BRAND MANAGEMENT
MMBC CASE
(Case Analysis)
Abstract
Founded in 1925 by Guntar Prangel, the Mountain Man Beer Company (MMBC) established
Mountain Man Lager as a renowned quality beer in the East Central US by the 1960s. By 2005, with
revenues exceeding $50 million, it sold over 520,000 barrels mainly in Illinois, Indiana, Michigan,
Ohio, and its native West Virginia. Positioned similarly to Miller and Budweiser, priced around $2.25
for a 12-ounce serving of draft beer and $4.99 for a six-pack, Mountain Man Lager targeted middle-
aged, blue-collar men.
MMBC's reliance on its heritage and independence forged an aura of authenticity. Oscar Prangel led
the company in 2006, with plans for Chris Prangel to take over in five years.
Objective
This case study aims to:
Understand MMBC's strategy in positioning Mountain Man Lager amid tough market
competition.
Analyze its methods for sustaining market share
Recommend whether launching Mountain Man Light, a lighter variant of the core lager, is
advisable.
Conclusion
Introducing a new product always carries risk, but relying solely on a fading demand for an existing
offering won't likely change Mountain Man Beer Company's fortunes. Light beer presents a
significant sales opportunity due to market demand. It serves as a gateway to attract new consumers,
potentially introducing them to Mountain Man Lager. While the strong association with Mountain
Man Lager might pose flavor-related challenges, appealing directly to affluent light beer drinkers
could broaden the company's identity as a quality regional brewer.
1
a. What is Chris considering doing and what factors will he have to align to be successful?
, Chris is contemplating the introduction of Mountain Man Light, a light beer variant, to diversify the
company's product offerings and tap into the growing market for lighter beers. To ensure success in
this endeavor, several factors require alignment:
Target Market: Chris needs to carefully evaluate the impact on Mountain Man's existing
consumer base, primarily consisting of blue-collar, middle-to-lower income men over 45,
when introducing a product tailored to younger, more affluent consumers who prefer light
beers. Assessing potential market segmentation and targeting strategies is crucial.
Preservation of Brand Identity: Introducing a new product risks diluting the established
brand identity of Mountain Man Lager, known for its robust and working-class appeal.
Aligning the branding and positioning of Mountain Man Light with the overall brand strategy
without harming the core brand's integrity is essential.
Mitigating Cannibalization: There's a potential risk of cannibalizing sales of Mountain Man
Lager by introducing a competing product. Chris must carefully strategize to minimize any
negative impact on the flagship product's sales and profitability.
Competitive Edge: In a highly competitive market, differentiating Mountain Man Light from
established brands in the light beer segment is crucial. Developing a strong marketing and
positioning strategy to carve out a distinct identity is imperative for success.
Operational Preparedness: Introducing a new product demands additional production
capabilities and streamlined distribution channels. Assessing the company's readiness to
meet these demands without compromising the quality of existing products is essential.
Financial Viability: A thorough financial analysis is crucial to determine the potential
profitability of Mountain Man Light and ensure it aligns with the company's financial
objectives.
b. What goal should MMBC (Chris) have?
Under Chris's leadership, MMBC's goals should encompass:
Market Expansion: Penetrating new market segments and demographics, especially among
younger and more affluent consumers.
Brand Strengthening: Building a strong brand image for Mountain Man Light that
complements the existing brand while attracting a new consumer base.
Revenue Diversification: Generating additional revenue streams from Mountain Man Light
without negatively impacting the sales of the flagship Mountain Man Lager.
Consumer Retention: Maintaining brand loyalty among existing consumers while
simultaneously attracting a new clientele.
Market Position Enhancement: Reinforcing MMBC's position within the craft beer market by
establishing Mountain Man Light as a notable contender in the light beer segment.
MMBC CASE
(Case Analysis)
Abstract
Founded in 1925 by Guntar Prangel, the Mountain Man Beer Company (MMBC) established
Mountain Man Lager as a renowned quality beer in the East Central US by the 1960s. By 2005, with
revenues exceeding $50 million, it sold over 520,000 barrels mainly in Illinois, Indiana, Michigan,
Ohio, and its native West Virginia. Positioned similarly to Miller and Budweiser, priced around $2.25
for a 12-ounce serving of draft beer and $4.99 for a six-pack, Mountain Man Lager targeted middle-
aged, blue-collar men.
MMBC's reliance on its heritage and independence forged an aura of authenticity. Oscar Prangel led
the company in 2006, with plans for Chris Prangel to take over in five years.
Objective
This case study aims to:
Understand MMBC's strategy in positioning Mountain Man Lager amid tough market
competition.
Analyze its methods for sustaining market share
Recommend whether launching Mountain Man Light, a lighter variant of the core lager, is
advisable.
Conclusion
Introducing a new product always carries risk, but relying solely on a fading demand for an existing
offering won't likely change Mountain Man Beer Company's fortunes. Light beer presents a
significant sales opportunity due to market demand. It serves as a gateway to attract new consumers,
potentially introducing them to Mountain Man Lager. While the strong association with Mountain
Man Lager might pose flavor-related challenges, appealing directly to affluent light beer drinkers
could broaden the company's identity as a quality regional brewer.
1
a. What is Chris considering doing and what factors will he have to align to be successful?
, Chris is contemplating the introduction of Mountain Man Light, a light beer variant, to diversify the
company's product offerings and tap into the growing market for lighter beers. To ensure success in
this endeavor, several factors require alignment:
Target Market: Chris needs to carefully evaluate the impact on Mountain Man's existing
consumer base, primarily consisting of blue-collar, middle-to-lower income men over 45,
when introducing a product tailored to younger, more affluent consumers who prefer light
beers. Assessing potential market segmentation and targeting strategies is crucial.
Preservation of Brand Identity: Introducing a new product risks diluting the established
brand identity of Mountain Man Lager, known for its robust and working-class appeal.
Aligning the branding and positioning of Mountain Man Light with the overall brand strategy
without harming the core brand's integrity is essential.
Mitigating Cannibalization: There's a potential risk of cannibalizing sales of Mountain Man
Lager by introducing a competing product. Chris must carefully strategize to minimize any
negative impact on the flagship product's sales and profitability.
Competitive Edge: In a highly competitive market, differentiating Mountain Man Light from
established brands in the light beer segment is crucial. Developing a strong marketing and
positioning strategy to carve out a distinct identity is imperative for success.
Operational Preparedness: Introducing a new product demands additional production
capabilities and streamlined distribution channels. Assessing the company's readiness to
meet these demands without compromising the quality of existing products is essential.
Financial Viability: A thorough financial analysis is crucial to determine the potential
profitability of Mountain Man Light and ensure it aligns with the company's financial
objectives.
b. What goal should MMBC (Chris) have?
Under Chris's leadership, MMBC's goals should encompass:
Market Expansion: Penetrating new market segments and demographics, especially among
younger and more affluent consumers.
Brand Strengthening: Building a strong brand image for Mountain Man Light that
complements the existing brand while attracting a new consumer base.
Revenue Diversification: Generating additional revenue streams from Mountain Man Light
without negatively impacting the sales of the flagship Mountain Man Lager.
Consumer Retention: Maintaining brand loyalty among existing consumers while
simultaneously attracting a new clientele.
Market Position Enhancement: Reinforcing MMBC's position within the craft beer market by
establishing Mountain Man Light as a notable contender in the light beer segment.
