mountain man
Rochester Institute of Technology |
Mountain Man Brewing Company: Bringing the Brand to Light |
Advanced Corporate Financial Planning |
Professor Testa 1/23/2012 |
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Objective
Complete a NPV analysis to see if Mountain Man Brewing Company should implement Mountain Man Light to its existing product lines:
* SWOT Analysis on Mountain Man Lager
* NPV analysis for Mountain Man Lager
* NPV analysis for Mountain Man Light
* NPV analysis on whole company
* Strategic Options
Background
Guntar Prangel founded the Mountain Man Beer Company (MMBC) in 1925. Mr. Prangel had reformulated an old family brew recipe using a meticulous selection of rare, Bavarian hops and unusual strains of barley, resulting in flavorful, bitter-tasting beer which the Prangel family launched as Mountain Man Lager. By the 1960s, Mountain Man Lager’s reputation as a quality beer was well entrenched throughout the East Coast region of the United States.
It was February 20, 2006, in the New River coal region of West Virginia. Chris Prangel, a recent MBA graduate, had returned home a year earlier to manage the marketing operations of the Mountain Man Beer Company, a family owned business he stood to inherit in five years, when his father Oscar Prangel, the president and owner, retired. Mountain Man brewed one beer, Mountain Man Lager, also known as “West Virginia’s beer.”
Due to changes in beer drinkers’ preferences, the company was now experiencing declining sales for the first time in the company’s history. In response, Chris wanted to launch Mountain man Light, a “light beer” formulation of Mountain Man Lager, in the hope of attracting younger drinkers to the brand. Over the previous six years, light beer sales in the United States had been growing at a compound annual rate of 4%, while traditional premium beer sales had declined annually by the same percentage.
Chris looked at some revenue and net profit projections he had developed to 2010 assuming that Mountain
Mountain Man Brewing Company: Bringing the Brand to Light |
Advanced Corporate Financial Planning |
Professor Testa 1/23/2012 |
|
|
Objective
Complete a NPV analysis to see if Mountain Man Brewing Company should implement Mountain Man Light to its existing product lines:
* SWOT Analysis on Mountain Man Lager
* NPV analysis for Mountain Man Lager
* NPV analysis for Mountain Man Light
* NPV analysis on whole company
* Strategic Options
Background
Guntar Prangel founded the Mountain Man Beer Company (MMBC) in 1925. Mr. Prangel had reformulated an old family brew recipe using a meticulous selection of rare, Bavarian hops and unusual strains of barley, resulting in flavorful, bitter-tasting beer which the Prangel family launched as Mountain Man Lager. By the 1960s, Mountain Man Lager’s reputation as a quality beer was well entrenched throughout the East Coast region of the United States.
It was February 20, 2006, in the New River coal region of West Virginia. Chris Prangel, a recent MBA graduate, had returned home a year earlier to manage the marketing operations of the Mountain Man Beer Company, a family owned business he stood to inherit in five years, when his father Oscar Prangel, the president and owner, retired. Mountain Man brewed one beer, Mountain Man Lager, also known as “West Virginia’s beer.”
Due to changes in beer drinkers’ preferences, the company was now experiencing declining sales for the first time in the company’s history. In response, Chris wanted to launch Mountain man Light, a “light beer” formulation of Mountain Man Lager, in the hope of attracting younger drinkers to the brand. Over the previous six years, light beer sales in the United States had been growing at a compound annual rate of 4%, while traditional premium beer sales had declined annually by the same percentage.
Chris looked at some revenue and net profit projections he had developed to 2010 assuming that Mountain