Mountain Man Brewing Company- Bringing the Brand to light

Mountai
n Man
Brewing
December 2
Compan
y-
Bringing 2009
the
Brand to
light
Submitted
This Document is a case analysis of the case of Mountain Man by-Mradul
Brewing Company. The document is about dilemma of
Mountain Man Management, option available and strategies Raj Pachouri
that are suggested for resolving the dilemma. 08BS000179
4

Brand Management Case Analysis Section B

Mradul Raj Pachouri 08BS0001794
 Mountain Man Brewing Company- Bringing the Brand to light

T urn around Management is not a very simple thing to do. It needs different Intellect,

Powerful Strategies, Great insights, and above these Successful Implementation of all the
decisions & strategy. American Beer Industry itself is a symbol of oligopoly where few brand
with their different variants trying to capture new market as well as on the same time retaining
the older ones. Mountain Man Brewing Company (MMBC) also known as “West Virginia’s
Beer, a symbol of toughness, Authenticity, quality and uniqueness. First time ever in the
history, Company is facing drop in sell which makes the management sweat a bit. The reason
is the changing taste and preferences of the American customers. This Industry is going for
Lager to light demand shift as strong beer consumers are vanishing with time whereas young
generation segment is increasing and their choice is Light. The case is very interesting where
company is finding itself in a junction from where they have to take a decision which is very
critical for the survival in this rapid changing hypercompetitive marketing.

Companies like Mountain Man Lager which has a strong association with blue collar, Middle to
Lower Income men over age 45. These are the core drinker for MMBC which are very much
loyal over the long period. They are loyal for such a strong drink due to many reasons like
taste, toughness and availability. Now company is worried about Brand Equity if they will go
for a growing beer sector which is Light.

MMBC Management- Reasons for Dilemma

Light segment beer segment which is growing at a very fast pace?
e Mountain Man (Umbrella Branding)/New Name (Private labeling, New Product
s then what will be strategy to enter in this segment if entered?

Brand Management Case Analysis Section B

Mradul Raj Pachouri 08BS0001794
Mountain Man Brewing Company- Bringing the Brand to light

Let’s try to answer these questions one by one

1. YES- I think change is the only thing that is permanent. Everything moves from
manufacturer to Consumer end. So its important that only those things will be produced
which are needed by the consumer. We are not saying to just close down the
production of its current operations and go for a new light version. We are saying
company needs a gradual change from lager to Light over the period of time. Because
its need of the hour. When we can see the four percent compound growth in this new
segment and on the same time we can see the same decline in lager consumption. It is
time to take the necessary steps. Because either you have to change with changing
needs of customer or you will be thrown out of the market.
2. The Main Dilemma starts with the question if yes then with what name. There are two options,
one is going by a Brand Extension Mountain Man Light or other is going by a name XYZ or
Private Labeling. Brand extension by using Umbrella branding is generally a very good option
for reaping the benefit from your brand equity provided it doesn’t create brand confusion and
brand conflict.
Now let’s try to know pros and con if we use Brand extension (umbrella Branding) for a
successful Product.
Advantages
a. Identify logical new product possibilities.
b. Capitalize on the paid-for equity in established brand names.
c. Enable a company to enter new categories at significantly lower cost.
d. Reduce the risk of failure given the already established awareness and trust.
e. Create a positive synergistic effect with the efficiencies of umbrella branding and
advertising.
f. Reinforce the consumers’ perceptions of the parent brand name.
g. Bring news to existing brands when there is otherwise nothing new to say about
them.

Risk - In reality, if a brand extension is so off target or lacks fit and or leverage, it likely
will fail and do little damage. Most of these misfires die in limited test market anyway.
There can be real damage to the parent brand, however, when too many unrelated
brand extensions are launched. Names like Betty Crocker, General Electric and Kraft
have been extended profusely. While they have not lost their awareness as household
words, the strong associations they once had to specific products and related qualities
(e.g. cake mix, light bulbs and cheese) may be diluted. This is especially dangerous
when a brand is used synonymously with a specific product. Brands that are not legally
generic but are used that way such as Kleenex, Scotch (Tape), and Band-Aid should
not be extended broadly or they risk losing this valuable quality.

Brand Management Case Analysis Section B

Mradul Raj Pachouri 08BS0001794
Mountain Man Brewing Company- Bringing the Brand to light

As we know Mountain man is a symbol of toughness which is dearer to the Blue collar
workers if company comes with a name like mountain man light then it will have two
consequences.

a) Loyal customer will think something is changed now. It can create an image that
company has not only diluted the beer but also diluted the image of toughness and
strength. We have a very good example of coca cola. Beverage industry is almost
same people get associated with the brand not the taste. So if company will go with
the same name, there is a huge possibility that it will dilute the brand as well as give
a setback to all MMBC brand loyal customers.
b) Young Generation people know what mountain man is? But they don’t want to make
it a part of their buying behavior due to two reasons. Firstly, they want their separate
identity, separate drink, different from what their father and grandfather drink. They
don’t want to get associated with a brand which is associated with blue collar,
middle to lower income with age of 45 and above and secondly according to them
it’s too tough to handle that beer which can create problem of swings while work to
the fresh drinkers.

So my suggestion is going with a different or slightly modified name or going with a

private labeling can be a good option in this case when you don’t want to put your
present in ultimate risk. Investment for future can only be done by stable revenue in
present.

So putting your core competency in risk is something which is not acceptable. You can
improve or develop new competency with time but that is never suggested to kill your
competency and ditch your brand loyal customers.

1. Strategy that should be adopted for branding a new product Light without diluting core
brand.
Name like Mountain Young can do the trick where people take mountain as zenith or
success which is tough to achieve and young can again fill the color of energy and
enthusiasm.

As we know that if company is going to come up with a new name it will again need
some investments to create the new brand which company is not capable. so they should
go with grass root marketing like better regional campaigns by the help of distributors and
outlets. They have to create a buzz of their new brand by free samples in regional disc
where young people go. They can also go for sponsorship of small regional events like

Brand Management Case Analysis Section B

Mradul Raj Pachouri 08BS0001794
Mountain Man Brewing Company- Bringing the Brand to light
music events and parties. They can also go for music album and all those things to
create a brand which will give them value for their money.

Brand Management Case Analysis Section B

Mradul Raj Pachouri 08BS0001794