THE Case Of Mountain Man Brewing Company:

Bringing The Brand To Light

Name of the student: ARUN MATHEWS

JACOB,
P14238

Problem: Should Mountain Man Brewing Company expand the products Mountain Man Lager,
and add a Light version of the beer.
1.

What has made MMBC successful? What distinguishes it from competitors?

Strong Brand Image: The brand had its status as an independent, family owned brewery that
helped to position the beer with its core drinkersblue-collar, middle-to-lower income men over
age 45.

Brand awareness was one cornerstone of the brands success with blue-collar consumers.

The product attributes that qualified Mountain Man Lager high perceived quality, smoothness,
percentage of water content, and drinkability (Mountain Man Lagers distinctively bitter flavor
and slightly higher than-average alcohol content that uniquely contributed to the companys
brand equity).

Blue-collar males purchased 60% of the beer they drank at off-premise locations.

Mountain Man sold 70% of its beer for off-premise (liquor stores) consumption, consistent with
average industry sales through this channel.

2.

What are the factors that enabled MMBC to build such a strong brand?

MMBC relied on its history and its status as an independent, family owned brewery to create an
aura of authenticity and to position the beer with its core drinkers blue-collar, middle-to-lower
income men over age 45

Blue-collar consumers: MMBC was a recognizable brand among the working-class males in the
East Central region as Chevrolet and John Deere.

High perceived quality, smoothness and higher alcohol content than normal beer.

Strong branding activities.

THE Case Of Mountain Man Brewing Company:

Bringing The Brand To Light

Name of the student: ARUN MATHEWS

JACOB,
P14238

MMBC established its own small sales force, which didnt just help push the brand; it
proselytized, focusing on one ultimate objective: getting off-premise locations.

3.

Priced similarly to premium domestic brands

What has caused MMBCs decline in spite of its strong brand?

Presence of lots of domestic beer companies who competed on the basis of economies of scale in
production and advertising, second-tier companies and regional players also posed challenge.
E.g.: Anheuser Busch, Miller Brewing Company

Import of beers from Germany, Holland and other foreign nation. (In 2005, import companies
controlled about 12% of the regions market.)

Increase federal excise tax was creating a source of challenge to MMBC, competition caused due
to substitute products like wine and spirits-based drinks.

Other factors that may cause challenge to MMBC are health conscious consumers and younger
generation who preferred light beers over strong beer.

4. Should MMBC introduce a light beer?

According to the present situation the company should introduce light beer. Because its evident that any
company cant just survive with the traditional products and needs to change according to the changing
market. According to the case if the new brand is introduced there is a need for strong financial backup
as:
In order to be breakeven Volume = fixed cost/unit rev - unit variable cost = 1.65M/97-71.62 = 65012 barrels
If the company. Even though this is the serous issues faced while company goes for a light beer brand.
But the company can leverage more business from light beer segment, attract young TG and women.
Pros:

THE Case Of Mountain Man Brewing Company:

Bringing The Brand To Light

Name of the student: ARUN MATHEWS

JACOB,
P14238

More revenue: Sales of light beer was steadily increasing at a rate of 4% annually, in nearby
regions.

Company can get business by attracting younger generation who prefred light beer.

Can attract women consumers.

5. Should MMBC introduce Mountain Man Light?

No.

There is a high chance that Mountain Man Light might cannibalize the sales of Mountain Man
Lage.

Customers who saw MBBC as a traditional strong beer may not interested in light beer and there
are chances of losing existing customers.