A) Internal environment
Mountain Man Lager is a family owned brewing company, and is known as West Virginia’s beer.
Change of CEO, as the founder and president Oscar Prangel retires, leaving the company to his son Chris Prangel.
Due to changes in beer drinker’s preferences, the company is experiencing a decline in sales for the first time in the company’s history.
Mountain Man’s 2005 revenues are down by 2% relative to the prior year, while premium beers are declining annually by 4%.
Because of its popularity in the East Central region, it has held the top market position in West Virginia and Illinois for 50 years.
Mountain Man’s current marketing goals:
Maintain a steady share of its market segment by regaining the 2% annual loss and retain more than 40% of the market in the East Central region. Become leaders in the East Central region by winning “best beer” in each state. Maintain brand equity and customer loyalty with Mountain Man Lager. These goals can be achieved if they are consistent with the current trends and competition. If Mountain Man Brewing Company wants to regain its leadership in their region, they must change their product and their marketing strategy to meet today’s demands.
Mountain Man’s current marketing strategy:
Product: bitter flavoured beer that is known for its slightly higher than average alcohol content. It is packaged in a brown bottle to accentuate its dark colour, and has its original logo design on the front (a crew of coal miners).
Price: It is priced similar to its competition. It is $2.25 for a 12‐ounce serving draft beer in a bar and $4, 99 for a six‐pack in a convenience store.
Place: Mountain Man Lager is sold primarily in Illinois, Indiana, Michigan, Ohio and West Virginia. MMBC sells most of its beers in off‐premise locations such as liquor stores and supermarkets.