Mountain Men Brewing Company (MMBC) Solution for Revenue Decline

Situation

As you are aware, Mountain Man Brewing Company (MMBC) is a craft brewing and local distribution company located in West Virginia. Its signature product, Mountain Man lager, features a distinctive bitter taste. It is a product that has garnered for the company regional acclaim, a loyal customer base, and numerous awards. This company developed a brand image and reputation among the blue collared and middle age men, while maintaining the unique and authentic family business model based on quality and toughness. In 2005 Mountain Man was generating revenues of 50 million dollars, selling 520,000 barrels. That said, changes in the market have affected MMBC capital. MMBC is experiencing a decline in revenue and market share. It is essential to analyzes and examine the possible strategy of introducing a “light” beer into MMBC’s product line in order to recapture market share.

. Given the decrease in sales for the past year, there is a need for a strategic analysis. As illustrated, the two options are either to introduce a light beer, or continue with the current strategy and hope that the company remains profitable. Light beer is growing in popularity throughout the country as a nation that is becoming more health-conscious and looking for new ways to indulge without the attendant side effects. Light beer sales are growing at an annual rate of 4% per year, while sales for premium beer declined by 4%. The light beers had already gained 50.4% of total beer sales and Mountain Man was not capturing this market opportunity. On the other had, MMB had established its reputation based on the sales of premium beer to a target market. Therefore, the introduction of light beer could affect the image and reputation of the company. Also, ...

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...rand name. The only way to overcome the fear of failure is by producing a good quality product. Therefore, MMBC can begin to penetrate a new market; while staying true to the core business model that has kept them as one of the long lasting breweries in the East. Light beer is mostly 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 who have not determined a favorite brand of beer.. With proper techniques, Mountain Man Light can set a small foothold in the light beer industry. Even though there are well-established light beers in the market, Mountain Man Light can benefit from the 4 % growth of the light beer industry. Therefore, in order for MMBC to remain profitable, it needs to consider the risk to penetrate the market becomes saturated.