Preview

Mountain Man Brewing Company

Powerful Essays
Open Document
Open Document
4418 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Mountain Man Brewing Company
|NUS |
|MKT4415B |
|Mountain Man Brewing Company: Bringing the Brand to Light |
| |
|Nur Azlyn bte Mohd Khalid |
|2-Nov-2011 |
|Prepared for: Dr Chng Peng Sim |

|Examining the issue of product development and its cost-benefit analysis |

Table of Contents

1. INTRODUCTION 3 1.1 Defining the Problem …………. 3 1.2 The Beer Industry – East Central Region 4 2. COMPANY ANALYSIS- MMBC 5 2.1 Current Marketing Strategies of MMBC 5 2.2 SWOT Analysis 6 3. MOUNTAIN MAN LIGHT ………… 7 3.1 Reasons for / against Mountain Man Light.................... ……………………………. … 7 3.2 Financial Projections – Status Quo & Brand Erosion Scenarios .…………………….… 8 3.3 Evaluation of Financial Projections – Status Quo & Brand Erosion Scenarios ….…… 10 3.4 Financial Projections – Break-Even Analysis ......………………………………….… 11 3.5 Financial Projections – Net Marketing Contributions Approach …… ….. …………. 12 3.6 Evaluation – Decision For / Against the Launch of Mountain Man

You May Also Find These Documents Helpful

  • Good Essays

    Although the launch of a new product is always going to be a risk, banking on the withering demand for a single offering is surely not going to alter the fortunes of the Mountain Man Beer Company. More importantly, light beer is the largest sales opportunity and it is what the market demands, therefore, to introduce the Mountain Man Light can be a gateway necessary for MMB to attract new customers and expand its market. Here are a series of recommendations offering to the company in order to help it successfully launch the Light beer.…

    • 1023 Words
    • 5 Pages
    Good Essays
  • Good Essays

    The high quality and uniqueness of the ingredients already exist, however customers are buying the beer based off the lower costs. If Coors wants to use differentiation and the same ingredients, they must create a high level of cost parity to ensure high revenues and reduce all costs not directly related to differentiation, such as in severely reducing the number of packaging lines (320). It would be best if Coors condensed their advertising costs and instead focused on producing creative and innovative ads in place of a high quantity. The connections with wholesalers and important customers should be strengthened through public relations and used to promote a luxurious perception of Coors beer. Furthermore, the plans for buying the production plant in Virginia would still be valid, along with the plans for railway and road…

    • 1261 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Joseph, Lou. "Energy Saving Technologies." The Brewer-Garrett Company. N.p., Jan. 2011. Web. 11 Feb. 2015. < http://www.brewer- garrett.com/WhatWeDo /Energy.3]Serv ices/EnergySavingTechnologies.aspx>.…

    • 1076 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    South Dakota Microbrewery

    • 1045 Words
    • 5 Pages

    Overall, South Dakota Microbrewery is a strong company but they do face a few problems that could adversely affect their business in the future. The most obvious problem that SDM faces is the gross margin loss of $39.5 for every batch of Bismark Bock that is sold. Under the plant-wide allocation method, this loss was hidden but after allocating based on activity, this cost becomes a major problem for the company. Without a positive gross margin, the company may…

    • 1045 Words
    • 5 Pages
    Powerful Essays
  • Best Essays

    Bluegrass Brewing Company

    • 3287 Words
    • 14 Pages

    Bluegrass Brewing Company (BBC) is a nationally recognized, American craft beer company, whose mission is to create bold, unique beers, quality affordable food, and serve them both in a warm and comfortable, family friendly atmosphere. Founded in 1993, BBC is Louisville, Kentucky’s oldest micro brewing company, producing just over 2,000 barrels a year. ("Facebook: Bluegrass Brewing, 2012"). Although the company classifies itself as a microbrewery, the Brewers Association would actually classify BBC as a brewpub because they do not sell more than 75% of their beer offsite (Brewers Association, 2012). For the purpose of this paper, we will identify the industry that BBC competes in as the craft beer industry. According to the Brewer’s Association, the craft beer industry is divided into six market segments: microbrewery, brewpub, contract brewing…

    • 3287 Words
    • 14 Pages
    Best Essays
  • Satisfactory Essays

    The Panama Liquor Co.

    • 354 Words
    • 2 Pages

    Problem in marketing Seco in a product differentiation strategy because its higher prices may be outside the young drinker’s price range…

    • 354 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Many of the case analysis in this book contain companies who have been under scrutiny for its ethical behaviors. There are some that provide great examples of how an ethical business should run. Through excellent use of social responsibility, employee compensation, and a good product, the New Belgium Brewing Company stands out as an excellent example.…

    • 838 Words
    • 4 Pages
    Good Essays
  • Good Essays

    South Dakota Microbrewery

    • 1726 Words
    • 7 Pages

    1. As Exhibit 1 shown, I first calculate the predetermined overhead rate, which is $15.57 per direct labor hour. And I distributed the dollar amount to different proportion based on Direct-Labor hours to get the overhead cost. Sum the overhead and direct cost to get the total cost; this will be the total cost of producing a batch of beer label. Therefore, we need to divide them up by the bottle per batch in order to know the cost per each bottle for each label.…

