...Mountain Man Brewing Company:Bringing the Brand to Light Market definition: American Beer Industry Market size: $75 billion industry Industry trends: y Over the previous six years, light beer sales in the United States had been growing at a compound annual rate of 4%, while traditional premium beer sales had declined annually by the same percentage. y U.S. per capita beer consumption had declined by 2.3%, largely due to competition from wine and spirits-based drinks, an increase in the federal excise tax, initiatives encouraging moderation and personal responsibility, and increasing health concerns. y Economies of scale of large national brewers. y Key consumer segment was younger drinkers (13%) who preferred light beer and accounted for 27% consumption. SWOT analysis Strengths Evidence Implications Market leader and established It had held the top market Strong brand awareness brand name. position among lagers in West motivates consumers to Virginia for almost 50 years. purchase Lager. Ability to leverage awards as ³American Champion Lager´. Strong brand equity Mountain Man Lager¶s distinctively bitter flavour and slightly higher thanaverage alcohol content that uniquely contributed to the company¶s brand equity Estimated cost of $10 million to $20 million in TV advertising. Mountain Man is able to leverage its brand equity and reputation to new products Weaknesses New brand extension will spread already thin resources of the company. Company does not have the budget to...
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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’s Positioning in the East Central Market According to Alvin J. Silk, a positioning statement is designed to define who are a company’s customers, what set of needs does the product fulfill, and why is the product the best one to fill those needs (2006, p. 90). I found this question challenging because a positioning statement should define “the place the firm wishes to occupy in its’ target customers’ minds” (Silk, 2006, p. 90). In the case of MMBC, the definition of the target customer was under discussion. For purposes of the first question, I developed the following positioning statement based on what I believe was the historical perspective of MMBC. Mountain Man Brewing Company produces Mountain Man Lager; the most authentic regional beer for working class East Central Americans, among all premium domestic beers, because of its distinctive quality, bitter flavor, slightly higher than average alcohol content and competitive price (Abelli, 2007, pp. 2-3). This positioning statement would help MMBC to target its product toward the blue collar worker in the East Central region. While not specifically stated in the case, I believe Mountain Man Lager met the following needs of this target audience: a need to feel toughness, pride in an East Central quality product, and an affordable price. MMBC’s strategic focus on this target audience helped it to be successful in the highly competitive market for premium beers, even when other local brewers...
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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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...Problem: Mountain Man Brewing Company (MMBC) was founded in 1925 by Chris Prangel’s father with one flagship brew, Mountain Man Lager. For the first time in its history, the brewery is facing declining sales. In light of this decline, Chris Prangel, a second generation brewer, is considering launching Mountain Man Light beer. The light beer market has experienced a 4% annual growth over the past six years and represents an opportunity to boost sales by entering a previously untapped market. Background: MMBC relies on its core image of being a family owned, independent brewery. MMBC’s beer formula is associated with quality. The specialty hops and barley in Mr. Prangel’s recipe have added to MMBC’s reputation of superior quality in the East Central region. In particular, the hops used in this recipe create a “bitter” flavor, which differentiates it from their competition among other mass-produced beers. MMBC’s bottles take differentiation one step further; the lager is bottled in a dark brown glass with original images of 1925 of coal miners printed on the front label. Launch: If Prangel were to launch a new light beer under the MMBC brand name, the brewery would be able to capitalize on the Mountain Man Brewing label and reputation. MMBC’s core demographic—males between the ages of 45-64 years old—is shrinking. The growing consumer segment for beer consumption is younger drinkers between the ages of 21-27 years old, which accounts for over 27% of the total...
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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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...Mountain Man Brewing Company (MMBC) is a single product brewing and local distribution company based in West Virginia. It was founded by Guntar Prangel who reformulated an old family brew recipe, resulting in a flavorful bitter tasting beer that was launched as Mountain Man Lager or West Virginia Beer. This signature product went on to claim a reputable market share for an independent family owned brewery, in the East Central region of United State by 1960s.The company developed a brand image and reputation among its core drinkers; the blue collars and middle to low income men over 45, while upholding the unique and authentic family business model based on quality. In 2005, MMBC was generating revenues of over $50 million and selling over 520,000...
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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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...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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...Environmental Responsibility1 Although most of the companies frequently cited as examples of ethical and socially responsible firms are large corporations, it is the social responsibility initiatives of small businesses that often have the greatest impact on local communities and neighborhoods. These businesses create jobs and provide goods and services for customers in smaller markets that larger corporations often are not interested in serving. Moreover, they also contribute money, resources, and volunteer time to local causes. Their owners often serve as community and neighborhood leaders, and many choose to apply their skills and some of the fruits of their success to tackling local problems and issues that benefit everyone in the community. Managers and employees become role models for ethical and socially responsible actions. One such small business is the New Belgium Brewing Company, Inc., based in Fort Collins, Colorado. History of the New Belgium Brewing Company The idea for the New Belgium Brewing Company began with a bicycling trip through Belgium. Belgium is arguably the home of some of the world’s finest ales, some of which have been brewed for centuries in that country’s monasteries. As Jeff Lebesch, an American electrical engineer, cruised around that country on his fat-tired mountain bike, he wondered if he could produce such high-quality beers back home in Colorado. After acquiring the special strain of yeast used to brew Belgian-style ales, Lebesch returned home and...
