Final Report: Mountain Man Brewing Company's Marketing Strategy

This report provides a comprehensive analysis of Mountain Man Brewing Company's situation, focusing on the opportunity to introduce a new light beer to target the younger generation and adapt to changing consumer preferences. The report examines the decline in sales of the traditional beer due to shifts in consumer demographics and preferences towards light beers. It proposes a strategic marketing plan, including a mix of traditional and grass-roots marketing, collaboration with independent breweries, and on-premise branding to reach the target audience. The report also analyzes the action rationale, emphasizing the importance of the light beer for future growth and market share, the potential drawbacks, and the competitive landscape. The conclusion summarizes the key findings, highlighting the importance of adapting to market trends while maintaining brand authenticity and quality.

Mountain Man Brewing Company – Final Report

Running Head: Report
Contents
Executive Summary.....................................................................................................................................2
Situation Overview......................................................................................................................................3
Action Overview.........................................................................................................................................4
Action Rationale..........................................................................................................................................7
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Running Head: Report
Executive Summary
The company faced a rewarding opportunity with the changed scenario of time, the young
drinkers are increasing yearly and as due to shifting in the traditional drinkers’ preferences, the
sales graph is low for the company. This situation is an opportunity because these young drinkers
are not loyal to any brand yet and they are here to discover their loyalty. In order to take
advantage, the company should introduce a new beer that particularly targets the young
generation and cater their need, as the time is growing the drinking preferences and customer age
group is changing too. By strategically planning and having a mix marketing plan with that of
grass- root marketing that focuses on its audience particularly by targeting their lifestyle and
getting in touch with them more nearly by giving them a confidence in the brand rather than just
focusing on the limited audience. To think the future of the company the company with the
introduction of the new “Light” beer should collaborate with the independent breweries for the
better link with the young generations and side by side maintain the old authentic traditional taste
and style of the Mountain Man Larger and maintain its uniqueness and authenticity by
introduction of a new member chain not forgetting the two different targeted audience for the
two different products/members of the company (Abelli, 2007).
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Running Head: Report
Situation Overview
When it comes to a legacy brew in a matured business than Mountain Man Larger has its
different place. The company was successful because of the different taste and flavor, the dark
color and the design of originality is the picture of coal miners’ crew that is printed on the brown
bottle, while maintaining their authenticity and they focused on the brand image and their core
drinkers who are blue collar, middle to low-income man. The perception of quality and brand
loyalty is the key feature that is maintained throughout. The amount of alcohol content that is
slight higher than the other, the percentage of water content, and the smoothness that the beer
carrier with a bitter flavour makes it unique and contributed to the brand equity.
As the time has grown and drinkers’ preferences and age group has changed the company was
experiencing a decline in sales of their traditional premier beer. Because of the initiatives that
focus to encourage moderation, awareness about responsibility and health there is a large shift in
beer drinkers and due to which competition was increased with the drinks that have less impacts
on health and are a symbol of responsible drinking such as wine and an increase in the federal
excise tax added to the factors that impacted the company sales.
Even the company is facing a decline in its sales still during this time the company is in
profitable range and that is the most rewarding opportunity that could be used by company
wisely. The changes in sales volume are primarily driven by changes in consumer segment as the
key drinkers are now the young drinkers and the first-time demographic drinkers that are
increasing yearly which are in a process to establish their loyalty to any particular kind of brand.
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And another is a trend that is the growth and likability of light beer that has captured large
market shares. This situation is an opportunity for the company as the company can follow the
trend and launch a new light beer and branding it in a way to keep in the beer family and attract
the larger group of young people towards them as they are not loyal and fond of any beer yet. As
they cover a larger share of the market it will eventually help in the growth of the company sales.
As the youngsters already know about the authenticity, quality and the unique West Virginia
toughness but as consider it strong and for working man, an introduction of a new light member
in its beer family will definitely attract the crowd and give it a swing to them.
Action Overview
The company should take advantage by following the trend and introducing a new light beer
segment maintaining the quality and authenticity by totally introducing it for the younger
generation and keeping it bound with the beer family which has already established its name. It
should be collaborated with the independent breweries and should even target on-premises
branding for the new product like the restaurants and bars. The company need to invest a bit in
the advertisement and marketing as it should introduce the light beer not as another product but
as a family product that took care of each member and generation so that a loyalty would be
achieved greatly.
Strategy: Mountain Man’s target customers will be the younger generation that always looks for
a trendy change and new introductions in the established brand name and also cover a large share
of consumers’ market which is steadily increasing every year. Major domestic producers will be
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the key competitor in this as they compete in better production and advertisement strategies.
Mainly three companies are dominating in this segment: Miller Brewing Company, Anheuser
Busch, and Adolf Coors Company which in 2015 cover 74% of beer shipment altogether in the
Mountain Man’s region. With the introduction of the new beer, these beer sales will be
distributed to the independent breweries, restaurants and bars where more young drinkers are
there to spread the name of the new product and publicized it.
