Mountain Man

1223 Words Nov 2nd, 2011 5 Pages
1a. What is Chris considering doing and what factors will he have to align to be successful?
Chris is considering the production of a light beer for Mountain Man Brewing Company as a way to compensate for the recent decline in sales and increase in the market for light beer sales. How can the production of a light beer appeal to a younger demographic. What about their light beer will be different from competitors. How much is this new product going to cost and how will he go about launching the new product. How long is it going to take before the company begins to break even and then make a profit?

1b. What goals should MMBC(Chris) have?
Chris should find ways the increase the revenue of the company without taking away from the Mountain
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Major competitors in light beer are Anheuser Busch, Miller Brewing, and Adolf Coors, representing 74% of beer shipments in Mountain Man’s region.

4c. What is the likely future of competitive brewers? What is MMBC's market/competitive position?
Mountain Man has its own identity. It is a family owned business and its product packaging reflects the image created for its lager. The company focuses on producing a quality products and identifying the product with its consumers. Its consumers remain loyal to the product.

5. Should MMBC introduce a light beer?
They should definitely introduce a light beer. This would allow the company to gain younger consumer as well as females who are more apt to drink like beer.

5a. What are pros and cons for doing so?
PROS -By introducing a light beer the company will gain a younger demographic that has yet to establish a brand loyalty. Younger consumers are also big spenders and consumer representing 27% of total beer consumption and still growing. The introduction of a light beer may also increase awareness and consumption of Mountain Man Lager.
Cons- It will cost the company $4.69 more per barrel to produce a light beer. There is no guarantee the new product will be a success. It could possible hurt the brand name.

6. Is mountain Man Light feasible for MMBC? Mountain man light may not be the best choice for naming its light beer because its loyal customer base may fell they are straying from what the brand

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