To:| Chris Prangel|
CC:| David Nasser|
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 is higher than any of its competitors. The “light beer” appeals to the younger generation, especially the females, and Mountain Man Lager has always appealed to the older, rugged, blue-collar male. The appearance of Mr. Prangel’s dilemma is very evident.Based on the evidence, Mountain Man should not introduce the light beer. The light beer industry is growing, that can’t be denied, however for Mountain Man, it is not in their best interest yet. Although the quantitative reasoning is...