calculation. The loss of sales of premium beer to the new light beer market is estimated between 5 and 20%. The analysis shown in Exhibit 6B shows possible cannibalization in a best (5%) and worst (20%) case scenario. In both scenarios, the Mountain Man Light product proves to be a favorable addition to MMBC’s declining income statement. With MMBC selling 70% of its product to off premise locations, there is a certain risk that these suppliers would buy the same volume from MMBC, just distributed
Words: 339 - Pages: 2
Case Analysis Mountain Man Brewing Company Case Analysis Mountain Man Brewing Company Executive Summary Started in the year 1925 by Guntar Prangel Mountain Man Brewing Company (MMBC) was a well-entrenched company in the East Central US by 1960. Consecutively the company grew as a legacy brewery, gathering a very strong brand loyalty and positioning. Known for the authenticity, quality and taste the company grew out to be a market leader in the currently matured business. However, off late
Words: 2390 - Pages: 10
Mountain Man Brewing Company (MMBC) is a single product brewing and local distribution company based in West Virginia. It was founded by Guntar Prangel who reformulated an old family brew recipe, resulting in a flavorful bitter tasting beer that was launched as Mountain Man Lager or West Virginia Beer. This signature product went on to claim a reputable market share for an independent family owned brewery, in the East Central region of United State by 1960s.The company developed a brand image and
Words: 276 - Pages: 2
Mountain Man Brewing Company’s Positioning in the East Central Market According to Alvin J. Silk, a positioning statement is designed to define who are a company’s customers, what set of needs does the product fulfill, and why is the product the best one to fill those needs (2006, p. 90). I found this question challenging because a positioning statement should define “the place the firm wishes to occupy in its’ target customers’ minds” (Silk, 2006, p. 90). In the case of MMBC, the definition of
Words: 2374 - Pages: 10
Cannibalization Calculations 12 Exhibit 5 – MM Light Marketing Strategy 15 What is the current situation? Mountain Man Brewing Company (MMBC) is a family business founded in West Virginia in 1925 by Guntar Prangel. The company is now operated by Guntar’s grandson, Oscar. Oscar’s son, Chris, is slated to inherit the business in five years when his father retires. Mountain Man (MM) Lager is the flagship product and the only beer currently produced by the company. The recipe for the lager was
Words: 3340 - Pages: 14
Mountain Man Brewing Company Case Analaysis Recommendation: Mountain Man Brewing should create a new market strategy and introduce a line extension of Light Beer to expand their portfolio and create new sales among non-existing customers. This line extension will target the younger drinkers and women in the East Central Region and will increase sales and create profit within 2 years. Rationale: 1. Light beer sales will be profitable within 2 years. The first year MMBC will lose $486
Words: 363 - Pages: 2
Recommendation: Mountain Man Brewing should create a new market strategy and introduce a line extension of Light Beer to expand their portfolio and create new sales among non-existing customers. This line extension will target the younger drinkers and women in the East Central Region and will increase sales and create profit within 2 years. Rationale: 1. Light beer sales will be profitable within 2 years. The first year MMBC will lose $486,374. However, in 2007, the second year, MMBC
Words: 1066 - Pages: 5
The Entrepreneurs at Twitter: Building a Brand, a Social Tool or a Tech Powerhouse? MID-TERM ASSIGNMENT A Paper Presented in Partial Fulfillment of the Requirements of the Robert Kennedy College MBA Course Nr. 57582 - Entrepreneurship Prof. Francois Therin October 27, 2010 1 Declaration of originality of work I affirm that the attached work is entirely my own, except where the words or ideas of other writers are specifically acknowledged according to accepted citation conventions. This assignment
Words: 2831 - Pages: 12
Managerial Analysis Mountain Man Brewing Company Goes “Light” 12/13/2010 Mountain Man Brewing Company Nicole Fiamingo Company History Mountain Man Brewing Company was established in 1925, and since then has come to be known as “West Virginia’s Beer”. In 2005, despite a 2% drop in annual sales they sold approximately 520,000 barrels and reported revenue close to $50,000,000. Mountain Man Brewing Company’s average consumer is male, above the age of 45 and typically in the middle-to-lower
Words: 1394 - Pages: 6
Decision to be made Mountain Man Brewing Company is a family owned business that brewed one beer, Mountain Man Lager, also known as “West Virginia's beer”. Mountain Man Lager held the top position among lagers in West Virgina for almost 50 years and had respectable market share in most states. The company over the years relied on its history and its status as an independent, family owned brewery to create an aura of authencity and position the beer with its core drinker – blue collar, middle to
Words: 1368 - Pages: 6
