Man Brewing Company Essay
Mountain Man Brewing Company is a beer company established in 1925 that focuses on providing quality bitter-tasting beers having a slightly higher content of alcohol. The company targets the market of Central East Region of the United States. The company has grown with a fast pace in past but now facing a decline due to changing preferences. Competitive Advantage: Mountain Man is a quality beer having long history that dates back to 1925. There are various distinctive features regarding the product. It is a flavorful beer having a bitter taste.
The company focused on only one product i. e. Mountain Man Lager and the core brand values have developed in the minds of people keeping the product’s nature in mind. Quality, authenticity and toughness are the main core attributes one can relate to the product as identified in a study. The brand is well developed and recognized all over its market. Brand awareness can be named as one of the success factors of the company. It is observed that even people not consuming this brand know about the product well. The product’s popularity can be seen by the fact that it has topped the market of West Virginia for about
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A recent study at West Virginia showed that people rate the Mountain Man Lager as the best beer of West Virginia. The beer was also selected as America’s Championship Lager that proves the company’s strong brand image. The most prominent difference between the company and competitors is that company only focused on one type of drink while other brewers have extended the product categories. The product has slightly higher content of alcohol than its competitors that are offering lighter beers. The main customers of the product are blue-collar working males mostly above the age bracket of 45.
As the product’s nature resembles to that what these aged customers require, the product proves outstanding to them. When we consider the geographical location of the products market, it is the East Central Region. The most prominent market catered by the company is of West Virginia and the product is often called West Virginia’s beer. The customers which product caters are the ones who do not like light drink. Most of the consumers are from the generation of baby boomers and it is least likely that they would change the preference, as the position of the brand is very strong in their minds.
Unlike other segments, these customers are less prone to trend changes. The company has used different channels in order to promote its brand and product. Besides having different distributors, the company also has established a sales force to gain more and more shelf space. This has enabled the company to sell more and more at off-premise locations and 70% of the sales are achieved through this channel. A recent study showed that grass roots marketing seemed much more effective than traditional advertising.
What we generally saw is that Mountain Man always focused on grass roots marketing as a promotion tool. Promotion has been extremely effective and it can be seen by the fact that the brand equity, brand image, brand loyalty and brand awareness of the company is excellent. Excellent promotion has contributed a lot in making Mountain Man a perfect and well-known brand. The fact that company’s focus on one type of product also accounts for its accomplishment. Brand loyalty is also one of the factors contributing in the success. Market Situation:
The most common and influential reason that accounts for the decline of the product is change in the trend. Over the past few years, it is noticed that people’s preferences related to drinks have changed largely. Now, the consumers like drinking light beers more than traditional lagers. Companies having flexible policies have started coping with this changing trend and extended their product lines to light drinks. As Mountain Man has strong position as a slightly higher alcoholic and bitter tasting drink, the company did not develop any lighter drink.
In this way, it has failed to cope up with the changing trend. Another main factor contributing to failure is that main customers of the company are the baby boomers, which are getting less and less in numbers with the passage of time. This is yet another factor contributing to the decline. The market that MMBC caters is of East Central region. All the beer drinkers living in this area can be called the prospects. However, the company’s most prominent customers are blue-collar working males falling in the age bracket of 45 and above.
In East Central region, the beer market consists of Indiana, Kentucky, Michigan, Ohio, West Virginia, Illinois and Wisconsin. Male members of the society lead the market. 25-64 years of age people account for most of the beer market in general. The company faces high competition while catering the market. One can list four main types of competitors competing with MMBC. Major domestic producers, second-tier domestic producers, import beer companies and the craft beer industry are the major types of competitors the company competes.
Major domestic Producers account for around 74% of the market share of the beer industry that makes it the leader. Two most common threats are the decrease in baby-boomers and the increasing trend of light drinks. The future of competitive brewers can be very threatening or can be very successful depending on the situation. As we saw various companies facing downfall in last years, we can predict that if the brewers do not take the effective measures they may face huge losses. On the other hand, if they achieve success in coping with the trends and competition they may experience huge accomplishments.
The current market situation of the company is not satisfactory. The company has experienced a 2% decline in its revenues. As more than 50% of the market has shifted to light drinks, the company has to do something to cope with the trend. Although the company is strongly catering to blue collar males of ages above 45, the company needs to extend more otherwise they may experience more decline in future. Qualitative Evaluation: According to the statistics and future trend projections, I totally agree with the idea of introducing a light beer.
More than 50% of the market is now showing preference for light beers and that is the sign of the significance of introducing light beers. Bright opportunities are the one of the advantages of introducing light beers. By introducing light beers, we can cater to the needs of more than half of the market. The trend also supports the statement that in future more people would prefer light drinks. The most common disadvantage we observe is that it is a possibility that we would loose our core brand values and image people have developed as a slightly more alcoholic and bitter tasting drink.
Another problem with the launch of MMBC light drink would be that it would need high investments and the company is not ready for it. I would recommend the introduction of new light drink but would not suggest the same brand name to be used for the new product. As practiced by Toyota when launching Lexus, I would recommend a use of new brand name for the light drink. This would ensure that the new product would not diminish the strong image of our previous product named Mountain Man Lager. In this way, we do not loose our core brand values, and we can cope up with the changing trend.
Investments are the needs of today’s business and it should be done to cope up in this challenging corporate world. Conclusion: Therefore, to conclude, I would like to suggest the introduction of light beers that keeping the situation in mind. However, for the survival of brand’s core values I would recommend the use of some other brand name so to position differently. This would ensure that we enter the new market while maintaining the previous one. References: Abelli, H. (2007). Mountain Man Brewing Company: Bringing the Brand to Light. Harvard Business Publishing.