MMBC Case Analysis
Mountain Man Brewing Company Case Analysis
Mountain Man Brewing Company (MMBC) is a beer brewer and has so far sold just one brand under its brand called the Mountain Man Lager. The management is deciding to extend its product brand and introduce a Light Beer called Mountain Man Light. In the do-nothing scenario, MMBC projections are: Sale Projections 2005 MMBC Lager Profit Margin 6.2% 5.9% 5.6% 5.3% 5.0% 4.7% 2006 2007 2008 2009 2010
$50,440,000 $49,431,200 $48,442,576 $47,473,724 $46,524,250 $45,593,765
Chris is considering launching a Light Beer product to extend the MMBC product portfolio. However, in order to be successful, a lot of factors need to align ...view middle of the document...
Chief points to note include:
High brand loyalty from its customer base Older working class, blue collar customers Cheap word-of-mouth marketing Effective sales force that does grass root marketing Most of the beer is consumed at home The Lager has a higher alcohol percentage Positioned as a traditional, legacy premium beer
We can safely assume that among the chief differentiators of the MMBC brand, the key reasons behind its success were the fact that the brand was positioned as a ‘tough’ one with high quality.
Its grass-root marketing was extremely effective and MMBC’s blue-collar customers appreciated the taste of the lager beer. Thus, high brand awareness, perception of quality, distinct flavor and a strong sales-force to get MMBC in getting off-premise locations to embrace Mountain Man were key reasons behind the success of the brand.
In spite of having a strong brand, MMBS is observing a decline in sales. While the main reason behind this is the shifting consumer trend toward light beer (product category maturity), the lager brand itself seems to be maturing. We know that the way to increase sales for a particular product is to increase the users, uses or usage. In MMBC’s case, the users seem to have stagnated. Since MMBC does not cater much to on-premise locations, it seems to have maxed out its target market. Other reasons behind the decline in sales for the Lager brand can include limited distribution channels and shelf space and increase in...