beer, Mountain Man Lager, which won “best beer in West Virginia” and was elected as “America’s Championship Lager”. Mountain Man Lager featured quality, bitter favor and slightly higher-than-average alcohol content that uniquely contributed to the company’s brand equity. Mountain Man was a local market leader and distributed its lager in several states outside West Virginia. By 2005 Mountain Man was generating over $50 million in revenue with over 520,000 barrels of Mountain Man Lager sold. However, Mountain Man had been facing serious challenges. Its revenue was encountering a 2% yearly decrease in 2005 as it faced fierce competition. Light beer was sweeping the beer market and gained 50.4% of volume sales in market share in 2005. Thus, the objective of Mountain Man in this case study is to increase sales revenue by moving into the light beer market. Chris Prangel, son of the company’s owner, hoped to achieve three goals in his marketing campaign: 1.) To produce a light beer in the hope of attracting younger drinkers to the brand; 2.) To sustain the core brand equity of Mountain Man Lager; 3.) To maintain a steady share of its market segment by regaining the 2% annual loss. Mountain Man’s revenue was declining as it faced new products, which threatened to steal its customer base. However, Mountain Man met difficulties to make changes...
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...Brand to Light MOUNTAIN MAN BREWING COMPANY CASE ANALYSIS Pei-Chi Lee Rahul Lakhanpal Feridun Sarihan Saim Onur Tamer Weiqiong Vivi Zhuang March 29th, 2011 Problem Definition Facing decline in annual sales, changes in beer drinker’s preference and continuous growth in light beer sales in the whole beer industry, Mountain Man Brewing Company (MMBC) is standing at a crossroad as to whether or not introduce Mountain Man Light to expand consumer demographic into younger consumer segment and capture light beer drinkers. Advantages of doing so were obvious, however, the possibilities of diluting the Mountain Man brand equity, alienating the core customer base and cannibalizing sales of Mountain Man Lager were some real risks that could irreversibly damage the brand. Thus they need to address two issues: whether or not to launch Mountain Man Light and what strategy to employ for the introduction of Mountain Man Light. Pros of Launching the Mountain Man Light As the only beer category demonstrating consistent growth, light beer had been steadily gaining market share, increasing from 29.8% in 2001 to 50.4% in 2005. This was high growth rate that any beer manufacturer should not ignore (Exhibit1). Furthermore, Mountain Man Light would have different customer demographic and different distribution channels from that of the existing Mountain Man Lager thus minimizing the risk of cannibalizing Mountain Man Lager’s current sales. First of all, launching light beer would bring younger...
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...Mountain Man Brewing Company | To: | Chris Prangel | From: | 001706975 | CC: | David Nasser | Date: | 3/4/2013 | Re: | Bringing the Brand to Light | Comments: | For the first time in the company’s history, Mountain Man Brewing Company is experiencing declining sales in response to changes in beer drinkers’ preferences. Mr. Prangel’s response to this problem is introducing a “light beer” form of the popular Lager. In the past six years, the “light beer” industry as increased at an annual rate of 4% while sales of traditional beer has been declining annually by 4%. Although this seems like a probable solution, there are two major problems Mr. Prangel is facing: 1.) Mountain Man’s current target market will not approve of this new beer, and 2.) bringing in a light version of the Mountain Man Lager could ruin the brand image and ultimately destroy the company. Mountain Man’s biggest target market currently, and pretty much since it started in 1925, is males ages 45-54. Most of these males are blue-collar, hardworking males. It has been known as “West Virginia’s Beer” known for its authenticity, quality and its toughness. To the younger beer drinkers, the market the light beer appeals to, view Mountain Man beer as too strong and a “working man’s” beer. Not only do the younger beer drinkers have their negative thoughts about Mountain Man developed, but the blue-collar customers account for a huge percentage of sales. The brand loyalty rate for Mountain Man Lager is 53% which...
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...Mountain Man Brewing Company Case Report Company Overview Mountain Man Beer Company (MMBC) is a family-owned brewing company that is the maker of Mountain Man Lager, or “West Virginia’s beer.” Mountain Man Lager is known for its reputation as a quality beer and is targeted throughout the east central region of the United States. Mountain Man Beer Company is in the second-tier beer industry, and known for its distinctively bitter flavor and slightly high alcohol content. MMBC’s competitive advantage is its brand equity, and value placed on its product. With brand playing a crucial role in the beer-purchasing decision, MMBC has had great success with its brand standing out as a traditional beer with a loyal customer segment, of middle to lower income men over the age 45. Primary Problem The primary problem for Mountain Man Beer Company is if they launch the new product, Mountain Man Lager Light, will they lose their main customer base. Changes in beer drinkers’ preferences have left the company with declining sales for the first time in the company’s history. A strategic plan in response to the declining sales is to launch a new light beer in hope of attracting younger drinkers to the brand. Light beers are growing at an annual rate of 4%, while traditional premium beers have been declining annually. With younger beer drinkers, 21-27 years of age being the main target for light beer, and making up over 27% of total beer consumption, MMBC is considering launching a light beer...
