MOUNTAIN MAN BREWING COMPANY|
Executive Summary / Company Background
Mountain Man Brewing Company (MMBC) has held a top market position on lagers in West Virginia for almost 50 years with its only product, Mountain Man Lager. MMBC is an old school regional brewery whose bottle label is its original 1925 design depicting a crew of coal miners, as they are located in the New River coal region of West Virginia. Mountain Man Lager is priced similarly to premium domestic brands such as Miller and Budweiser, as it has strong brand recognition, especially with the blue- collar market and male beer drinkers. Mountain Man Lager’s reputation as a quality beer is well entrenched, as customers frequently make comments on the beer preference being passed from one generation to another as well as the higher alcohol content being a positive characteristic.
For the first time in the company’s history it is experiencing declining sales, and the company wants to respond to this decline. As there is a significant trend toward light beer popularity in general, younger consumers prefer light beer and typically consumed alcohol more frequently than other age categories and in larger quantities. It is through this marketing segment that Chris Prangel, manager of marketing operations at MMBC, envisions company growth through establishment in the light beer market. Others at MMBC, however, feel core competency of having a single product and the great brand awareness of Mountain Man Lager is what allows the company to be profitable. Additionally, it is felt by some that trying to expand with a light beer product will not only make MMBC less efficient, but retract from their already well-established blue-collar customer base with their darker colored, higher alcohol content working man’s beer. Analysis / Recommendations
It was observed that 27 percent of beer sales are accounted for by...