Mountain Man Beer Company - Case Analysis Essay

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Case Analysis

Mountain Man Brewing Company:

Bringing the Brand to Light

Mountain Man Brewing Company (MMBC) was founded by Guntar Prangel in 1925. He reformulated an old family brew with quality ingredients, resulting in a flavorful bitter tasting beer which was launched as the Mountain Man Lager. The brand grew to claim a respectable market share for an independent-family-owned-brewery, in whole of the East Central United States by 1960. Even today, after 80 years, the lager is a legacy brew, awarded as the Best Beer in West Virginia for many years in a row.

MMBC is still a single product company and generates over $50 million in revenue and selling
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MMBC needs to consider the cost associated with launching the new line. They would sell the MMLight at the same price as the regular beer; however it costs considerably more to produce. Advertising would also add to the burden of MMLight. Advertising alone would cost over $750K for a six month campaign to reach brand awareness of 60%. As they still would only be able to sell the new product at the same price that their competitors are selling theirs, the cost might outweigh the rewards.

Opportunities:

Looking externally one can see that MMBC has many possible avenues they could take advantage of, in the changing U.S. demographic and beverage market.

MMBC is known for their traditional high quality lager with the potential to expand into several fast growing markets such as light beer and super-premium beer. By entering a growing market MMBC could gain drinkers from different demographics which they currently lack, for instance women and those in their twenties new to drinking. By implementing these changes it could offset the market share loss MMBC lager is currently facing.

MMBC could restructure how they market their beer, looking at new avenues. The internet is one possibility, capitalizing on the younger generation and their anti-big-business-sentiment as a marketing tool. MMBC could try to increase sales in ‘on-premise’ locations. MMBC should also look to expand their distribution range to acquire more states in the U.S. focusing on their
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