Presented to : Dr. Naresh Patel Professor , Marketing Management.

Introduction of company
y Mountain man beer company was founded in 1925 by y y y y

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
y Beer s dark colour, packaged in a brown bottle, with it s y y y y

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
y Major domestic producers : Anheuser busch, Miller

Brewing company, Adolf coors company having 74% shipment in MMBC s region y Second tier domestic producer Pabst Brewing Company and Genessee and having 12.5% shipment y Import beer companies served who desired more flavorful, bitter tasting . And control 12 % of region market y The craft beer industry divided into 4 markets : brewpubs, microbreweries, contract breweries and regional breweries

Problems
y 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
y In 2005 mountain man s revenue down 2% prior fiscal

year
y Legal issue in west Virginia repealed

arcane law because of competition which give limitation the promotion of beer

Cont
y As result retail store selling at very big discount y Distributors become more discriminating about

carrying which brand give them turnover

y Limited finance abstain them to expand

geographically
y They are loosing their target market by other

beverages

Target market
y Age : 21 to 27 y As per income : up to $74.9k y Middle to lower class y Not loyal to any beer brand and will purchase on taste and

price

Competitive advantage
y In limited geographic region the company can expand

with very less risk and less finance

y The company can target new market segment because

of brand reputation and very long experience

y Light beer was newer, fast growing product category

and only making consistent growth

Cont..
y Customer are loyal in using the mountain man beer

and having a great market

4 As in marketing
Affordability Companies should design product in such a way that it reaches the customer at affordable price y Availability Companies should go at all area of market in particular region y Awareness The company has very good brand awareness so it will be easy to enter in new segment
y

Cont..
Acceptability The customer are using premium brand and it is target of new product in same brand
y

Distribution strategy
y Instead of taking sales force to any agency company

can direct sell it to retailers y MMBC can give some amount of more commission to retailer for selling product y MMBC can update its bottle after some time to continue its brand name y It can open its own small shops where all type of beer can be available

Advertising
y It is very expensive for MMBC to give advertisement in

all the area that is mass communication y But giving ads in local news paper as well as some magazine y MMBC can take some sponsorship to any sports team which is famous in that region