Situation As you know, Mountain Man Brewing Company (MMBC) is a local craft brewing and distribution company based in West Virginia. Its signature product, Mountain Man lager, has a distinctive bitter taste. It is a product that has garnered the company regional acclaim, 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 tenacity. In 2005, Mountain Man generated revenue of $50 million, selling 520,000 barrels. That said, changes in the market have affected MMBC's capital. MMBC is experiencing declining revenue and market share. It is essential to analyze and examine the possible strategy of introducing a “light” beer into MMBC's product line to regain market share. Given the decline in sales over the past year, a strategic analysis is necessary. As illustrated, the two options are either to introduce a light beer, or to continue with the current strategy and hope that the company remains profitable. Light beer is becoming increasingly popular across the country, a nation that is becoming increasingly health-conscious and looking for new ways to indulge without the attendant side effects. Sales of light beer are growing at an annual rate of 4% per year, while sales of premium beer have declined by 4%. Light beers had already gained 50.4% of total beer sales, and Mountain Man was not seizing this market opportunity. On the other hand, MMB had built its reputation based on selling premium beer to a target market. Therefore, the introduction of lager could impact the company's image and reputation. Also, ...... middle of paper ...... rand name. The only way to overcome the fear of failure is to produce a good quality product. Therefore, MMBC can begin to penetrate a new market; while remaining true to the core business model that has kept them as one of the long-standing breweries in the East. Light beer is mainly consumed by the younger population, accounting for 27% of beer consumption. This situation can help MMBC due to the constant change in preferences among younger men and women that have not determined a preferred beer brand.. With proper techniques, Mountain Man Light can establish a small foothold in the light beer industry. While there are well-established light beers on the market, Mountain Man Light can benefit from the 4% growth in the light beer industry. Therefore, for MMBC to remain profitable, the risk of market penetration becoming saturated must be considered.
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