Mmbc

1. What are the issues facing Chris and MMBC? What will happen to revenues, contribution and operating margin if MMBC does not do anything new (i.e., sticks with the status quo)?

a. Declining sales, for the 1st time in the company’s history. Growth of national brands (Miller, Busch, Coors) in light beers growing at 4% compounded annually. Should MMBC introduce a MMLight. Revenues decreasing 2% from previous year. If MMBC does not enter the light beer market, it could see the same result as many of the local breweries in WV, which have all closed. MMBC needs to engage and attract younger demographics of beer drinkers (consume 27% of beer) (light beer) and establish a strong brand loyalty, like it did with its current consumer base (older, blue collar).

2. What has made MMBC successful to this point? 

b. MMBC has been successful because it has presented itself as a quality product, with an artisan/local perception “West Virginia’s Beer”. With this, it has a higher brand loyalty, 53%, than Bud (42%) and Bud Light (36%).

3. How did MMBC create such a strong brand?

c. MMBC created a strong brand by presenting its product as quality, independently/locally produced (vs. mass produced), authentic, and positioned itself directly with blue-collar older demos, which embraced it and have held on to it. This also has helped the MMBC brand be known by other, non-targeted, demos as they identify MMBC with their parents/grandparents. A side- group is the hipsters, who are attracted to “retro” items.

4. Why is MMBC now experiencing a decline despite its strong brand?

d. Changes in beer consumption, moving towards light beer, have changed who is now consuming beer. Beer sales have also decreased, as wine sales and other drinks have increased, perhaps given health concerns. MMBC, while embracing its local roots, is limited by them as bigger, multi-national breweries dominate the beer market. These companies have...