Presented to : Dr. Naresh Patel Professor , Marketing Management. Presented by Saumil Trivedi Aman Hegde Rahul Parekh Rutvij Rajput Case at glance Scope of study Introduction of company Product profile Scope of study Study of new product launch of same brand Scenario of beer company in competitive market Reasons of declining sales of company Target market of product in particular area Brief idea about beer Ingredients : malted barley, hops, cassava than adding water in Introduction of company Mountain man beer company was founded in 1925 by Guntar Prangel and is known as West Virgina’s Beer Chris Prangel joined company in 2006 after retirement of Oscar prangel Company facing declining sales very first time upto now Chris wanted to launch light beer with same brand MMBC held top market for 50 years in most states where beer was sold Product profile Beer’s dark colour, packaged in a brown bottle, with it’s original 1925 design of a crew of coal miners printed on front MMBC’s beer was bitter flavor & slightly higher than avg. alcohol Price was similar to premium domestic brand such as Miller and Budweiser Price was $2.25 for a ounce in bar and $ 4.99 for a six pack in convenience store Drinkers were blue collar and middle to lower income Competitors Major domestic producers : Anheuser busch, Miller Brewing company, Adolf coors company having 74% shipment in MMBC’s region Second tier domestic producer Pabst Brewing Company and Genessee and having 12.5% shipment Import beer companies served who desired more flavorful, bitter tasting . And control 12 % of region market The craft beer industry divided into 4 markets : brewpubs, microbreweries, contract breweries and regional breweries Achievements In 2005 won best beer in west virgina for 8th time consecutively Selected as “America’s championship lager” Problems U.S per capita consumption had decline by 2.3% due to competition, increase in federal excise tax, encouragement of moderation and personal responsibility and health concerns
In 2005 mountain man’s revenue down 2% prior fiscal year
Legal issue in west Virginia repealed arcane law because
of competition which give limitation the promotion of beer Cont… As result retail store selling at very big discount
Distributors become more discriminating about
carrying which brand give them turnover
Limited finance abstain them to expand geographically
They are loosing their target market by other beverages
Target market Age : 21 to 27 As per income : up to $74.9k Middle to lower class Not loyal to any beer brand and will purchase on taste and price Competitive advantage In limited geographic region the company can expand with very less risk and less finance
The company can target new market segment because
of brand reputation and very long experience
Light beer was newer, fast growing product category
and only making consistent growth Cont.. Customer are loyal in using the mountain man beer and having a great market 4 A’s in marketing Affordability Companies should design product in such a way that it reaches the customer at affordable price Availability Companies should go at all area of market in particular region Awareness The company has very good brand awareness so it will be easy to enter in new segment Cont.. Acceptability The customer are using premium brand and it is target of new product in same brand Distribution strategy Instead of taking sales force to any agency company can direct sell it to retailers MMBC can give some amount of more commission to retailer for selling product MMBC can update its bottle after some time to continue its brand name It can open its own small shops where all type of beer can be available Advertising It is very expensive for MMBC to give advertisement in all the area that is mass communication But giving ads in local news paper as well as some magazine MMBC can take some sponsorship to any sports team which is famous in that region