The case study of Mountain

Man Beer Company

Presented to : Dr. Naresh Patel
Professor , Marketing Management.
Presented by
Saumil Trivedi
Aman Hegde
Rahul Parekh
Rutvij Rajput
Case at glance
Scope of study
Introduction of company
Product profile
Scope of study
Study of new product launch of same brand
Scenario of beer company in competitive market
Reasons of declining sales of company
Target market of product in particular area
Brief idea about beer
Ingredients : malted barley, hops, cassava than adding
water in
Introduction of company
Mountain man beer company was founded in 1925 by
Guntar Prangel and is known as West Virgina’s Beer
Chris Prangel joined company in 2006 after retirement
of Oscar prangel
Company facing declining sales very first time upto
now
Chris wanted to launch light beer with same brand
MMBC held top market for 50 years in most states
where beer was sold
Product profile
Beer’s dark colour, packaged in a brown bottle, with
it’s original 1925 design of a crew of coal miners
printed on front
MMBC’s beer was bitter flavor & slightly higher than
avg. alcohol
Price was similar to premium domestic brand such as
Miller and Budweiser
Price was $2.25 for a ounce in bar and $ 4.99 for a six
pack in convenience store
Drinkers were blue collar and middle to lower income
Competitors
Major domestic producers : Anheuser busch, Miller
Brewing company, Adolf coors company having 74%
shipment in MMBC’s region
Second tier domestic producer Pabst Brewing Company
and Genessee and having 12.5% shipment
Import beer companies served who desired more
flavorful, bitter tasting . And control 12 % of region
market
The craft beer industry divided into 4 markets :
brewpubs, microbreweries, contract breweries and
regional breweries
Achievements
In 2005 won best beer in west virgina for 8th time
consecutively
Selected as “America’s championship lager”
Problems
U.S per capita consumption had decline by 2.3% due to
competition, increase in federal excise tax, encouragement
of moderation and personal responsibility and health
concerns

In 2005 mountain man’s revenue down 2% prior fiscal year

Legal issue in west Virginia repealed arcane law because

of competition which give limitation the promotion of
beer
Cont…
As result retail store selling at very big discount

Distributors become more discriminating about

carrying which brand give them turnover

Limited finance abstain them to expand geographically

They are loosing their target market by other beverages

Target market
Age : 21 to 27
As per income : up to $74.9k
Middle to lower class
Not loyal to any beer brand and will purchase on taste and
price
Competitive advantage
In limited geographic region the company can expand
with very less risk and less finance

The company can target new market segment because

of brand reputation and very long experience

Light beer was newer, fast growing product category

and only making consistent growth
Cont..
Customer are loyal in using the mountain man beer
and having a great market
4 A’s in marketing
 Affordability
Companies should design product in such a way that it
reaches the customer at affordable price
 Availability
Companies should go at all area of market in particular
region
 Awareness
The company has very good brand awareness so it will
be easy to enter in new segment
Cont..
 Acceptability
The customer are using premium brand and it is target of
new product in same brand
Distribution strategy
Instead of taking sales force to any agency company
can direct sell it to retailers
MMBC can give some amount of more commission to
retailer for selling product
MMBC can update its bottle after some time to
continue its brand name
It can open its own small shops where all type of beer
can be available
Advertising
It is very expensive for MMBC to give advertisement in
all the area that is mass communication
But giving ads in local news paper as well as some
magazine
MMBC can take some sponsorship to any sports team
which is famous in that region