Mountain Man Beer Company
MEMORANDUM
To: Chris Prangel
From: 001-84-1544
Date: March 4, 2013
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Subject: Bringing the Brand to Light
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Mr. Prangel as we all know Mountain Man Beer Company has been in the market over eight decades; manufacturing a beer known for its authenticity, quality and toughness. In all these years we have seen many regional breweries vanished by fatal decisions. Mountain Man Beer Company is still standing strong in the market, yet it has come the time to make a crucial decision regarding the future of our company. Before I present my recommendation I would like you to know that I am well aware of your father’s words when he talks about the company, when he says that “Mountain Man is still standing because we manufacture and exceptional beer with a great brand name, we have never lost sight of our core customer, and we have never been seduced by the other guy’s market”. Unfortunately due to changes in beer drinkers’ preferences and declines in sales for the first year, we need to consider different options to compensate for potential declines in sales in the coming years.
Despite all our efforts to build brand equity in 2005 Mountain Man Lager Beer’s sales have declined for the first time in the history of the company by 2%, which could continue on the following years if no action is taken. On the other hand the Light Beer category, in which we have to presence at all, has been steadily gaining market share at a compound annual rate of 4% per year in the past 5 years. Light beer’s market share accounted for 50.4% of volume sales in 2005. At this point we have two different options from which we can pick from with their pros and cons. The first strategy would be to keep doing what we are doing focusing on our core consumers, maintaining our company as a single product company. The second strategy, and the one I am recommending after looking at the industry’s
To: Chris Prangel
From: 001-84-1544
Date: March 4, 2013
-------------------------------------------------
Subject: Bringing the Brand to Light
-------------------------------------------------
Mr. Prangel as we all know Mountain Man Beer Company has been in the market over eight decades; manufacturing a beer known for its authenticity, quality and toughness. In all these years we have seen many regional breweries vanished by fatal decisions. Mountain Man Beer Company is still standing strong in the market, yet it has come the time to make a crucial decision regarding the future of our company. Before I present my recommendation I would like you to know that I am well aware of your father’s words when he talks about the company, when he says that “Mountain Man is still standing because we manufacture and exceptional beer with a great brand name, we have never lost sight of our core customer, and we have never been seduced by the other guy’s market”. Unfortunately due to changes in beer drinkers’ preferences and declines in sales for the first year, we need to consider different options to compensate for potential declines in sales in the coming years.
Despite all our efforts to build brand equity in 2005 Mountain Man Lager Beer’s sales have declined for the first time in the history of the company by 2%, which could continue on the following years if no action is taken. On the other hand the Light Beer category, in which we have to presence at all, has been steadily gaining market share at a compound annual rate of 4% per year in the past 5 years. Light beer’s market share accounted for 50.4% of volume sales in 2005. At this point we have two different options from which we can pick from with their pros and cons. The first strategy would be to keep doing what we are doing focusing on our core consumers, maintaining our company as a single product company. The second strategy, and the one I am recommending after looking at the industry’s