| | | Study of Mountain Man Brewing Case |
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By the year 2005, the barrels that mountain man lager sold were well over 520,000 barrels. This translates to the brand receiving revenue of slightly above $50 million. The beer also holds a respectable market share and a top market position in West Virginia for a period of 50 years and also the states it is distributed in. the revenues recorded however were 2% less than the revenues that had been received in the previous year. But despite this decrement, the company still managed to register profits. The company is also experiencing trouble trying to maintain its own sales in the premium beers segment due to increased competition from the larger companies. But due to the increasing changes in the demographics of the drinkers’ alcohol consumption. The young drinkers who are between the ages of 21 – 27 years are spending twice as much on alcohol that those aged over 35 years. The company’s profitability in the next five years may increase. This is because the young consumers are the working class division and they are the target consumers for the beer. So by 2010, the drink may have regained its status in the market share and hence an increase in the profits.
MMBC has used its brand supremacy to influence consumer buying traits. Their brand has played the most significant part in the decisions they make while purchasing beer. Some of the deliberations that customers make when selecting their preferred beer are based upon; the beer’s taste, the pricing strategy that is being used, the event that is being celebrated, recognition of the brands quality, and the supremacy of the brand. The pricing used by MMBC is not so high and is thus affordable comparing to its quality. MMBC is dependent on its past glory and status of being viewed as an independent family brewery company to