This report provides a brief analysis of the implications for Mountain Man Brewing Company (MMBC) to expand the products from its existing product, Mountain Man Lager to a new Light beer.
Marketing reasons of MMBC’s success
MMBC is an old middle-size brewing company in the West Virginia which was established in 1925. The marketing reasons why MMBC successful are based on the 4Ps as below :
The company focused on one product only which is a bitter-tasting flavour beer with above average alcohol content, i.e. the Mountain Man Lager.
The price of MM Lager was similar to other premium brands and lower than specialty brands.
As most of their core consumers purchased 60% of the beer from the off-premise channels and MM Lager utilized these channels for promotion. MMBC has to stay the competitive advantage by focusing their sales force on the blue-collar men through off-premise locations. The large market they served that helped MMBC compete with major domestic premium brands.
Mountain Man Lager is packaged in a brown bottle with their original label design since 1925. The brand was well developed and recognized over its market relied on the grass-roots marketing strategies by using the word of mouth to spread its quality and the bitter taste.
Focus on single segment
MM Lager has been focusing on the single segment, which is blue collar men and in the middle-to-low income level over the age of 45, they paid more effort for deep penetration to enhance the loyalty in this demographic segment.
The company used their long history and status as an independent family-owned and regional brewery to create an aura of authenticity of their brand. MM Lager is distinguishable from competitors due to the brand recognition as West Virginia’s beer. MM Lager also had a high perception of quality and brand loyalty. MMBC won some awards in 2005, i.e. it won the “Best Beer in West Virginia” for the 8th year in a row; and won “America’s Championship Lager” at the American Beer Championship.
Segmentation of MMBC’s market
The segment of two alcohol drinks, premium beer and light beer in MMBC’s market are:
The Premium Beer – Mountain Man Lager
A bitter-tasting flavor beer with above average alcohol content which target customers are the hard working blue-collars, middle-to-lower income men over age 45.
The blue-collars prefer the bitter flavor and higher alcohol content beer due to the heavy drinking preference; they feel that the taste of the standard alcohol content beer was not strong enough.
MM Lager was recognized as “toughness” and “strong working man” beer image in the market, customers feel they are a tough and strong working man when they drink it. Drinking in the workplace was a normal culture of blue-collar, they served to improve the social relationships and reduce dissatisfaction.
The Light Beer – Mountain Man Light
The lower than average alcohol content of...