Mountain Man

Topics: Brand, Brand management, Branding Pages: 7 (2754 words) Published: November 14, 2014
With recent declining sales for Mountain Man Beer Company (MMBC), Chris Prangel is considering launching Mountain Man Light as a brand extension aligned with changes in beer drinkers’ preferences. He is seeking to maximize market coverage while minimizing brand overlap, and at the same time avoiding any brand equity damage, as MMBC’s core consumer segment is significantly different from the new targeted segment. Chris expects to negate declining sales of Mountain Man Lager and capture market share in the fast-growing light beer category, which accounted for 50.4% of all beer sales by volume in 2005 in the East Central Region (Exhibit 1). More specifically, Chris wants to capitalize on Mountain Man’s brand recognition in the region and capture a meaningful share of the local light beer market, a market in which MMBC currently has no presence. In addition, he is hoping a successful launch of Mountain Man Light in the local on-premise locations will boost the lagging sales of Mountain Man Lager. In order for the launch of Mountain Man Light to be successful, several factors would have to align to obtain the goal of MMBC obtaining significant initial market share and subsequent years’ growth in the light-beer market. First, the new campaign targeting the light beer consumers, which consists largely of younger drinkers, would not erode the company’s brand equity by alienating its core customer base, consisting of the “swing” and baby boomer generations. (Abelli, 2007) Second, MMBC would have to minimize the light beer’s cannibalization of its lager. MMBC’s sales staff would have to convince off-premise retailers to grant MMBC “incremental shelf space” instead of substituting cases of light product for the lager product. MMBC would also have to be certain that the light’s sales would compensate for any potential cannibalization of lager’s sales. Third, Chris would need to convince the senior management team that light’s sales would generate a profit in two years after accounting for the marketing expense to launch it, the incremental SG&A expenses, and the potential lost lager sales. What has made MMBC successful? What distinguishes it from competitors? What is distinctive about MMBC’s product? What is distinctive about MMBC’s customers? How is MMBC’s promotion different and effective? In 1925, Guntar Prangel reformulated an old family recipe creating Mountain Man Lager. Being an independent, family-owned brewery fashioned an authentic product earning an unaided response rate of 67% from West Virginia’s adult population. Other notable accomplishments include eight straight titles as “Best Beer in West Virginia” and “America’s Championship Lager” at the American Beer Championship. MMBC stands out in the market because of its deep history, status as an independent, non-corporate and family owned regional based brewery, confirming an originality desired by its core consumers. Brand awareness, perception of quality, and brand loyalty has contributed to MMBC’s success. Exhibit 2 illustrates MNBC’s key demographic as blue-collar, middle-to-lower income men over the age 45. This contrasts greatly to the average profile of non-gender specific younger drinkers with higher household incomes. Quality and product distinction derive from an ingredient list including a meticulous selection of rare, Bavarian hops and unusual strains of barley, resulting in a flavorful, bitter-tasting beer. Another distinction was that of the slightly higher alcohol content. MMBC’s promotion primarily focused on grass-roots marketing and getting its product into off-premise locations. This was an effective plan because statistics indicate that the core customers, blue-collar males, purchased 60% of their beer from off-premise locations (Abelli, 2007). In contrast to larger competing companies, MMBC did not rely on advertising and sales promotions. Instead MMBC relied on the strong loyalty of their customer base to promote their product. The effectiveness of this...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • The Shining Mountain Essay
  • mountain vs beach Essay
  • the evolution of mountain climbing gear Essay
  • Mountain Beyond Mountains Essay
  • The Beach vs the Mountains Research Paper
  • A Universal Message in Mountains Beyond Mountains Essay
  • What makes a man a man? Research Paper
  • Essay about What Makes a Man a Man?

Become a StudyMode Member

Sign Up - It's Free
Running Man Episode 25 | #militaria | Surd_Killa