Daniel Green

02/22/10
Prof. McCarthy
J610
Case Study #3: Mountain Man Brewing Company

As was illustrated in the article, Should You Launch a Fighter Brand, there are five questions Chris
Prangel needs to ask himself prior to launching a new light beer to expand the reach of his company's
offerings while simultaneously challenging market share of existing competitor brands without
hijacking the profits of the established Mountain Man Lager.
A concern among many of the MMBC execs is that Mountain Man Light {Light) would
cannibalize Mountain Man Lager {Lager) revenue. However, according to the data this is an
unfounded concern. Light would target a completely different market than Lager does. Light would be
catering to the tastes of a younger, growing population:Drinkers, 2J-27 years of age. This group is
made up of the covetecTgroup of first-time drinkers. Also, this group hasrT't yet formed brand loyalties,
which makes it even more important to reach them at an earlier age. Further, this population contains
the only beer category demonstrating consistent growth. Lager, on the other hand, already has an
existing loyal following, primarily made up of older, blue-collar men. Therefore, Light and Lager
wouldn't be competing for existing MMBC market share.
The second point to consider when creating and launching a 'fighter brand' is whether or not
the new product will bury orjail to bury the competition. However, this isn't the goal of Prangel.
Prangel wants to ensure the long-term~stability and growth of MMBC, not necessarily the obliteration / (/ £
of his competition. Thelntrociuctiorrof Light would take market share away, even if minimally in the
short-term, from the existing light beefbfewers. This can only be viewed as a benefit for MMBC. In
the long-term, Light may create an easy transition for younger drinkers to make the transition from
Light to Lager when their tastes become more discerning.
The venture into the light beer arena could lose money if the plan isn't conservative in its
approach. A slow introduction to the local market in West Virginia in order to build momentum and a
following ambng^n almost captive audience would benefit MMBC. As the Light brand gains market
share locally it would grow in popularity through untraditional advertising: grass-roots marketing. As
MMBC has known for some time, word of mouth advertising is more effective than the traditional,
lifestyle advertising other national beer brands have used to reach young drinkers.
As the data shows, 13% of the adult population is made up of younger drinkers, 21-27 years
old. Yet this same population makes up more than 27% of total beer consumption. Additionally, the
light beer category accounted for 50.4% of beer sales in 2005 and that percentage has continued to
steadily grow. If MMBC's Light beer introduction maintains some of its core Lager principles -
quality, brand image, tradition and local authenticity - MMBC will maintain its position as a reliable
beer for the blue-collar set as well as creating a niche within Gen X and Y as an anti-establishment
source of adult-themed refreshment. It would be simple, in this case, to hit the mark with young
customers.
MMBC should target younger drinking aged adults at sports venues - especially extreme sports
events - concerts, and events popular with this segment. Sponsoring events where young drinkers are
found would increase the likelihood of grass-roots marketing through word of mouth advertising after
the event. It's cheap and effective. Additionally, the marketing campaign would need to maintain the
"tough" standard its Lager created while reaching a younger audience. "Mountain Man Light: 21st
century tough, " or "Mountain Man Light: ltfh century tough. 21st century taste. " Once an established
market has been tapped in West Virginia Light would need to make its way to other locales where
Lager is already popular: Illinois, Ohio, Kentucky, etc. The key to this approach is creating a light beer
that tastes good, is inexpensive enough for younger drinkers to afford, while branding itself as a "cool"
alternative to the same, boring light beers that have been around since your parents began drinking.