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FINDINGS, ANALYSIS AND RECOMMENDATION ON THE MOUNTAIN MAN'S CASE PREAMBLE Based on our understanding on the case, we discovered that there we 3 astiots from which MMBC can choose The first option is to introduce light beer under Mountain Man Brand name the under listed will be an advantage to the company for this option: 1. Gain more opportunity in the fast-growing category. MMBC may has a 0.25% yearly growth it. Expand customer groups amongst the young consumers and women II. Gain share in onpromise locations iv. A chance to establish brand awareness among young cudemes and give larger a lift However, MMBC will have to consider the following disadvantages if it decides to introduce light beer under Mountain Man Brand name: I. Add burden to the cost structure, more inventory, packaging the SG&A (5900,000) til. May alienate the core customer base and crode brand equity. i. Light will occupy the facing of Lager, therefore, lager has a potential of losing revenue iv. Faced with fierce intensive marketing fee. . Cos will increase to $1.650,000, keeping price at 97 con may decrease profit margin The second option is to introduce light beer under different brand name. with this, we foresee the following advantages Increase the revenue due to the growth of selling light beer ii. Low advertising costs ii, They can cater untapped market under a new name This option may as well bring about the disadvantages listed below 1. Product cannibalization. It will be hard to combine the new product with the old one. ii. Brand crosion Loss of core customers The third option for MMBC is to not introduce light beer. Linder this option, because there is no action to improve the business and the traditional market is going down, MMBC will keep losing yearly 2% of its revenue in the future. It will be hard to keep the company profitable, which may eventually lead to winding up of the business FINDINGS The potential growth for Mountain Man in Light Beer market is 0.25% cach year, and market for Light beer is 18.7 million barrels. Because MMBC only has one type of beer, it is hard to compete with the other competitors. People always prefer new entrants in the market. A new product could be a way to get some of old customers back and attract new customers Therefore, the suggestion is to expand the product line. Besides the lager beer that satisfies current customers, the company needs to release light beer to attract young customers to be able to increase the market occupation and increase the revenue It is important to give a SWOT analysis of MMBC as we see it as a clue to know the direction of the company; however, below is the SWOT Analysis of the MMBC. Strengths Weaknesses S W Opportunities Threats towards comary boond to coba con copery T BREAK-EVEN ANALYSIS As per our calculation (see below) assume the profit margin is $25.38 (597-871.62). In 2006 we need about 48,735 barrels sales of light and a sale of 101,369 barrels in 2007. In either case or perhaps in worse scenario, the production is expected to cover all its investment cost and become profitable after 2007 RECOMMENDATION FINDINGS, ANALYSIS AND RECOMMENDATION ON THE MOUNTAIN MAN'S CASE PREAMBLE Based on our understanding on the case, we discovered that there we 3 astiots from which MMBC can choose The first option is to introduce light beer under Mountain Man Brand name the under listed will be an advantage to the company for this option: 1. Gain more opportunity in the fast-growing category. MMBC may has a 0.25% yearly growth it. Expand customer groups amongst the young consumers and women II. Gain share in onpromise locations iv. A chance to establish brand awareness among young cudemes and give larger a lift However, MMBC will have to consider the following disadvantages if it decides to introduce light beer under Mountain Man Brand name: I. Add burden to the cost structure, more inventory, packaging the SG&A (5900,000) til. May alienate the core customer base and crode brand equity. i. Light will occupy the facing of Lager, therefore, lager has a potential of losing revenue iv. Faced with fierce intensive marketing fee. . Cos will increase to $1.650,000, keeping price at 97 con may decrease profit margin The second option is to introduce light beer under different brand name. with this, we foresee the following advantages Increase the revenue due to the growth of selling light beer ii. Low advertising costs ii, They can cater untapped market under a new name This option may as well bring about the disadvantages listed below 1. Product cannibalization. It will be hard to combine the new product with the old one. ii. Brand crosion Loss of core customers The third option for MMBC is to not introduce light beer. Linder this option, because there is no action to improve the business and the traditional market is going down, MMBC will keep losing yearly 2% of its revenue in the future. It will be hard to keep the company profitable, which may eventually lead to winding up of the business FINDINGS The potential growth for Mountain Man in Light Beer market is 0.25% cach year, and market for Light beer is 18.7 million barrels. Because MMBC only has one type of beer, it is hard to compete with the other competitors. People always prefer new entrants in the market. A new product could be a way to get some of old customers back and attract new customers Therefore, the suggestion is to expand the product line. Besides the lager beer that satisfies current customers, the company needs to release light beer to attract young customers to be able to increase the market occupation and increase the revenue It is important to give a SWOT analysis of MMBC as we see it as a clue to know the direction of the company; however, below is the SWOT Analysis of the MMBC. Strengths Weaknesses S W Opportunities Threats towards comary boond to coba con copery T BREAK-EVEN ANALYSIS As per our calculation (see below) assume the profit margin is $25.38 (597-871.62). In 2006 we need about 48,735 barrels sales of light and a sale of 101,369 barrels in 2007. In either case or perhaps in worse scenario, the production is expected to cover all its investment cost and become profitable