Mountain Men

-------------------------------------------------

Mountain Man Brewing Company:Bringing the Brand to Light

Market definition: American Beer Industry Market size: $75 billion industry

Industry trends:

* Over the previous six years, light beer sales in the United States had been growing at a compound annual rate of 4%, while traditional premium beer sales had declined annually by the same percentage.

* U.S. per capita beer consumption had declined by 2.3%, largely due to competition from wine and spirits-based drinks, an increase in the federal excise tax, initiatives encouraging moderation and personal responsibility, and increasing health concerns.

* Economies of scale of large national brewers.

* Key consumer segment was younger drinkers (13%) who preferred light beer and accounted for 27% consumption.

SWOT analysis

Strengths | Evidence | Implications |

Market leader and established brand name. | It had held the top market position among lagers in West Virginia for almost 50 years.Ability to leverage awards as “American Champion Lager”. | Strong brand awareness motivates consumers to purchase Lager. |

Strong brand equity | Mountain Man Lager’s distinctively bitter flavour and slightly higher than-average alcohol content that uniquely contributed to the company’s brand equity | Mountain Man is able to leverage its brand equity and reputation to new products |

Weaknesses | | |

New brand extension will spread already thin resources of the company. | Estimated cost of $10 million to $20 million in TV advertising. | Company will face financial problems if the new product fails to take off. |

Company does not have the budget to compete in the light beer advertising market. | Funds needed for advertising campaign, staff costs and ongoing marketing expenditure | Important to come out with a good marketing campaign that effectively utilise all the resources. |

Opportunities | | |

Opportunity to reach younger demographic and...