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Case Study for Mountain Man Brewing Company
Founded In 1925 West Virginia’s Beer Premium Market leader for
almost 50 years Legacy Brew family owned
Business
Mountain Man Brewing Company
Name Designation
Guntar Prangel Founder (1925)
Oscar Prangel Current President and Owner
Chris Prangel Marketing Head
Notable People Working for the Company
Recent MBA Graduate Stood to inherit the family business
in 5 years Managing marketing operations of
the company currently
Chris Prangel
Guntar Prangel in 1925, reformulated an old brewing recipe and launched it as Mountain Man Beer.
By 1960’s, Mountain Man Lager’s reputation as a quality beer was well entrenched throughout the East Central region of the United States.
By 2005, Mountain Man was generating revenues above $50 million and selling over 520,000 barrels
Held top market position among Lagers for almost 50 years.
The Growth of Business
High Brand equity in premium segment Sold at off premise location Company facing declining sales for the first time in its history 2% decline in revenue Growth in light beer segment due to youth preferences
The Current Situation
The Competitive Market Share
Consumption by type of Beer
Beer Drinker Profiles
Chris wants to launch Mountain Man Light Beer for the youth to drive up revenues without damaging the brand’s core equity of Mountain Man Lager
What to do?
Pro’s- Original Brand name remains intact and no need to alienate loyal customers.
Con’s- The Declining sales may continue
Option 1-Don’t launch Light
Beer
Option 2-Launch Light beer
under brand name
Pro’s- Less money required for branching out and expansion in a new market segment.
Con’s- Core brand value may get damaged.
Option 3-Launch Light beer
under different brand name
Pro’s- Core brand name intact and brand can expand to different markets.
Con’s- Huge competition and huge amount of money required for marketing new brand.
Chris’s Analysis
2% annual loss until 2010 Regional revenue growth of 4%
annually Mountain Man shall steadily grow
its market share of regional beer at the rate of 0.25% of total regional market share annually
Chris’s Estimate
Oscar’s View
Targeting new segments will alienate the existing customers
The core brand equity shall get eroded
Mountain Man shall never receive the same loyalty among customers
Oscar’s View
Conclusion
Light Beer is a growing market. The revenues are going down. Sticking with the core brand values
is also important, so Chris should launch it under a different brand name.
Conclusion
This presentation was created by Tanmay Bhatia, Maharaja Surajmal Institute of Technology, New Delhi under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Disclaimer