Mountain Man Brewing Company
Case Summary: Mountain Man Brewing Company.
Bringing the Brand to Light: Brand extension.
The Mountain Man Beer Company (MMBC) was founded in 1925 and the family launched as Mountain Man Lager. By the 1960s, Mountain Man Lager’s reputation as a quality beer was well entrenched throughout the East Central region of the United States.
MMLC’s single brand product strategy and brand extension market research evaluation:
1. The Mountain Man Lager brand rated as the best known regional beer and won ‘Best Beer in West Virginia’ for its eight year straight., it also won ‘Best Beer in Indiana’ and was selected as America’s Championship Lager’. Younger beer drinkers were well aware about of the brand.
2. Mountain Man had always …show more content…
Light beer was a newer, fast growing and the only beer category demonstrating consistent growth in on premise locations: restaurants and bars. Light beers appealed to younger drinkers overall, and women, both groups that frequented these locations. Chirrs Prangel MMBC management believed Mountain Man’s recognition could translate into a meaningful share of the light beer market and hoped that in turn, Mountain Man Light’s popularity could boost the sales of Mountain Man Lager.
2. Other management team was concerned that launching Mountain Man Light would alienate the core worried that MM Light might cannibalize the sales of MM Lager because of a retailers would not grant Mountain Man incremental shelf space and would substitute cases of light product for the larger product.
3. Launching a MM Light new product an expensive endeavor for a small company. TV advertising it self could cost between 10M to 20M to lunch product in regional level, for brand awareness in East Central area would cost at least $750,000 for six months. This would be on top of the $900,000 in annual, incremental SG&A costs. The MMBC’s variable cost was $66.93 per barrel and it would cost $4.69 more to manufacture Mountain Man Light, profit margin per barrel will be lower.
4. Vice President: MM light will never achieve the volume of larger beer brands. Our won’t give additional facing for MM Light would just replace facing we have earned for Mountain Man
Bringing the Brand to Light: Brand extension.
The Mountain Man Beer Company (MMBC) was founded in 1925 and the family launched as Mountain Man Lager. By the 1960s, Mountain Man Lager’s reputation as a quality beer was well entrenched throughout the East Central region of the United States.
MMLC’s single brand product strategy and brand extension market research evaluation:
1. The Mountain Man Lager brand rated as the best known regional beer and won ‘Best Beer in West Virginia’ for its eight year straight., it also won ‘Best Beer in Indiana’ and was selected as America’s Championship Lager’. Younger beer drinkers were well aware about of the brand.
2. Mountain Man had always …show more content…
Light beer was a newer, fast growing and the only beer category demonstrating consistent growth in on premise locations: restaurants and bars. Light beers appealed to younger drinkers overall, and women, both groups that frequented these locations. Chirrs Prangel MMBC management believed Mountain Man’s recognition could translate into a meaningful share of the light beer market and hoped that in turn, Mountain Man Light’s popularity could boost the sales of Mountain Man Lager.
2. Other management team was concerned that launching Mountain Man Light would alienate the core worried that MM Light might cannibalize the sales of MM Lager because of a retailers would not grant Mountain Man incremental shelf space and would substitute cases of light product for the larger product.
3. Launching a MM Light new product an expensive endeavor for a small company. TV advertising it self could cost between 10M to 20M to lunch product in regional level, for brand awareness in East Central area would cost at least $750,000 for six months. This would be on top of the $900,000 in annual, incremental SG&A costs. The MMBC’s variable cost was $66.93 per barrel and it would cost $4.69 more to manufacture Mountain Man Light, profit margin per barrel will be lower.
4. Vice President: MM light will never achieve the volume of larger beer brands. Our won’t give additional facing for MM Light would just replace facing we have earned for Mountain Man