Integrated Marketing- Mountain Man Brewer Case
Daniel, Yu-Chen Liang
1. What has made the Mountain Man Brewing Company successful? What is distinctive about MMBC’s product, customers and brand equity?
Mountain Man had high quality product. Those attributes included the smoothness, percentage of water content, and drinkability. The beer it produced was flavorful and bitter-tasting. Mountain Man had a well-known reputation as quality bee throughout the East Central region.
Mountain Man targeted clearly on the blue-collar, middle-to-lower income men whose age were over 45. These core drinkers had high loyalty to Mountain Man. Loyal customers purchased Mountain Man ...view middle of the document...
Furthermore, as only a regional brewer, Mountain Man had relatively limited promotion and advertising budgets compared with national brands. Therefore, it really needed a strong product that responded the market’s needs and wants so that the product could speak itself in order to survive the keen competition.
3. What has caused MMBC’s decline in spite of its strong brand?
a) The consumers’ tastes were changing. According to the case, the beer consumption had declined by 2.3% due to the competition from wine and spirits-based drinks. What’s more, an increase in federal tax as well as health concerns also caused the decline of the sales of beer.
b) Large national brands that maintained economies of scale in brewing, transportation and marketing put tremendous pressure on the smaller, regional brewers like Mountain Man.
C) The key consumer segment is the younger drinker who aged 21 to 27. They were first time drinker that not founded loyalty to any brand yet accounted for large beer consumption. The segment tended to purchase more light beer instead of lager.
D) Younger customers preferred to buy mainstream brands rather than regional ones.
E) More and more competitors such as import and craft beers.
4. Is Mountain Man Light financially feasible for MMBC? What is required for it to break even in two years? What market share would it need? Is the budget appropriate?
In order to have a new lager line, Mountain Man needed lots of thing and financial support. Although they had existing machines, equipment, and plants, they still had to expand those in the long run, which required enough funds. Besides, to promote a new product also consumes advertising and agency costs. In the meantime, administrative and incremental SG&A costs were needed to support the operation. As a result, the marginal...