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 compete in the light beer advertising market.

Company will face financial problems if the new product fails to take off. Important to come out with a good marketing campaign that effectively utilise all the resources. Light beer would help MMBC gain share in on premise locations: restaurants and bars.

Funds needed for advertising campaign, staff costs and ongoing marketing expenditure