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...Situation The popularity of light beer among young people was increasing. Mountain Man Brewing Company was considering whether to launch Mountain Man Light to attract more sales. Problem Mountain Man had a 2% decline in revenue each year while light beer was much more demanding. However, launching a new product was costly. Also, if they launch the new product, they don’t know if it should be under the Mountain Man brand name or using some other names. In all, it’s difficult to predict that if the new product is profitable. Analysis The light beer consumption was 50.4% of the total barrels in 2005 with a 4% 6-yr CAGR, which means the market size would be 22.8 million in 2010. The main consumer of light beer spent aged from 21-27, although they represented only 13% of the U.S adult population, they accounted for more than 27% of total beer consumption. And these numbers were still growing. It would be a huge opportunity to launch Mountain Man light beer and take up some market shares. However, there was another question: should this light beer product be introduced under Mountain Man brand name, or by a different name? If the new product was under Mountain Man, the established company image could help reduce advertising cost, but downside is that it might alienate existing customers and erode brand equity. If the product was introduced by some other names, there would be neither brand dilution nor cannibalization, but the company would have to invest more on advertising and...
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...Decision to be made Mountain Man Brewing Company is a family owned business 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...
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...customer base. Its product focuses on quality, sales team has helped a lot - "Grass roots" marketing, seventy percent consumed at home, and higher alcohol percentage. What is distinctive about MMBC’s product/ customers? As a product mountain beer has the following distinctive characteristics; smoothness and drinkability, distinctive bitter flavor, slight higher than average alcohol content, also enhance overall image of product, original 1925 design with coal miners’ authenticity and history, and brown bottle accentuating the beer’s dark color taste, ‘strong’. – Whereas, costumer distinctive characteristics would include the following; in stark contrast to other domestic beers, drinkers of Mountain Man Lager skews heavily towards male, 81% compared to 58% for domestic light beers and 68% for domestic premium beers. Mountain Man Lager drinkers are also on the lower income range compared to other domestic beers. In addition, drinkers of Mountain Man Lager also skew older, 64% over the age of 45 compared to 48% for domestic light beers and 49% for domestic premium beers. This customer segment seems to be very brand loyal and influenced by their reference groups. On the other hand, some study participant when asked said: “My dad drank Mountain Man just like my granddad did. How is MMBC’s promotion different and effective? Traditional advertising was not used to promote its products instead the company focused on grass roots marketing as a means of advertising the brand. By using...
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...Rochester Institute of Technology | Mountain Man Brewing Company: Bringing the Brand to Light | Advanced Corporate Financial Planning | Professor Testa 1/23/2012 | | | Shaun Levine Ranjan Maitra William Weintraub Taylor Wold Objective Complete a NPV analysis to see if Mountain Man Brewing Company should implement Mountain Man Light to its existing product lines: * SWOT Analysis on Mountain Man Lager * NPV analysis for Mountain Man Lager * NPV analysis for Mountain Man Light * NPV analysis on whole company * Strategic Options Background Guntar Prangel founded the Mountain Man Beer Company (MMBC) in 1925. Mr. Prangel had reformulated an old family brew recipe using a meticulous selection of rare, Bavarian hops and unusual strains of barley, resulting in flavorful, bitter-tasting beer which the Prangel family launched as Mountain Man Lager. By the 1960s, Mountain Man Lager’s reputation as a quality beer was well entrenched throughout the East Coast region of the United States. It was February 20, 2006, in the New River coal region of West Virginia. Chris Prangel, a recent MBA graduate, had returned home a year earlier to manage the marketing operations of the Mountain Man Beer Company, a family owned business he stood to inherit in five years, when...
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...Mountain Man Brewing Company! ! Case Study! ! ! Group Eleven ! Olusegun 9286 | Saranya 9290 | Omolola 9734 | Janet 10033 | Joseph 8605 ! SITUATIONAL ANALYSIS AND RECOMMENDATION Situational Analysis Mountain Man Beer Company (MMBC) has been a huge Success, and for the first time, the company is experiencing decline sales. It was discovered that Drinker’s preferences and taste change to light beers, and the company needs to take on a different approach to spark the sales. Most especially in the customer segment of the younger drinkers, and they were identified as the key customer segment, aged 21-27, and accounted for more than 27% of the total beer consumption. 42% of the light drinker’s were also woman. These particular customer segments are getting their preferences from other competitors of Mountain Man beer Company, which lead to the 4% decrease in the sales of Mountain Man Beer. Faced with the Prangel legacy and inheritance of the company, Chris Prangel, thinks that launching a light beer will attract a younger market segment. Others on the MMBC management team currently challenge this because they think that a light beer may stray away from the current brand strategy. The MMBC management team also feels that launching a light beer would be very expensive and could hurt Mountain Man’s key customer base and brand equity created through a grass roots and word-of-mouth marketing mix. ! Analysis of Threats and opportunities If Chris...
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