Mountain Man Brewing Company: Bringing the Brand to Light Case Study Analysis

Introduction

Mountain Man Brewing Company was found in 1925 by Guntarprangel as a family business, which was continued by his son and then his grandson. The company has been offering only one product, known as Mountain Man Lager. The product was produced under the taste of the family trend in the refined manner. Since that first batch; the product has significantly featured a meticulous selection of rare, unusual strain of barley and Bavarian hops, hence building the image as West Virginia’s beer. The company stood for providing the people what they deserved and wanted in quality beer. The company held the top market position in competitive landscape and had a respectable market share as it relied on its status and its history as a family-owned, independent brewery to position the product with its core drinkers and to create the aura of authenticity.

Problem statement

Mountain Man brews just Mountain Man Lager, highly recommended and popular among blue collar workers. The company competitively prices its products to match major domestic brands. On account of the changes in the taste preferences of the drinkers, the company is now concerned about reducing sales for the first time in its history. Despite of the relentless efforts of maintaining the respectable share in the market, the company is seeking to capitalize on the consistently and fastest growing light beer market by introducing Mountain Light, in the hope of attracting the younger generation to the brand. The question, here is whether the new product would enhance it, irreversibly manage it or detract from it.

Analysis

Internal analysis

The company has earned the strong reputation throughout the East Central Region of the country and has been recognized as a top seller of premium beer for over 50 years in the state of West Virginia. On account of its family owned business; the company gained popularity and acceptance among blue collar males over the age of 45. By the end of the year 2005; the company has beenselling over 520000 barrels of Mountain Man Lager to distributors and generating revenues over $50 million.The population of West Virginia rated Lager as the best-known regional beer with the 67% response rate from adult population of state. The success of the company depends on the perception of quality in products offered by MMBC and the brand loyalty its products cultivated.

On the other hand, the weaknesses of the company includes anincreasingdependency over a single product, limiting its exposure to generate higher amount of revenues by introducing new products. Over the period of six years, the traditional premium beer sales have reduced at CAGR 4%. The sales of the company are highly vulnerable to changing consumer preference, high quality features and robust market competition. Since its early years of establishment, the company has been catering on market population of blue collar males over the age of 45, hence alienating the younger drinkers & stymied growth of market. On account of the reason that profit have declined due to reducing sales of Lager, the cost to launch the new product could prove to be financially devastating for MMBC……………………………….

 

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