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Man Brewing Firm Case Solution & Answer

Man Brewing Firm Case Solution

Executive Summary

Mountain Man brewing firm is a family-owned liquor store in West Virginia, which has massiveness pasties as a big product in the domain. Since its establishment, the company has beenselling its products to the blue, medium-sized collar to low-income generating people in the domain for its bitter and high alcohol content. Chris Prangel, who is Masters Qualified, had returned to his house to lead the advertising business of the firm, a privately-managed business. Because of various differences in the taste of customers; the corporations now facing a massive decrease in its revenues. In response to such issues, Chris has thought of launching a new product, a Light Drink:“light beer”,The corporation has attempted the introduction of light beer in hopes of attracting the youth towards its drink, but it has landed itself in facing an opposition from the upper management. Light Drink Lager’s product’s-worth is an important resource for the light drink of the brewing firm. The company has to estimate that whether the new light drink would be able to improve the company’s profitability or not.

Summary of Problems

  • The firm is expected to lose about four$ 1 m in annual sales in the year 2010.
  • The company has the possibilities to face potential risks-regarding financing due to an increasing costs,such as: marketing cost of $ 850,000 and other potential SG&A costs estimated at $ 950,000, which tend to affect the company financially.
  • The third problem is the type of beer market contrast to Mountain Man’s power in advertising and other stronguses, as the competitors are experienced enough to use much efficient skills.

Summary of Recommendations

  • To develop Mountain Man Light with brand extension, without changing its name.
  • Introducing a new product, using a new marketing combination (Product, Price, Promotion of Places)
  • Advertising a new product using the same old name on online media and social networks.

Major Problems

  • Shift chosen beer from strong to light.
  • Light Beer market is projected to grow by 4% CAGR over the next 5
  • 1% low sales revenue.
  • Growing government taxes.
  • Growing health issues among consumers due to alcohol and substance abuse.
  • The younger generation of beer drinkers prefer a stronger beer as compared to light beer, which is why they look for a company that offers what the young consumers are looking for.
  • Light Beer contains 55.4% of the shares in the Beer market.

Removal of restrictions from the advertisement of beverage in market outlets in other provinces of the East-Middle Domain of the U.S, allowed the competitors to influence our unethical buyers by offering lucrative discounts.

Unsupportable Mm malt buyers spread their use beyond other five beers’ type, and price is the main cause which influences the decision of buying beer.

MMBC will address a major issue on the road that will threaten the company’s existence.They are short-sighted in their policies and focus only on the short-term solution to trace the lost customers back…………………….

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