Mountain Man Brewing Company
Bringing the Brand to light.
Submitted to:
Dr. Colton
Submitted by:
Ruhullah Farahi
November, 2017.
Synopsis:
Mountain Man Brewing Company was established in 1925 as a family owned business company. The company has been providing its loyal customers with quality, bitter flavor and authentic beer since its establishment with Mountain Man Lager.
The company has the highest percentage of customer loyalty of 53% among all national companies. Not only that, the company has been winning “The best beer” title for eight consecutive years.
However, company’s sales have dropped for the first time in its history in 2005. The company had revenue of USD 50M in the year. The sales decline has been mainly due
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Ofcourse there has been other companies active in production of beer. The company has been competing with four categories of beer production companies. Major and second tier domestic producers, import beer companies and specialty brewers. Distinguished companies such as Anheuser Bush, Miller Brewing, Pabst Brewing, Genessee, Heineken, Molson, Beck’s, Corona and etc. have been Mountain Man’s all time rivals. But what made Mountain Man unique was its ownership. The company has been run and controlled by as a family business. This helped the company to survive the stiff competition. As Brain Tracy, CEO and chairman of Brian Tracy International, emphasizes that uniqueness of a product is directly related to uniqueness of the …show more content…
29.8% in 2001 compare to 50.4% in 2005)
Beer drinkers segment have changed as well. The future is now with those companies who can target 21-27 ages. And this segment only consist only 2% of MM brewing company.
Competition as well has affected sales. Since national brands spend millions of dollars in advertisement also larger companies enjoy from economies of scale which ultimately have wiped out smaller companies.
Mountain Man has been the only company that hasn’t expanded its brand. Promoting and launching Mountain Man light is further justified as under:
Mountain Man Lager has the bitter flavor and it needs to diversify and expand it to light beer audience.
Mountain Man Brewing Company has loyal customers. If the company advertise the new product right by not changing the face of Mountain Man Brewing Company, it could still maintain those loyal customer and prevent them from dilution.
The company already has excess capacity to produce the new beer.
The youngsters are the new profitable segment while the blue color segment is corroding with
Quality of products can be quoted as one prime quality that can be observed in both the companies. Manufacturing products that are environmental friendly is another common and a beautiful aspect that is common among the two companies. Molson Coors, being an old company is driven mostly by its values whereas Anheuser Busch is moving forward with the motto of “dreaming big” [1]. Both the organizations treat the employees in a good manner making them feel like they are a part of the organization and providing them with the necessary amenities required. Passion and Integrity are a few ground values on which both the companies rely on. Values such as Creativity of Molson Coors sometimes result in a product that might not gain popularity among the customers which would result in the loss of time, thinking and money invested in getting the product out. On the other hand, Anheuser Busch is growing popularity day by day by setting up high goals and working hard to make its presence
The beer brands were classified as popular, premium, super premium, and ultra-premium. The distinguishing factor determining if brands belonged to different classes was whether beer was produced by four largest companies (Anheuser-...
The turnover of the company in 2008 was $15,627 million, gradually decreased in 2009 to $14,552 million which again decreased in 2010 to $13,772 million. We can see a gradual drop in the turnover.
While re-focusing on the original products would bring about high profits, as these are the high sellers and they could finally meet market demand, they run the risk of becoming boring and obsolete in the customers’ minds without new products. This makes the potential profitability high in the short-term, but also more risky in the long-term. It would be very easy to implement an original focus, and it would cut down on equipment and research development costs. In the time it takes to brew thirteen batches of the risky Adventure Brews, Amsterdam could brew twenty batches of All Natural or Downtown Brown.
Mountain Man Brewing Company was founded in 1925 by Guntar Prangel who was a coal miner with a home brewery. Consequently, his single product brand “Mountain Man” is marketed largely to other coal miners. Today, the company is still seen as an attractive brand that produces a quality product. Mountain Man Lager emphasizes the use of quality ingredients as well as a bitter flavor and dark coloring. Mountain Man has been an established brand for over 75 years and has the loyalty of older blue-collar clientele. Their lager is the market leader in West Virginia, but Mountain Man also has a strong following in other states such as Illinois, Indiana, Michigan and Ohio. It has generated over $50 million in revenue with 520,000 barrels sold. Not to mention, Mountain Man Lager has been voted as the best known regional beer and has also won “best beer” awards in West Virginia and Indiana. The main advantage that Mountain Man Beer Company has is the loyalty of its consumers, without this loyalty sales will dramatically decrease.
In 1927, United Biscuit Company of America was formed. By 1944, there were 16 bakeries in the network from Philadelphia to Salt Lake City and their cookies and crackers were marketed under a variety of brand names for the next 22 years.
... I believe these types of products would tap into the quality that Mountain Man Lager is known for and seem like a better fit with the Brand Mountain Man is famous for. This would also open up opportunities to extend the brand into brew pub restaurants, which have become very popular in recent years. I think that Mountain Man’s unique distinctive history and brand recognition could be used to create a memorable restaurant experience. The main point of this argument is that MMBC should continue to explore opportunities to improve profit. In a mature market, I believe the worst thing MMBC could do is to settle for the “status quo”.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
... them. The expansion into other areas in the world is something that the company is constantly considering. Expanding their advertising and marketing to reach those individuals in the United States that have not “experienced” the craft beer industry is a constant tactic the company considers. There are also potential environmental threats that the company realizes and considers while making their business decisions.
... a year. To cater to increased demand, the company can consider acquiring other breweries that are going out of business and that will see substantial savings on capital investments.
Louis. Known for American-Style Lagers, such as Budweiser and Bud Light, AB services a variety of beer segments, which combined holds a 46.4% share on the U.S Beer Market (IBIS World US, 2015). Operating 16 local breweries, 17 distribution centers, and 23 agricultural and packaging facilities in the Unites States, the Budweiser brand represents a capital investment of more than $15.9 billion. Named the Brand of Year for the Beer and Spirits Category in 2014, Budweiser holds a long standing tradition of being the All-American Lager and King of Beers. Following a brand strategy which emphasizes focus brands when determining marketing investment and prioritization, Budweiser is the company’s core global focus brand, ranked globally since
Diageo has long been the front-runner in the premium drinks business. Its brands include Guinness, Smirnoff, Bailey's, Johnnie Walker, and Cuervo complimented by broad range of local and specialty brands from around the world. In 2002, Diageo held a 15% (United States-Spirits, 2002) market share and was by far the leading manufacturer of spirits in the United States followed by Pernod, and Fortune Brands, Inc. The market is expected to have 9.8% (Huddleston, 2005) growth in the next three to four years, so new entrants may find the going hard unless they have capital to sustain themselves.
Based in California, the Monster Beverage Corporation (MNST) is a holding company and conducts no operating business except through its consolidated subsidiaries (Monster Beverage Corporation, 2017). Through its consolidated subsidiaries, the company markets and sells energy drinks such as Monster Energy, Monster Energy Extra Strength, NOS, Full Throttle and Burn. Coffee drinks, soft drinks, and energy shakes complete its product portfolio. Monster Beverage Corporation is the second largest energy drink maker and has sold over 10 billion energy drinks in the past 12 years (Bailey, 2015).
In addition, 47.4% of its turnover comes from innovations launched or products that have been renewed in the last three years. The strategy of the company is to carefully monitor the needs of its consumers and based on that deliver outstanding product quality.