after 2007 RECOMMENDATION FINDINGS, ANALYSIS AND RECOMMENDATION ON THE MOUNTAIN MAN'S CASE PREAMBLE Based on our understanding on the case, we discovered that there we 3 astiots from which MMBC can choose The first option is to introduce light beer under Mountain Man Brand name the under listed will be an advantage to the company for this option: 1. Gain more opportunity in the fast-growing category. MMBC may has a 0.25% yearly growth it. Expand customer groups amongst the young consumers and women II. Gain share in onpromise locations iv. A chance to establish brand awareness among young cudemes and give larger a lift However, MMBC will have to consider the following disadvantages if it decides to introduce light beer under Mountain Man Brand name: I. Add burden to the cost structure, more inventory, packaging the SG&A (5900,000) til. May alienate the core customer base and crode brand equity. i. Light will occupy the facing of Lager, therefore, lager has a potential of losing revenue iv. Faced with fierce intensive marketing fee. . Cos will increase to $1.650,000, keeping price at 97 con may decrease profit margin The second option is to introduce light beer under different brand name. with this, we foresee the following advantages Increase the revenue due to the growth of selling light beer ii. Low advertising costs ii, They can cater untapped market under a new name This option may as well bring about the disadvantages listed below 1. Product cannibalization. It will be hard to combine the new product with the old one. ii. Brand crosion Loss of core customers The third option for MMBC is to not introduce light beer. Linder this option, because there is no action to improve the business and the traditional market is going down, MMBC will keep losing yearly 2% of its revenue in the future. It will be hard to keep the company profitable, which may eventually lead to winding up of the business FINDINGS The potential growth for Mountain Man in Light Beer market is 0.25% cach year, and market for Light beer is 18.7 million barrels. Because MMBC only has one type of beer, it is hard to compete with the other competitors. People always prefer new entrants in the market. A new product could be a way to get some of old customers back and attract new customers Therefore, the suggestion is to expand the product line. Besides the lager beer that satisfies current customers, the company needs to release light beer to attract young customers to be able to increase the market occupation and increase the revenue It is important to give a SWOT analysis of MMBC as we see it as a clue to know the direction of the company; however, below is the SWOT Analysis of the MMBC. Strengths Weaknesses S W Opportunities Threats towards comary boond to coba con copery T BREAK-EVEN ANALYSIS As per our calculation (see below) assume the profit margin is $25.38 (597-871.62). In 2006 we need about 48,735 barrels sales of light and a sale of 101,369 barrels in 2007. In either case or perhaps in worse scenario, the production is expected to cover all its investment cost and become profitable after 2007 RECOMMENDATION FINDINGS, ANALYSIS AND RECOMMENDATION ON THE MOUNTAIN MAN'S CASE PREAMBLE Based on our understanding on the case, we discovered that there we 3 astiots from which MMBC can choose The first option is to introduce light beer under Mountain Man Brand name the under listed will be an advantage to the company for this option: 1. Gain more opportunity in the fast-growing category. MMBC may has a 0.25% yearly growth it. Expand customer groups amongst the young consumers and women II. Gain share in onpromise locations iv. A chance to establish brand awareness among young cudemes and give larger a lift However, MMBC will have to consider the following disadvantages if it decides to introduce light beer under Mountain Man Brand name: I. Add burden to the cost structure, more inventory, packaging the SG&A (5900,000) til. May alienate the core customer base and crode brand equity. i. Light will occupy the facing of Lager, therefore, lager has a potential of losing revenue iv. Faced with fierce intensive marketing fee. . Cos will increase to $1.650,000, keeping price at 97 con may decrease profit margin The second option is to introduce light beer under different brand name. with this, we foresee the following advantages Increase the revenue due to the growth of selling light beer ii. Low advertising costs ii, They can cater untapped market under a new name This option may as well bring about the disadvantages listed below 1. Product cannibalization. It will be hard to combine the new product with the old one. ii. Brand crosion Loss of core customers The third option for MMBC is to not introduce light beer. Linder this option, because there is no action to improve the business and the traditional market is going down, MMBC will keep losing yearly 2% of its revenue in the future. It will be hard to keep the company profitable, which may eventually lead to winding up of the business FINDINGS The potential growth for Mountain Man in Light Beer market is 0.25% cach year, and market for Light beer is 18.7 million barrels. Because MMBC only has one type of beer, it is hard to compete with the other competitors. People always prefer new entrants in the market. A new product could be a way to get some of old customers back and attract new customers Therefore, the suggestion is to expand the product line. Besides the lager beer that satisfies current customers, the company needs to release light beer to attract young customers to be able to increase the market occupation and increase the revenue It is important to give a SWOT analysis of MMBC as we see it as a clue to know the direction of the company; however, below is the SWOT Analysis of the MMBC. Strengths Weaknesses S W Opportunities Threats towards comary boond to coba con copery T BREAK-EVEN ANALYSIS As per our calculation (see below) assume the profit margin is $25.38 (597-871.62). In 2006 we need about 48,735 barrels sales of light and a sale of 101,369 barrels in 2007. In either case or perhaps in worse scenario, the production is expected to cover all its investment cost and become profitable after 2007 RECOMMENDATION