Status quo strategy should be questioned and targeted and instead of keeping the business as it is
new motive and introductions with better plans should be made to achieve a greater market share
after having a full idea and have confrontation with the competitor as it will help to enhance the
future of the company tough carry risk and cost.
MMBC should invest in a branding activities to build “brand equity” among the new targeted
customers too with keeping close their core customers and instead of just building a small sales
force for a particular set it should now expand and focus on building relation with the new
customers chain that is increasing year by year and should serve equally by promoting two
different product as two different sub brands in market that focus on particular type of customers
each so that a larger market area is covered and more shares are captured by company by
building loyalty and relationship of best quality of services without sacrificing the growth and
traditional value that has made them a brand.
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Tactics: Mountain Man always followed a strategy of traditional advertisement by spreading a
word of mouth from its consumers but according to stats the success ratio of grass-roots
marketing is of more influence when it comes to beer brand awareness. If they follow a trend and
use the lifestyle advertisement to reach the young drinkers, and spend more on broadcasting the
introduction of a new ‘light’ beer member to the family in a way that they can take both the
generations, the middle man that is already a loyal customer to them and the young drinkers who
are yet to discover their loyalty towards a brand. Bringing them together and linking with a
reason, to share the same beer family with a tradition and authenticity in different age groups
will be fruitful for the sales and branding of the company without spoiling its image. Grass-root
marketing will work perfectly as in this as it capitalizes on existing social trend and gives the
audience what they want, as these campaigns are smaller, highly focused and targeted.
Where the area is to be distributed and the communication and marketing should be done in a
way that it will turn this new introduction into a brand in the eyes the new targeted audience by
maintaining the perfection in the taste as its previous product..
It should have collaborated with the new independent breweries so that the confidence in the
young drinkers could be achieved and their myth of big-business antisense could be removed.
Young generations always focus on what they see and can relate so marketing should be more
related to their lifestyle and certain perks and incentives should be given as brand promotion to
attract them for the brand and achieve their loyalty towards it. It should be easily available to
them and that too with a very competitive price when compared to the market to increase the
attractiveness of the product.
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Action Rationale
As Young drinkers are well aware of the authenticity, quality, and a unique “toughness” of the
already established brand of Mountain Man Larger and but think this beer to be very strong and
suitable for a working man. As this young generation has already built an anti-factor towards the
big businesses values, they tend to show some appreciation for the new segment of the brand and
it will gain momentum if it will be associated with independent breweries that will particularly
focus on the young drinkers and their taste could be the best action to take an advantage of the
opportunity.
If we think in a strategic manner than light beer is important for the future of MMBC’s as it is
newer and fastest growing product category which as a great influence among the young drinkers
that are our main focused targeted consumers are they cover a large market space. Light is the
only beer that has consistent growth in the market. It will help the company to grow and capture
the shares of on-premise locations as they are more appealed to young drinking generation and
women too who are the two frequent groups in this location.
If we launch light beer of this brand if will not cost much of expenditure in the plant setup and
equipment handling as there is already excess capacity present in the facility. As the company is
very used to in making these kinds of investments the launching of a new product will not be
very expensive for the company. As they don’t have to launch a new brand of beer nationally or
locally but just a member of the well-established beer family has to be introduced. And its sales
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in two years will generate a profit that covers all the investment cost and the overall negative
impact on the sales of Mountain Man Larger.
Here the potential drawback could be that though the blue collar customers who are very loyal to
the brand and the company of MMBC’s cover a small percentage of drinking customers, when it
comes to sales they cover a large sales percentage in the market. When we calculate the loyalty
rate for the Mountain Man Larger brand that it comes out to be 53% solely that is much higher
than the rate of other competitive products present in the market. (i.e., 42% for Budweiser and
36% for Bud Light.) so if these customers stop feeling the same for their brand than it can cost
heavy losses for the company.
If a light beer is introduced it should be very competitive in terms of price, taste, and services as
there is already a setup market by the other companies who are following a light beer trend and
should focus that the light beer should not draw time, attention and resources from the larger that
has the main share of their profit.
It could be possible that the Mountain Man brand will vanish in the sea of new product
introduction as competing already established light beer brand is a bit of difficult task as the
branding and marketing are done by those companies who introduced new products frequently is
bit difficult for a brand who works on a tradition and has particular product that define its
creditability.
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Conclusion
The above careful analysis reflects that the idea to introduce a new brand of Mountain Man light
and then associating it with the independent breweries to target the young generation is the best
strategic outcome of the situation if we keep in mind the long-term success of the company. As
we are stretching the authentic brand without many implications and focusing on the grass root
marketing as an introduction to the new member of the family instead of the old traditional
marketing. Introduction of new product will help the future of the company as the drinkers’
preferences are getting changed day by day and a larger share is covered by the young drinkers
who want something light, classy, pocket-friendly and that they can relate to their lifestyle with a
tag of brand that thinks to cater their need and can link with them.
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References
Abelli, H. (2007). Mountain Man Brewing Company: Bringing the Brand to Light. Harvard
College.
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