Mountain Man Brewing Company: Bringing the brand to light
Introduction: Mountain Man Beer’s Success:
The United States is the largest beer consumer in the world with the East Central region having sales of 18.3%. Mountain Man Brewing Company is a family owned brewery located in West Virginia that has been strong presence as lager brand in this region since its establishment in 1925. Ever since, it has marketed towards the blue collar, middle to lower income population in the region with its bitter, and higher alcohol content lager. Over the years its brand identity has been associated as an old school, regional brewing company and its consistency in taste and blend. There have been multiple instances where 3 generations of families have grown up consuming Mountain Man Beer and felt that Mountain Man Brewing Company has retained the quality ever since its introduction. It has therefore, created a legacy as “West Virginia’s Beer” and a “Working man’s beer” and has not deviated from its core branding, maintaining itself as a single product company.
Nevertheless, there are some mains problems to underline and analyse.
How to stop the annual decline ?
How to introduce a light beer without affecting the brand image and the sentiments of the current consumer? How to compensate for the possible loss in shelf space with retailers? How to revamp sales of its core brand, Mountain Man Lager?
The Mountain Man’s revenue decline about 2% annually due to changes in customer habits. Furthermore, 70% of sales through off-premise location witnessing increase the pressure from larger producer. Revenue in the Light beer segment increases 4% annually while traditional premium beer sales had declined annually same percentage. Light beer category accounted for 50,4% of volume sales in compared with 29,8% in 2011. Young market account fort 27% of total category spending.
Younger demographic is in a loyalty development phase but existing mountain main customers that don’t want a whinge while young generation wouldn’t mind a lighter version of the beer.
For the first time in its history, Mountain Man Beer Company knows a recent declining sales and loss in revenue the previous year and prospect of continuous decline.
Chris is considering launching Mountain Man Light Beer as a brand extension aligned with changes in beer drinkers’ preferences, in order to maximize market coverage while improving brand and at same time avoiding any brand equity damage. Its consumer segment is different from the new-targeted consumer segment.
* The beer market leadership in the U.S. East Central Region. * Keep brands identity
* Introduce a new product without kill the core product * Be careful of the competitor’s brands.
1. Christ should present a new marketing plan => in order to improve a new product 2. Using the brain value
3. Extension product « light Beer » will help the core product « lager beer » to increase. 4. That will cover the all-marketing steps within two years after the launch.
* Since 1925, Traditional and Regional family => has cultivated its brand loyalty by sticking to its core customer base, * That offering to them an attractive product
* Offering them a brand building product
* In order to great price, tradition, local authenticity, quality, and a unique taste.
* MMBC is different from its competitors
* Causes of its history, its status as an independent, non-corporate and family owned regional => blue-collar consumer * Based in the originality desired by its core consumers.
- Customers base of 55-56 spending less
- 70% of sales through off premise location
- Revenue beer increasing 4% annually
- Younger market account 27% of total category...