Mountain Man Brewing Company Case Analysis First Draft

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Begin with a short introductory paragraph that gives a brief statement of the problem.

Say the problems that you have named in a bullet-point list.

As you state each problem, describe the cause below it.

For each problem, you must have a recommendation. Four problems, four recommendations. You must lay the paper out formally, so it is easy to see and understand. Problem 1 is the most significant issue, Recommendation 1 is how we will solve this. Problem 2 is the next most significant issue and Recommendation 2 is how to solve that and so on.

Keep in mind we want 4-6 named problems ranked and listed in bullet form. Under each Problem Bullet, indent and insert another bullet this one to explain the cause of the problem.

What has caused Mountain Man Brewing Companies decline despite its strong brand?

Demographic shift to young drinkers who accounted for 13% of adult population but consumed 27% of total beer consumption, who increasingly preferred light beer

Declining of the core customer base of MMBC (age:45+)

Due to increase in customer base of light beer from 29.8% in 2001 to 50.4% in 2005

A part of customer of MMBC getting cannibalized

Due to recently repealed arcane laws, retail stores are selling beer at deep discount

Augmenting competition from wine and spirited based drinks

Increase in federal excise tax

There have been initiatives encouraging moderation and personal responsibilities towards drinking behavior

Unable to spend heavily to support the sales level in the premium segment as compared to large domestic brewers

The increasing preference of distributors to larger brands contributing higher margins

Due to economies of scale in transportation and marketing, large national brewers were able to pressurize regional brewers

Due to health consciousness, consumption of strong beer is also declining

No new introduction and innovation in the product line a/c to the changing scenario

Besides the strong brand recognition along with customer’s belief of excellent quality from the MMBC still, revenue declines in 2001 because of overall downfall in the beer industry in U.S per capita consumption with the increasing of competitor’s product such as spirit-based drinks and wines.

No doubt there is majority type of customers who chose MMBC brand by their heart but still there was a decline in that segment of the customer and distributors preferring other new entrants in the market for many sales commission earnings. It makes hard to compete in the competitive environment with a single line of a product among the competitors offering the number of product lines. Also, new consumers are only in that number which is MMBC has currently in its fraction of current customers.

I predict that in future this decline in Lager MM continues to decline with the same ratio.

Challenging company`s ability to still be profitable

Struggling to keep steady share of its market segment against large domestic brewers

Competition from alternate beverages- wine and spirits

Increase in Federal Excise Tax (up to 43% of COGS)

Increasing health concerns of consumers

Negligence in targeting the growing target customers- women and young generation

Pressure from other existing large national domestic brewers, craft and imported brands.

US per capita beer consumption has declined by 2.3% since 2001

Growth in light beer segment due to youth presence

Aging target market

Increased federal taxes

Deep pocketed competitors

Change in customer preference

Describe the competition and threats to Mountain Man Brewing Company.

Recently, the state of West Virginia repealed the arcane law; allowing retail stores to sell beer at discount prices. This creates pressure on old school regional breweries, like Mountain Man Brewery Company, to try and compete with the “top-dogs” of the industry.

Augmenting competition from wine and spirited based drinks

MMBC is in the category of leading brands among working class people. MMBC is above premium brands and below from the special brands in the region, therefore, it is price in the highly competitive category. Leave a messaging strategy to keep its sales growth and competition with its competitors.

Besides the strong brand recognition along with customer’s feeling of superior quality from the MMBC still, it revenue declined in 2001 because of overall downfall in the beer industry in U.S per capita consumption with the increasing of competitor’s product such as spirit-based drinks and wines. As this MMBC brand is popular in working class they perceive it as high quality and upper-class status product as compared to Miller and Budweiser. Through this MMBC can gain its higher return as compared to its competitors without going into deep competition with the competitors.

Anheuser Bush, Miller brewing Co. and Adolf Coors owning 74% market share of the overall brewing market. These companies have 84% market share in the light beer market.

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Competitors for Mountain Man are Anheuser Bush, Miller brewing Co. and Adolf Coors having 74% market share of the overall brewing market. These three companies have 84% market share in the light beer market. They rely heavily on broadcasting market as well product diversification to create barriers of entry for other brands.

Competition from larger national brewery brands giving out deep discounts.