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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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...Case Overview/Selection/Assignments BrandScape Dates and Assignments Because of the tight seven-week scheduling of this course, we need to arrange for teams and team assignments for both the BrandScape and Case Assignments right away. To facilitate this process, the assignments and dates are outlined here. Please, as soon as is possible, sign up for the BrandScape date as well as the case of your choice. Please indicate your team by name, names of all team members, and your preferences with #1 (Most Desired) through and including - #5 (Least Desired.) If you’re not yet on a team, please let me know, along with your preferences. I’ll try to accommodate preferences as much as I can. (On the other hand, I will need your forbearance, because it usually is not possible to give everyone their first choice.) Team Name: _______________________________________________ Team Members:____________________________________________________ _____________________________________________________________ BrandScape Dates/Assignments. (Be Sure to check the brand you select with Dr. Oliva) BrandScape 1, Wednesday, November 7, 2012 Preference # _______(1Most Desired-5 Least) BrandScape 2, Monday, November 12, 2012 Preference # _______ BrandScape 3, Monday, November 26, 2012 Preference # _______ BrandScape 4, Monday, December 3, 2012 Preference # _______ BrandScape 5, Monday December 10, 2012 Preference # _______ BrandScape 6, (7) Wednesday...
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...Analysis Calculations 11 Exhibit 4 – MM Lager Cannibalization Calculations 12 Exhibit 5 – MM Light Marketing Strategy 15 What is the current situation? Mountain Man Brewing Company (MMBC) is a family business founded in West Virginia in 1925 by Guntar Prangel. The company is now operated by Guntar’s grandson, Oscar. Oscar’s son, Chris, is slated to inherit the business in five years when his father retires. Mountain Man (MM) Lager is the flagship product and the only beer currently produced by the company. The recipe for the lager was based on a refined family recipe and is known for its flavorful, bitter taste. By the 1960s, the lager had established itself as a legacy beer with a rich history, and the company continues to maintain its independent, family-owned status which appeals to its core drinkers. By 2005, the popularity of MM Lager in the East Central region of the U.S. had grown to generate revenues of just over $50 million, and the beer held the top market position among lagers in West Virginia. MM Lager won “Best Beer in West Virginia” in 2005 for the eighth year in a row. What has made MMBC successful & distinguishes it? MMBC has enjoyed success because of several factors. Although it is a regional brewer, it has superb name recognition. A recent study showed that Mountain Man Lager was considered by many to be West...
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...A Rose for Emily Summary How It All Goes Down You might want to look at our discussion of the novel's setting before you enter here, or at least know it's there to help if you get tangled up in this story's crazy chronology. Also keep in mind that the narrator of this story represents several generations of men and women from the town. The story begins at the huge funeral for Miss Emily Grierson. Nobody has been to her house in ten years, except for her servant. Her house is old, but was once the best house around. The town had a special relationship with Miss Emily ever since it decided to stop billing her for taxes in 1894. But, the "newer generation" wasn't happy with this arrangement, and so they paid a visit to Miss Emily and tried to get her to pay the debt. She refused to acknowledge that the old arrangement might not work any more, and flatly refused to pay. Thirty years before, the tax collecting townspeople had a strange encounter with Miss Emily about a bad smell at her place. This was about two years after her father died, and a short time after her lover disappeared from her life. Anyhow, the stink got stronger and complaints were made, but the authorities didn't want to confront Emily about the problem. So, they sprinkled lime around the house and the smell was eventually gone. Everybody felt sorry for Emily when her father died. He left her with the house, but no money. When he died, Emily refused to admit it for three whole days. The town didn't think...
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...Environment of Organizations Diagnosing Culture Managing Culture LO 1 Describe how environmental forces influence organizations and how organizations can influence their environments. p. 48 Distinguish between the macroenvironment and the competitive environment. p. 48 Explain why managers and organizations should attend to economic and social developments. p. 50 Identify elements of the competitive environment. p. 55 Summarize how organizations respond to environmental uncertainty. p. 63 Define elements of an organization’s culture. p. 72 Discuss how an organization’s culture affects its response to its external environment. p. 72 LO 2 LO 3 LO 4 LO 5 LO 6 LO 7 Management Close-Up HOW CAN LARRY BLANFORD KEEP GREEN MOUNTAIN COFFEE ROASTERS PERKING? In 1981, Bob Stiller began serving his coffee to custompiece of pie or a donut. Not until the mid-1990s did cofers in a tiny Vermont café. He was focused simply on fee brewing became an art form, as the Starbucks-led giving them the highest-quality freshly roasted coffee coffee revolution began to sweep across America. at a reasonable price. As his Green...
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