Mountain Man Brewing Company

Team 2
Dobrescu Monica
Lazarean Adrian
Oprea Balais Razvan
Patru Giorgiana
Popovciuc Anna

Introduction

MMBC: The Company and the Brand

Founded in 1925 by Guntar Prangel in West

Verginia;
Flawoured, bitter tasting beer Mountain
Man Lager;
By 1960 the product reputation as a quality
beer was entrenched throught East and
Central Region of the United States.

By 2005, MMBC was generating

revenues just over 50$ million and
selling over 520,000 barrels of
beer.

MMBC: The Company and the Brand

Distributors in Illinois,
Michigan, Ohio and West
Verginia.
It held top position in
West Verginia for last 50
year as an old school
beer.
Price: 2.25$ per bottle,
4.99$ for a six-pack.

To accentuate the dark color,

original 1925 design was used.

Brand equity

MMBC sales force:

Push the
brand;
Getting off
premise
locaion.
Blue collar male build purchase 60%
of the beer in liquor stores and
supermarkets!

Mountain Mans
Competition

1. Major domestic producers - 74%

Handful of companies; the biggest in the
industry.

2. Second-tier domestic producers 12,5%

Medium-sized competitors;
30 regional breweries (US, Nov 2005).

3. Import beer companies - 12%

- More floavoured; bitter-tasting beer.
Disadvantages:
- Higher shopping cost;
- Weaker distribution networks.

4. The craft beer industry - 1.5 %

4.1. Brewpubs restaurants / bar establishments;
4.2. Microbreweries limited distribution
networks;
4.3. Contract breweries manufactured beer for
client firms;
4.4. Regional craft breweries 50 in total.

Industry analysis

The largest beer market in the world over $75

billion in sales;

18,3% US beer sales East Central region of US;

Glut of product closing of many independent

breweries in East Central region.

MMBCs
survival
reason: it
served a
large enough
market with
a strong
brand.

Mountain Man market research:

1. MM Lager was known as West Virginias
Beer (authenticity, quality)
2. Traditional advertising < grass-roots
marketing (used by MMBC)
3. The sole brand loyalty rate MM 53%
(Budweiser 42%, Bud Light 36%)

Company Strategy

Lets evaluate the single-brand product strategy

Know for being West Virginias beer

Relies heavily on brand loyalty and word
of mouth grassroots advertising.
Consumer target: blue-collar middle to
lower income age over 45
Non-loyal
consumers
spread
their
consumption across up to five other
beer brands

Current distinctive customers:

Males
Working class / Blue
Collar
Older Generations
Baby Boomers
The Hardworking Man

Current Marketing Strategies

How MMBC stands out:

Working class target market;
Old family brew / Old school character
Known as West Virginias Beer;
Award winning lager in WV and In
Distributors in Illinois, Indiana, Michigan, Ohio
& West Virginia

Factors that have enabled MMBC to create a strong

brand

Why to introduce a light beer?

Newer, fast growing product category;

The only beer category demonstrating consistent
growth
Would help MMBC gain share in on-premise
locations: bars and restaurants.
There is a need to increase distribution among
bars which is only 30% ofcurrent sales

Mountain Man is a family business. Does it matter?

from its competitors

because of its history;
Younger beer drinkers held
anti-big-business values;

Independent, noncorporate and family

owned regional based
brewery.

Factors of success

Strong brand

Quality of products

Authenticity

Loyal customers (brand loyalty 53%)

Investing in branding activities

Companys history (independent, family brewery)

Times of change

Is there an opportunity for launching a new light beer?

fast-growing product category
the only beer category demonstrating consistent growth
defined target segment of consumer = 21- 27 years old, first-time drinker demographic

Are first-time drinkers relevant?

not yet established loyalty to any particular brand of

beer

anti-big-business values
13% of the adult population in 2005, but
accounted for more than 27% of total beer
consumption and was growing

Conclusions

Light beer
SWOT Analysis

Strengths

Brand and company history

Expand consumer market
Increase revenue
Diversify brand portfolio
Increase awareness of the brand

Weaknesses

Negative consequences on the actual products

Increase cost of production
Advertising costs
Loss of core customers

Opportunities

Shift in drinkers preferences

Growth in light beer consumption

Threats

Increase in federal taxes

Decrease of beer consumption
High competition (domestic, import)

Recommendations

We advise MMBC to launch the Light Beer.

very well created product strategy

keep current customers, increase future potential ones

opportunity to consolidate the companys position on the

market

Thank you!

ANY QUESTIONS?