Mountain Man has sustained its brand throughout the years as the best tasting beer for the workingman since the 1920s. However, a lot has changed since then; women have entered the workforce and have gained more equal rights; while younger generations are more vocal and engaged. These changes in society although external to MM (Mountain Man) affect its position and competitive advantage. As the market has been analyzed, competitors of MM have engaged in a new relatively new market, Light Beer, which has tapped into the needs of the revolutionized society.

Entering into the light beer market for MM would be our recommendation based on the assumptions that market share of MM beer would decrease by 2% per year while there is an increase in market growth of light beers at 4% per year. The potential decrease in the regular beer market size would have a significant effect on revenues over the span of five years. By introducing MM Light beer, the decrease in market size could be offset by the positive trend in the light beer market to ensure steady revenue growth. In addition, a new segment of light beer drinkers including women and a younger demographic would be exposed to the brand. Establishing strong brand awareness around the introduction of a light version of MM brands could create a new generation of loyal customers. Further, the introduction of the light beer marketed to this new target audience would result in an increase in “on-premise sales” such as restaurants and bars.

The consequences of entering the light beer market for MM will be costly. This will be due to the increased barrel cost and first year expenditures such as the $750 thousand marketing budget. In addition, the loss of retail shelf space may be an obstacle. Yet, with the trend showing a continual growth in the light beer market, it is a greater risk not to make the investment. Finally,