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Essay / Mountain Men Brewing Company (MMBC) Solution for...
SituationAs you know, Mountain Man Brewing Company (MMBC) is a local craft brewing and distribution company located in West Virginia. Its flagship product, Mountain Man lager, features a distinctive bitter taste. It is a product that has earned the company regional recognition, a loyal customer base and numerous awards. This company has developed a brand image and reputation among blue-collar and middle-aged men, while maintaining the unique and authentic family business model based on quality and robustness. In 2005, Mountain Man generated revenues of $50 million and sold 520,000 barrels. That said, changes in the market have affected MMBC's capital. MMBC is experiencing a decline in revenue and market share. It is essential to analyze and examine the possible strategy of introducing a "light" beer into MMBC's product line in order to regain market share. Given the decline in sales over the past year, a strategic analysis is required. As illustrated, the two options are to either introduce a light beer or continue with the current strategy and hope the business remains profitable. Light beer is growing in popularity across the country, as an increasingly health-conscious nation seeks new ways to indulge without the side effects that come with it. Sales of light beer are growing at an annual rate of 4%, while sales of premium beer are down 4%. Light beers had already gained 50.4% of total beer sales and Mountain Man was not capturing this market opportunity. On the other hand, MMB had built its reputation on selling premium beer to a target market. Therefore, the introduction of light beer could affect the company's image and reputation. Also, ...... middle of paper ...... brand name. The only way to overcome the fear of failure is to produce a good quality product. Therefore, MMBC can begin to enter a new market; while remaining true to the core business model that has made it one of the longest-running breweries in the East. Light beer is mainly consumed by the younger population, accounting for 27% of beer consumption. This situation may help MMBC due to the ever-changing preferences of young men and women who have not determined their favorite beer brand. With proper techniques, Mountain Man Light can gain a small foothold in the light beer industry. Although there are well-established light beers in the market, Mountain Man Light can benefit from the 4% growth in the light beer sector. Therefore, for MMBC to remain profitable, it must take into account the risk of market penetration becoming saturated..