...Man Brewing Company’s (MMBC) one product offering-Mountain Man Lager. After reviewing MMBC’s current state of affairs and analyzing it with different marketing tools and financial forecasting, I recommend that MMBC move forward with a premium light beer product, start research and development on a recipe and retain a marketing firm to help build brand awareness in 2006 and launch in Q1 2007. A premium light beer will not only capture a new demographic by extending the MM Lager brand, but will steadily and profitably replace the 2% annual decline in Lager revenue. (See exhibit 3). In order to defend my recommendation, I utilized a few different assessment tools including a Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis (See exhibit 4). This analysis quickly pointed out areas of brand strength and the opportunities available in diversifying the product portfolio. Additionally, both the threats and weaknesses detail the unfavorable position the company faces when launching the light beer line. I also performed a portfolio analysis incorporating the product/market expansion grid which allowed me to outline market segmentation and product positioning. I concluded with the product lifecycle and the revenue light beer would generate by forecasting both Lager revenue decline and 5% and 20% cannibalization rates. (See exhibit 3). Recommendation Support MMBC has done a terrific job holding market share against better funded national brands with its core market segment...
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...place the firm wishes to occupy in its’ target customers’ minds” (Silk, 2006, p. 90). In the case of MMBC, the definition of the target customer was under discussion. For purposes of the first question, I developed the following positioning statement based on what I believe was the historical perspective of MMBC. Mountain Man Brewing Company produces Mountain Man Lager; the most authentic regional beer for working class East Central Americans, among all premium domestic beers, because of its distinctive quality, bitter flavor, slightly higher than average alcohol content and competitive price (Abelli, 2007, pp. 2-3). This positioning statement would help MMBC to target its product toward the blue collar worker in the East Central region. While not specifically stated in the case, I believe Mountain Man Lager met the following needs of this target audience: a need to feel toughness, pride in an East Central quality product, and an affordable price. MMBC’s strategic focus on this target audience helped it to be successful in the highly competitive market for premium beers, even when other local brewers went out of business. Their success was due to a loyal customer base, high brand recognition and support, and a product with high perceived quality. The sole brand loyalty rate for Mountain Man Lager was 53% which was higher than the rates of competitive products such as Budweiser at 42%, and Bud Light at 36% (Abelli, 2007, p. 5). The case states that the Mountain Man...
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..."This method measures the alcohol content by volume of any wine,spirit,or beer,using a hydrometer, giving readings as accurate as an ebulliometer used by commercial wineries. The method is based on the research of Dr. William Honneyman,Ph.D." 1.Measure the SG of the wine you wish to test.We will call this figure SG-1. 2.Measure exactly one pint of the wine (500ml).We will call this the sample. 3.In a enamelled or glass pan,boil the sample down to about half it's original volume.This drives off some of the water,but all of the alcohol,because alcohol boils at a lower temperature than water.The sample now consists of water,residual sugar,colouring matter,acids and proteins-that is,all the non-alcoholic constituents of the wine. 4.With distilled water or rain water,make the boiled-down sample up to exactly a pint again.Tap water is not recommended because,in some areas,it has a considerable dissolved mineral content which could affect your results. 5.Cool the sample down to 60o-F, or what ever temperature your hydrometer is calibrated for. 6.Read the SG of the sample,we will call this reading SG-2.You will find it higher than SG-1 because you have removed the alcohol and replaced it with water. 7.Subtract SG-1 from SG-2. The difference is called the Spirit Indication. 8.Read the alcohol strength from the following table. Spirit Indication---- Alcohol Strength,% by volume 1.5 ----------------------- 1,0 2-------------------------- -------------------------- 3...
