Mountain Man Brewing Company (MMBC) Case study

1. What has made MMBC successful? What distinguishes it from competitors\

Brand Loyalty Older working class, blue collar Effective marketing Sales team - "Grass roots" marketing 70% consumed at home higher alcohol %

2. What has caused MMBCs decline in spite of its strong brand? Think in terms of the beer market in general, as well as the market MMBC serves.

Alternate beverages health concerns tax increases Consumer changes/shift in tastes towards light beer Limited distribution channels -shelf space very competitive industry and capital intensive

3. Should MMBC introduce a light beer? What are the pros and cons of doing from a qualitative perspective? Pros

Gaining younger demographics Diverse product portfolio May be MMBC could create a unique Light beer

Cons

Alienate existing customers Dilute the existing brand equity in terms of image - particularly the brand stands for Lager with higher alcohol % Decrease/ cannibalize shelf space. More expensive to produce

Light beer already has a strong presence.

Finally, if they go with light beer with a different brand name, then think about financing - new brand, additional advertising etc. Financial Numbers In order to be break even volume = fixed cost/unit rev - unit variable cost = 1.65M/97-71.62 = 65012 barrels Spoil alert....MMBC are Yuengling beer...