Mmbc Case Essay

1021 Words Apr 26th, 2013 5 Pages
Bringing the Brand to Light
CASE STUDY ON BRAND MANAGEMENT AND PRODUCT INTRODUCTION Mountain Man a well-known brewing company is planning to introduce a new product line of beers. This case analysis and decides whether Mountain Man should go with its product introduction or not considering its financial health and brand value.

Narendhiran S

1. INTRODUCTION Company: Mountain Man Brewing Company is a family owned brewery located in West Virginia, established in 1925.Mountain Man brewed only one beer Mountain Man Lager also known as “west Virginia’s Beer” and a “Working man’s beer”. The company is experiencing a decline in sales by 2% due to changes in the preferences of beer drinkers.
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Second-tier Domestic producers  Medium sized competitors who distribute nationally or regionally based on their size.  !2.5% of beer shipment in Mountain Man’s region, in 2005 Import beer Companies  Better flavoured, bitter – tasting beer serving mostly for sophisticated beer drinkers.  Distinct disadvantages of high shipping costs, weaker distribution networks and reduced margins.  !2% of beer shipment in Mountain Man’s region, in 2005

Craft beer industry  Further divided into four markets: brewpubs, microbreweries, contract breweries and regional craft breweries.  Independently owned and produce small quantities.  !.5% of beer shipment in Mountain Man’s region, in 2005

Market Conditions: US beer consumption has declined by 2.3% largely due to competition from wine and spirits based drinks, increase in federal exercise tax, initiatives encouraging moderation and personal responsibility, and increasing health concerns.  Due to competitiveness in the market, West Virginia repealed arcane laws that limited the promotion of beer in retail establishments, as a result retail stores started applying large discounts to beer prices.  Distributors gave preference to large national brewers since they offered better margins.  Light beer sales in US have been showing a significant growth of 4% while normal beer sales have been declining.  “First time drinker demographic” group consisting of young drinkers of 2127 years of

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