Mountain Man Brewing Company (MMBC) was founded in 1925 by Guntar Prangel. Mr. Prangel used an old family recipe to brew a bitter, full flavored lager, which is the pride and joy of MMBC. MMBC uses unique barley and hops to create their masterpiece (See Appendix A). MMBC generated a little over $50 million in gross revenue while producing 520,000 barrels to distributors in Illinois, Indiana, Michigan, Ohio, and West Virginia. West Virginia is the native state that MMBC is located and distributes its lager. Mountain Man Lager was the best-known regional beer in West Virginia and has won “Best Beer in West Virginia” for the eighth consecutive year. They were also selected “America’s Championship Lager” at the American Beer Championship (Case MMBC). MMBC targets hard working blue-collar males that prefers bitter fuller-flavored beers. There are potential market segments in young drinkers that are between the ages of 21-27 who does not have any brand loyalty or preference. Young drinkers preferred light beer and this was one of the weakness MMBC had with its product offering (Case MMBC). MMBC faces tough competition from major brands like, Anheuser Busch, Miller Brewing Company, and Adolf Coors. These companies accounted for 74% of 2005 beer shipments in Mountain Man’s region (Case MMBC). There are also imports, domestic, and craft breweries that compete for market share in the light beer segment. Problem Definition
Chris Prangel, who is to inherit the company from his father in five years saw what the company needed to do to stay profitable. Mountain Man Brewing Company is faced with declining sales for the first time in the company’s history. MMBC is looking into expanding their product line by introducing a “Light Beer”. Light beer has been growing is sales for the past six years while premium beers have been declining (Case MMBC). A market research firm conducted a focus group with male and female participants that range in...
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