Mountain Man Brewing Company

2206 Words Nov 5th, 2008 9 Pages
Running Head: MOUNTAIN MAN

Mountain Man Brewing Company Case

The purpose of this case study is to explore the implications for expanding the products offered by Mountain Man Brewing Company (MMBC) from one product, Mountain Man Lager, to adding a Light version of the beer. This paper will evaluate the following:
1. The positioning statement of MMBC; including what has made MMBC successful and how MMBC distinguishes itself from competitors. I will argue that quality and authentic West Virginia family recipe created a brand that differentiates the lager from competitors.
2. How these factors enabled MMBC to create such a strong brand; and why, despite its strong brand, MMBC was experiencing a decline in 2005. I
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1-7). These factors along with the fact that they served a large enough market, helped MMBC compete with major domestic premium brands such as Miller and Budweiser, as well as second-tier domestic producers when other breweries were going out of business in Virginia (Abelli, 2007, pp. 2-4).
The Decline of Mountain Man Lager
Despite the strong brand and strategic position that MMBC created, the company experienced a decline in revenue of 2% in 2005 (Abelli, 2007, p. 4). The decline is due to changes in beer drinking patterns, markets, and demographics in the region as well as the U.S. in general. The change in beer drinking in 2005 included a decrease in intake of beer in general. This was due to competition from wine and spirits as well as new national health recommendations to decrease alcohol consumption for improved health (Abelli, 2007, p. 4). Premium beer consumption was down 4%, but light beer use was up 4% (Abelli, 2007, p. 10). This movement of consumer purchasing practice, makes adding a light beer product attractive. Overall beer consumption was down in the U.S., and this trend was true in MMBC’s region as well. See Figure 1. This graph shows beer consumption in West Virginia, MMBC’s home state, Figure 1: Based on data from Abelli, 2007, p. 9. compared to consumption in the East Central Region. Both follow the same curve as total U.S. consumption. This curve is similar to maturity stage of the product life cycle curve
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