Download - Case study for mountain man brewing company
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Case Study for Mountain Man Brewing Company
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Founded In 1925 West Virginia’s Beer Premium Market leader for
almost 50 years Legacy Brew family owned
Business
Mountain Man Brewing Company
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Name Designation
Guntar Prangel Founder (1925)
Oscar Prangel Current President and Owner
Chris Prangel Marketing Head
Notable People Working for the Company
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Recent MBA Graduate Stood to inherit the family business
in 5 years Managing marketing operations of
the company currently
Chris Prangel
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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
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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
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The Competitive Market Share
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Consumption by type of Beer
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Beer Drinker Profiles
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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
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What to do?
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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
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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.
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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.
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Chris’s Analysis
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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
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Oscar’s View
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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
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Conclusion
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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
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This presentation was created by Tanmay Bhatia, Maharaja Surajmal Institute of Technology, New Delhi under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Disclaimer