Mountain Man Brewing Company Case Analysis

Mountain Man Brewing Company- Bringing the Brand to light

Marketing Management II Case Analysis

Section A

Chetan Hariprasad Kabra

2009016

2

T

urn around Management is not a very simple thing to do. It needs different Intellect,

powerful Strategies, Great insights, and above these Successful Implementation of all the decisions & strategy. American Beer Industry itself is a symbol of oligopoly where few brand with their different variants trying to capture new market as well as on the same time retaining the older ones.

Mountain Man Brewing Company (MMBC) also known as “West Virginia’s Beer, a symbolof

toughness, Authenticity, quality and uniqueness. First time ever in the history, Company is facing drop in sell which makes the management sweat a bit. The reason is the changing taste and preferences of the American customers.

This Industry is going for Lager to light demand shift as strong beer consumers are vanishing with time whereas young generation segment is increasing and their choice is Light. The case is very interesting where company is finding itself in a junction from where they have to take a decision which is very critical for the survival in this rapid changing hypercompetitive marketing.

Companies like Mountain Man Lager which has a strong association with blue collar, Middle to Lower Income men over age 35. These are the core drinker for MMBC which are very much loyal over the long period. They are loyal for such a strong drink due to many reasons like taste, toughness and availability. Now company is worried about Brand Equity if they will go for a growing beer sector which is Light.

These dilemma points are to be covered under these brief headings:

Market changes:



Changes in beer drinkers preferences



Declining sales of Mountain Man due to reduction in population above 35 by 4% every

year in-spite of being a good brand



Economies of scale of large national brewers



Key consumer segment was younger drinkers (13%) who preferred light beer and

accounted for 27% consumption.

Chris considerations:

 Ways to cater to declining sales revenue of Mountain Man.

 Introducing a new product line to cater to younger generation.

Launching of Mountain Man light.

 Under utilization of plant capacity

Costs for launching new product, its sustainability w.r.t. competitors.

 Positioning of Mountain man light to avoid cannibalization with existing product.

Creating brand awareness of Mountai...