GROUP 10

 TEAM MEMBERS
 Ankit Maurya - 2110006
 Dhruv Gandhi - 2110016
 Kartik Garg - 2110029
 Sakshi Agrawal - 2110052
 Samar Singh - 2110054
 Yash Sahu - 2110065
What has made MMBC Successful? What Distinguishes
itself from competitors?

 Manufactured the exceptional Beer with a great brand name and quality.
 Better positioned the beer with its core drinkers- blue-collar, middle-to-lower
income men over age 45.
 Large investment in branding activities to build “brand equity” with its core
consumers.
 Never been seduced by the other guy market.
 Attributes that defined the quality of Mountain man- smoothness, percentage
of water content , drinkability.
 Bitter flavor and slightly higher-than- average alcohol content make it unique.
 Major Domestic Producers:
Anheuser Bush
Miller Brewing Company
Adolf Coors company
Together they accounted for 74% of 2005 beer shipments in their region.

Second-tier Domestic Producers:

Pabst Brewing company
Tennessee
They accounted for 12.5% beer shipments in the East Central region in 2005.

Competitors Import Beer companies:

Heineken
Molson
Corona
They had controlled about 12% of the regions market.

Craft Beer Company:

Sam Adams
Sierra Nevada
Harpoon
They accounted for remaining 62% of a market.
What about these factors enabled MMBC to create such a strong brand?

To raise brand awareness, they used Grassroots marketing.

Used off-premise locations to sell the beer.

Greater alcohol content and a distinct bitter taste.

Core attributes: Uniqueness, quality and, authenticity.

Effective bottling and packaging.

Its status as an independent, family-owned brewery gives it a genuine

feel.

Positioning: Brand among working middle-class males.

Invested in a variety of branding efforts to increase brand equity among

core customers.
 Strengths Opportunities
• Market leader • Targeting younger demography
• Established brand value and name • Can focus on customer value
• Varied range of features • A huge number of women prefer light
• Promotion Strategy & Customers
beer
• Loyal customers

 
• Expenditure of advertising in an
SWOT
inefficient manner
• Inability to participate in the light • Risk of destroying core brand.
beer advertising industry due to a • Less focus and alienation of core brand
lack of financial resources. customers
• New brand extension will spread • Changing consumer preferences and tastes
already thin resources of the • Decline in revenue
company

Weaknesses Threats
Marketing Mix for Light beer

Product Price Promotion Place

• Lighter version • Same pricing for • Promotions can • On premise

of the lager on premise and be done same as locations would
• Separate off premise Lager at grass- be beneficial
labelling for location root level using • Attract young
light beer • Price per barrel: word of mouth men and women
bottles $97 • Advertisements
• Needs to to attract young
maintain same crowd i.e., the
quality, target market
authenticity as • Offer discounts
lager to retailers,
distributors and
customers
  Increase in the competition in the market
 Wine and spirit drinks
 Existing and new domestic brewers, imported and
craft beers
 Increase in the taxes imposed by the Federal
excise tax

Decline of MMBC 43% of COGS



 Increase in the health consciousness among the

consumers
 Did not target the potential market of young
buyers
 Younger consumers thought MMBC is associated
with blue collar people as they had anti-big-
business value
 Pros and Cons of Introducing Mountain Man Light Beer

Expand Market Share Increased advertisement

Diversity brand portfolio expenditure /Difficult to
market newer brands

Enhance core brand value New strategy for packaging,

Deliver greater customer labeling, divisions etc.
value
Attract health-conscious Compete with already
customers and women. established brands in light
  beer category

Greater revenue/ No brand Brand dilution /Core product

dilution / Lesser core cannibalization / Loss of core
product erosion customers

Low advertisement and Target market shared by

production cost larger breweries Increased
Greater revenue production cost

PROS CONS
  The Product is Expected to cover all its costs of
Investments and to become profitable.

 The Light beer has a growth expectation of 4%

CAGR.
Should we
introduce  The Light beer Accounted for almost 50.4% sales
volume in year 2005
Mountain Man
Light? Using the 4P mix they should do effective

marketing to provide Value to existing and new
customers.

 Thus, Mountain Man should introduce Mountain

Man Light.
 Revenue forecast of light beer
2005 2006 2007

Light beer consumption 18,744,303 19,494,075 20,273,838

CAGR 4% 4%

Estimated growth yoy 0.25 0.25

Estimated sales in barrels 48,735 101,369

Estimated Revenue $4,727,295 $9,832,793

 REVENUE
Net Revenue $50,440,000

Barrels sold $5,20,000

Selling price of barrel $97.00 ANALYSIS

Cost price of light beer $71.62

Profit earned $25.38

SG&A Cost $90000

Advertising campaign $750000

Total cost $1650000

Break even volume(TC-Profit) $65012

 Is it Feasible?
 The revenue $14560088 generated after 2
years will cover all investment cost.
 It will be profitable past 2007
 Helps the company to diversify its
portfolio
 Cater to market growing by 4%
 Increase brand awareness and loyalty
 Light beer is a feasible option
WHAT IF IT DOESN’T WORK OUT?

The company has sufficient

MMBC has a loyal fan- Brands must be
resources to launch a new
following which would distinguished in consumer’s
product and face the
continue buying their mind to make informed
consequences if it doesn’t
original offering decisions
work

The losses faced by MMCB

They can also market the
(if the light beer doesn’t
light beer as a different
work) are expected to
entity altogether with no
recover in a few years
association with Mountain
looking at the performance
Man Lager
of their lager
 CONCLUSION

In any scenario, Investment cost will be Launching a new beer

Mountain Man light beer covered and the new will result in making the
is expected to breakeven beer brand will become portfolio of the company
by the end of 2007 profitable after 2007 more comprehensive

Mountain Man can keep

Light beer has created a
the rugged image of its
niche in the alco-bev
existing brand by
industry and the market
differentiating between
is growing at a rapid rate
the brands they offer
YES! MMBC should go
ahead with launching
a light beer

Image credits:
twitter.com/mountainmancork
THANK YOU!!