    • 1726 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Mountain Man

    • 2754 Words
    • 7 Pages

    With recent declining sales for Mountain Man Beer Company (MMBC), Chris Prangel is considering launching Mountain Man Light as a brand extension aligned with changes in beer drinkers’ preferences. He is seeking to maximize market coverage while minimizing brand overlap, and at the same time avoiding any brand equity damage, as MMBC’s core consumer segment is significantly different from the new targeted segment. Chris expects to negate declining sales of Mountain Man Lager and capture market share in the fast-growing light beer category, which accounted for 50.4% of all beer sales by volume in 2005 in the East Central Region (Exhibit 1). More specifically, Chris wants to capitalize on Mountain Man’s brand recognition in the region and capture a meaningful share of the local light beer market, a market in which MMBC currently has no presence. In addition, he is hoping a successful launch of Mountain Man Light in the local on-premise locations will boost the lagging sales of Mountain Man Lager.…

    • 2754 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    New Belgium Brewing:

    • 2053 Words
    • 9 Pages

    New Belgium Brewing Company’s (NBB) mission statement is “to operate a profitable brewery which is socially, ethically and environmentally responsible, that produces high quality beer true to Belgian brewing styles.” Does New Belgium’s mission statement make an ethical stance for the business? Does it even have any bearing on the products and their beliefs? It seems to when it comes to operating a profitable business and the “green” way they are doing so and the benefits given to its employees.…

    • 2053 Words
    • 9 Pages
    Better Essays
  • Best Essays

    Gallo, P. (2010). Lone Pine brews success on java bet. Absolute Return & Alpha 1(5), 25. Retrieved from Business Source Complete database.…

    • 4200 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Asahi Breweries

    • 1627 Words
    • 7 Pages

    We recommend proceeding with proposed investment plan with some revision. Detail analyses and rationalities state in the following sections.…

    • 1627 Words
    • 7 Pages
    Good Essays
  • Good Essays

    South Delaware Coors, Inc

    • 3191 Words
    • 10 Pages

    In 1873, German immigrants Adolph Coors and Jacob Schueler established a small brewery in Golden, Colorado. Lately, Coors Inc. had become the third-largest brewer in the United States. Coors invested $2,000 in the operation, and Schueler invested $18,000. In 1880, Coors bought out his partner and became sole owner of the brewery. Coors’ operating philosophy is “hard work, saving money, devotion to the quality of the product, caring about the environment, and giving people something to believe in.” Coors Inc. operation is consistent with this philosophy. Coors beer was a regional product and its marketing area was confined to the American west. In 1959, Coors became the first American brewer to use an all-aluminium two-piece beverage can. The company abandoned pasteurization and began to use sterile filtration to stabilize its beer in that year. Coors currently operates the largest aluminium can producing plant in the world, known as the Rocky Mountain Metal Container (RMMC) in Golden, Colorado. In the 1970s, Coors invented the pollution-free push tab can. However, Coors Light was introduced in 1978.…

    • 3191 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Drink-at-Home, Inc

    • 793 Words
    • 4 Pages

    CASE 2: DRINK-AT-HOME, INC. Drink-At-Home, Inc. (DAH, Inc.), develops, processes, and markets mixes to be used in nonalcoholic cocktails and mixed drinks for home consumption. Mrs. Lee, who is in charge of research and development at DAH, Inc., this morning notified Mr. Dick Jones, the president, that exciting developments in the research and development section indicate that a new beverage, an instant pina colada, should be possible because of a new way to process and preserve coconut. Mrs. Lee is recommending a major program to develop the pina colada. She estimates that expenditure on the development may be as much as $100,000 and that as much as a year's work may be required. In the discussion with Mr. Jones, she indicated that she thought the possibility of her outstanding people successfully developing such a drink now that she'd done all the really important work was in the neighborhood of 90 percent. She also felt that the likelihood of a competing company developing a similar product in 12 months was 80 percent. Mr. Jones is strictly a bottom line guy and is concerned about the sales volume of such a beverage. Consequently, Mr. Jones talked to Mr. Besnette, his market research manager, whose specialty is new product evaluation, and was advised that a market existed for an instant pina colada, but was some-what dependent on acceptance by both grocery stores and retail liquor stores. Mr. Besnette also indicated that the sales reports indicate that other firms are considering a line of tropical drinks. If other firms should develop a competing beverage the market would, of course, be split among them. Mr. Jones pressed Mr. Besnette to make future sales estimates for various possibilities and to indicate the present (discounted value of future profits) value. Mr. Besnette provided Table 1. Mr. Besnette's figures did not include (1) cost of research and development, (2) cost of new production equipment, or (3) cost of introducing the pina colada. The cost of…

    • 793 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Alaska Coffee Company

    • 1581 Words
    • 7 Pages

    Alaska Coffee Company had a head start on the state of Alaska in the business of Specialty Coffee except for one other company, Café Del Mundo. Other than that there was no real competition for them when they started their business in 1984 and they only became more profitable with expansion throughout the years.…

    • 1581 Words
    • 7 Pages
    Good Essays