Mountain Brew Company

1) MMBC elements of success and distinctiveness:

- Tradition

- His history and status as INDEPENDENT, family owned brewery

- Must brand for blue collar, middle to lower income men over age 45 (as Chevrolet or John Deere)

- Prizes: Best known regional beer of west Virginia; Best Beer in West Virginia (in 2005 since 8 years); America’s Championship Lager (at American Beer Championship)

- Quality and brand loyalty perceived

- Distinctively bitter flavour and slightly higher than average alcohol content that uniquely contribute to the company’s brand equity

- Perceived as a connecting hereditarian beer (element of continuity over the generations -> traditional beer passing the generations over the time)

- Strong customers’ loyalty: brand loyalty rate was measured as 53%, HIGHER THAN THE RATE OF COMPETITORS (i.e. 42% Budweiser, 36% Bud Light)

- AUTHENTICITY, QUALITY, TOUGHNESS

- ANTIBIG BUSINESS -> independent brewery

- Word of mouth

- DISTINCTIVE BROWN BOTTLE WITH THE ORIGINAL DESIGN SINCE 1925

- MMBC has done several activities during the year to build “brand equity” with core consumers and establish its own small sales force also with the task to getting off-premise locations (likeliquor stores or supermkts) to embrace Mountain Man

2) Reasons of MMBC decline in spite of its strong brand:

- Light beer consumption grew up of 4%, while premium beer consumption felt of 4% (but superpremium- craft and high-end domestics raised of 9%)

- In east central region: Beer consumption felt down from 2004 to 2005 (from 37,318,269 to 37,191,077) and generally is possible to enlighten an almost declining trend from 2002 to 2005 (from 37,640,992 to 37,191,077)

- Since 2001 u.s. per capita beer consumption had declined by 2.3% , largely due to competition from wine and spirits-based drinks, increase in the federal excise tax, initiatives encouraging moderation and personal responsibility and increasing health concerns

- COMPETITION: Strong presence in the...