Mountain

Man
Brewing
Company
Dr Naresh Patel
 Knot in stomach of
• 2% Loss in Sales
Chris
– A 2% lost of sales volume results in 32%
loss of operating profit.

($ millions) 2005 2006 2007 2008 2009 2010

Revenue $50.44 $45.99
Contribution 15.63 14.13
Fixed expenses 10.99 10.99
Operating Margin $ 4.64 $3.14

1-2
 Decision Tree
1. Introduce Mountain Man Light
• Target Market
• Position
• Tactical Support Plan (Advt/Promotion)
• Budget
• Cannibalization
1. Do not introduce
 What has made MMBC
Successful
1. MMBC’S Product
•Taste
•Packaging
•Position
•Award-wining
•Consistent quality
1. MMBC’s Customers 3. MMBC’S promotion
•Target Market • Grass-roots
•Older marketing
•Working Blue collar • cache
•High Loyalty
•Regional focus
Factors of MMBC Brand
1. What is Brand
Value of brand is created through
consumers being familiar with brands and
holing favorable, strong and unique brand
associations in memory.
2. Mountain Man Lager Brand
• Social Group
• Working-class
• Tough
• Down-to-earth
• Regional beer
• Not ‘Corporate” but local, authentic
 MMBC’S decline in spite of
strong brand
• Overall beer market Size.
• Regular beer decline 4%, light beer
growing 4%
• MMBC decline only 2%
• Overall shift of market to light beer.
Should MMBC introduce a light
beer brand
 Prons:
• Known brand name reduce the risk of
customer.
• Easy to convince retailers to stock and
promote.
• The introductory marketing campaign
need not to create awareness.
• Possible packaging and labeling
efficiencies.
• Light could re-invigorate lager.
• No option – need to find way to tap new
demographic.
 Cons:
• Would dilute lager equity.
• Core customer start questions to
integrity of brand.
• Potential for cannibalizations of lager
brand
• Exceeds the boundary of brand –
meaning of lager is full-flavored,
authentic, working class, the “real
thing”, while light is trendy, light,
young, modern.
• The fact of lager beer is dark, bitter,
and has a higher alcohol content with a
product label shows a crew of coal
miners is not a fit with the light beer
demographic.
Thank You