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 relied on grass-roots marketing, quality message by word of mouth. 3. A small percentage MMBC’s blue collar customer accounted for a large percentage of sales (53%). Challenges in 2005: Mountain Man’s competition: U.S. beer market fell into four categories. 1. Major domestic producers: Companies competed on the basic of economies of scale in production and advertising. The market was dominated by three companies (together 74%).2. Second-tier domestic producers: Medium sized competitor sold their beers nationally to distributors and retailers accounted for 12.5% of beer shipment in East Central region. 3. Importer beer companies: Controlled about 12% of the region’s market. 4. The craft beer industry is divided in to four markets: brewpubs (25%), microbreweries (12%), contract breweries (16%) and regional craft breweries (62%). Since 2001-2005, US per capita beer consumption declined by 2.3%. Of total U.S. beer sales, 18.3% took place in the East Central Region. Changes in Beer volume were driven primarily by changes in consumer segment and not by the economic downturns. The consumer segment ‘first time drinker demographic’ (age 21-27). The segment represents 13% of the adult population in 2005, but accounted for more than 27%...
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