Distinctive Products And Brand Equity

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Distinctive Products and Brand Equity

Guntar Prangel founded Mountain Man Brewing Company (MMBC) in 1925 with roots all the way from Bavaria. They distinctively use specialized hops and uncommon strains of barley to create a beer that has been described as “strong”, robust and flavorful. With revenues of $50 million in 2005, MMBC had sold 520,000 barrels of their larger to distributors in West Virginia, Illinois, Michigan, and Ohio. The brand mostly appealed to their core drinker segments that are blue collar, middle to lower income men who are over the age 45, which is different than other competitor’s market segments. Furthermore, they have a strong presence in their town as their grass root initiatives helped them develop a local
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Decline in Sales Beer consumption had declined by 2.3% due to the increased sales of wine and sprit drinks. Now people are aware of health concerns and the impact of high taxes on alcoholic beverages by the government. More than ever, beer is starting to appeal to younger drinkers between the ages of 21-27. These types of consumer have not yet developed any loyalty a specific brand and still have a high impact on the industry. Again, big name competitors took over market share with their larger distribution infrastructure. Furthermore, the trend of light beer grew in market share and grew to 50.4% of volume sales of barrels of beer. Market research conducted in conjunction with a focus group in this case futher showed these trends. Consumers make a selective purchase with deciding which beer to enjoy. They look at price, quality, brand image, local authenticity, tradition and taste. MMBC represented a tough beer primarily for older men who liked the rugged image of the brand. Younger, more fashion forward men did not like the taste of the lager and preferred something lighter. The competitive nature of the craft brewery industry should also be analyzed. With four different categories: brewpubs, microbreweries, regional craft breweries, and contract breweries, the availability of choices are varied. These are small-scale
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