Mountain Man Brewing Company

Topics: Marketing, Brand, Brand management Pages: 21 (5966 words) Published: November 10, 2008
Mountain Man Brewing Company

TABLE OF CONTENTS
COMPANY ANALYSIS .................................................................................. 3 OUR DECISION ............................................................................................. 7 FORECASTS AND ESTIMATES ................................................................. 8 BREAKEVEN ANALYSIS ........................................................................... 12 MARKET SUMMARY .................................................................................. 13 EXTERNAL MARKET ENVIRONMENT .................................................. 14 CUSTOMER ANALYSIS ............................................................................. 15 COMPETITOR ANALYSIS ......................................................................... 16 MARKETING INFORMATION REQUIREMENTS ................................. 18 PRODUCT ..................................................................................................... 19 PLACE ........................................................................................................... 21 PROMOTION ............................................................................................... 22 PRICE............................................................................................................ 24 SPECIAL IMPLEMENTATION PROBLEMS TO OVERCOME ............. 25 CONTROL ..................................................................................................... 26 WORKS CITED ............................................................................................ 29 3

COMPANY ANALYSIS
OBJECTIVES Ensure Mountain Man‘s financial stability and market share while maintaining Mountain Man‘s positive brand image CURRENT SITUATION Mountain Man is currently only in the heavy beer or lager market Mountain Man‘s reputation o Viewed as a quality beer which is well entrenched and sold throughout the East Central region of the United States which includes West Virginia, Kentucky, Indiana, Ohio, Wisconsin, Illinois, and Michigan o Family owned, independent brewery with a deep history

o Has held the top market position among lagers in West Virginia for almost 50 years o Has a respectable market share for an ―old school regional brewery in most of the states where the beer was distributed‖ In 2005 Mountain Man was generating revenues just over 50 million dollars, selling just over 520,000 barrels Strong market share in the blue collar middle to lower income men over age 45 PROBLEMS

1) 2% decline in sales from 2004 to 2005—this is the first sales decline in company history o Premium beer sales are declining at 4% annually
2) Shrinking target market
o Change in consumer preference
 Light beer sales in the United States have been growing at a compound annual rate of 4%  Younger consumers prefer light beer
o Decline in blue collar job market rendering MMBC less able to replace core market customers1 OPPORTUNITIES Light beer market is growing at a compound annual rate of 4% Younger drinkers, 21-27 years of age account for 27% of total beer consumption and have not yet established loyalty to any particular brand of beer POSSIBLE SOLUTIONS

1) Introduce a light beer with the Mountain Man brand name
o Advantages
 Potential increase in revenues
 The light beer market has been growing at an compound annual growth rate of 4% over the past six years  MMBC could grab a quarter of a percent of this market its first year and an additional quarter of a percent each year thereafter 1 www.usatoday.com/money/economy/2002-12-12-manufacture_x.htm 4

 Younger consumers prefer light beer to other categories, and MMBC could take advantage of this market segment, a segment which is responsible for 27% of beer consumption  Family branding may allow MMBC to incur less advertising costs than independently branding, because MMBC could simply expand their advertising campaign, rather than having to...

Cited: Personal Interview: William Craig Leinert Assistant Manager Wal-Mart Franklin, IN 46131 (317) 736-5377 leinert1248@yahoo.com 3/19/2008 10:00 pm Wal-Mart, Franklin William D. Perreault and E. Jerome McCarthy. Basic Marketing. www.usatoday.com/money/economy/2002-12-12-manufacture_x.htm http://www.nbwa.org/Nbwa/Industry/American_Beer_Distribution.htm http://www.tastings.com/beer/perishable.html http://www.deloitte.com/dtt/cda/doc/content/White%20Paper_Beer%281%29%282%29.pdf http://www.professorshouse.com/food-beverage/wine-and-spirits/shelf-of-beer.aspx http://www.michelson.com/focus/services.html http://www.studentfitness.org/the-marketing-of-alcohol-to-college-students/ http://www.federalreserve.gov/FOMC/beigebook/2006/20060118/default.htm
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3/20/2008 Dear Mr. Leinert, Thank you for your information regarding the shelving of alcoholic products in retail stores. We greatly appreciate the time you took to talk with us. The information you provided us with, was very helpful in justifying our argument for our senior seminar case study. Again, thank you for lending us your expertise and time. Sincerely, Jeremy Gale Grace Surface Pat Yokovich Franklin College
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