Mountain Man Brewing Company

Only available on StudyMode
  • Download(s) : 470
  • Published : November 9, 2010
Open Document
Text Preview
|NUS | |MKT4415B | |Mountain Man Brewing Company: Bringing the Brand to Light | | | |Nur Azlyn bte Mohd Khalid | |2-Nov-2011 | |Prepared for: Dr Chng Peng Sim |

|Examining the issue of product development and its cost-benefit analysis |

Table of Contents

1. INTRODUCTION3
1.1 Defining the Problem…………. 3
1.2 The Beer Industry – East Central Region4
2. COMPANY ANALYSIS- MMBC5
2.1 Current Marketing Strategies of MMBC5
2.2 SWOT Analysis6
3. MOUNTAIN MAN LIGHT ………… 7
3.1 Reasons for / against Mountain Man Light.................... …………………………….… 7 3.2 Financial Projections – Status Quo & Brand Erosion Scenarios .…………………….… 8 3.3 Evaluation of Financial Projections – Status Quo & Brand Erosion Scenarios ….…… 10 3.4 Financial Projections – Break-Even Analysis ......………………………………….… 11 3.5 Financial Projections – Net Marketing Contributions Approach …… ….. …………. 12 3.6 Evaluation – Decision For / Against the Launch of Mountain Man Light.......................... .. 12 3.7 Marketing Contribution Strategies ……………….. 14 4. CONCLUSION……………………………….……………………………………….. 18

Section 1 - Introduction
Mountain Man Brewing Company (MMBC) is an independently-owned, family-run beer company in West Virginia founded in 1925 by Guntar Prangel. It prides itself on its best-selling premium Mountain Man Lager beer, which has been synonymous with quality, authenticity and taste. Throughout the years, it has gained massive support and brand loyalty among blue-collar male workers in the East Central region, where its lager beer is sold. This loyalty has translated across different generations, because MMBC has managed to preserve its brand image and the quality of its lager beer throughout the decades.

1.1 Defining the problem

However, in spite of the high perceived brand image and loyalty, revenue for MMBC has been found to be declining by 2% annually. This comes about due to the recent increased competition – where laws about beer promotion in retail channels were repealed, enabling the various beer companies to engage in price competition and offer substantial discounts.

In addition, the decline in sales for Mountain Man Lager was attributed to changes in beer drinkers’ preferences. Beer consumption is largely driven by changes in consumer segments. In place of the stronger-tasting lager beer, there is now a focus on light beer sales, due to the growing category of Generation-Y young adults. This category of beer has been growing at a compound annual rate of 4% in the US, vis-à-vis the annual decline of premium beer sales of the same amount.

Thus, Chris Prangel, the marketing operations manager of MMBC, is deciding on whether or not to launch the Mountain Man Light. Launching such a product would be in line with the increasing market demand for light beer products – ultimately to cater to the young adults’ preference for light beer.

However, the decision to launch this light beer product brings...
tracking img