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...first time in the company’s history, Mountain Man Brewing Company is experiencing declining sales in response to changes in beer drinkers’ preferences. Mr. Prangel’s response to this problem is introducing a “light beer” form of the popular Lager. In the past six years, the “light beer” industry as increased at an annual rate of 4% while sales of traditional beer has been declining annually by 4%. Although this seems like a probable solution, there are two major problems Mr. Prangel is facing: 1.) Mountain Man’s current target market will not approve of this new beer, and 2.) bringing in a light version of the Mountain Man Lager could ruin the brand image and ultimately destroy the company. Mountain Man’s biggest target market currently, and pretty much since it started in 1925, is males ages 45-54. Most of these males are blue-collar, hardworking males. It has been known as “West Virginia’s Beer” known for its authenticity, quality and its toughness. To the younger beer drinkers, the market the light beer appeals to, view Mountain Man beer as too strong and a “working man’s” beer. Not only do the younger beer drinkers have their negative thoughts about Mountain Man developed, but the blue-collar customers account for a huge percentage of sales. The brand loyalty rate for Mountain Man Lager is 53% which is higher than any of its competitors. The “light beer” appeals to the younger generation, especially the females, and Mountain Man Lager has always appealed to the older, rugged...
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...decline in annual sales of 2% from 2004-2005 and is struggling to maintain its market share in the premium segment of the beer market, where other companies have disappeared. Chris is concerned if he could reposition the brand to drive sales of Mountain Man Light to young people without eroding the core brand equity of Mountain Man Lager (MM). 2. SITUATION ANALYSIS Company * Independent family business in West Virginia, with 1.4% market share and a well established reputation throughout the East Central region of the United States. * MM beer is recognized as a traditional high quality beer in the region, with high brand loyalty. * MM had not expended its product line beyond its flagship lager product. * Invested in a number of branding activities to build “brand equity” with core customers. * MM sold 70% of its production in off-premise locations through its small sale force. * Although MM is a brand with high awareness, it is not appealing to everyone. Customers * The core consumers are Blue-collar, middle to lower income men over the age of 45 in the East Central Region. * They have high brand awareness and 60% of them purchase their beer in off-promises locations. * They are in strong aging demographic tendency and spend less on alcohol than younger drinkers, between 21 -27 years of age Competition - The mature beer industry in the US falls into four categories and is highly competitive. 1. Major Domestic Producers (74% in Region):...
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...Report Company Overview Mountain Man Beer Company (MMBC) is a family-owned brewing company that is the maker of Mountain Man Lager, or “West Virginia’s beer.” Mountain Man Lager is known for its reputation as a quality beer and is targeted throughout the east central region of the United States. Mountain Man Beer Company is in the second-tier beer industry, and known for its distinctively bitter flavor and slightly high alcohol content. MMBC’s competitive advantage is its brand equity, and value placed on its product. With brand playing a crucial role in the beer-purchasing decision, MMBC has had great success with its brand standing out as a traditional beer with a loyal customer segment, of middle to lower income men over the age 45. Primary Problem The primary problem for Mountain Man Beer Company is if they launch the new product, Mountain Man Lager Light, will they lose their main customer base. Changes in beer drinkers’ preferences have left the company with declining sales for the first time in the company’s history. A strategic plan in response to the declining sales is to launch a new light beer in hope of attracting younger drinkers to the brand. Light beers are growing at an annual rate of 4%, while traditional premium beers have been declining annually. With younger beer drinkers, 21-27 years of age being the main target for light beer, and making up over 27% of total beer consumption, MMBC is considering launching a light beer hoping to attract this demographic to...
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...introduce a line extension of Light Beer to expand their portfolio and create new sales among non-existing customers. This line extension will target the younger drinkers and women in the East Central Region and will increase sales and create profit within 2 years. Rationale: 1. Light beer sales will be profitable within 2 years. The first year MMBC will lose $486,374. However, in 2007, the second year, MMBC will gain $1,520,341 in profit. See Appendices 6 and 7. 2. Currently, MMBC can afford the line extension. If MMBC were to wait a few years, there might not be any profit to pay for a line extension. 3. Light beer sales are growing at a 4% CAGR. In 2001, light beer accounted for 29.8% of beer sales. In 2005, light beer now accounts for 50.4% of beer sales. See Appendix 3. 4. Women are included in the target market for Light Beer making up 42% of sales. In the East Central Region, women consume 21% of the barrels sold and 27% of the Light Beer Barrels sold. See Appendix 9. 5. The young drinkers (age 21-27) consist of 13% of the population and 27% of beer sales. This age group mainly consumes light beer and has not established any brand loyalty. Ages 21-35 also consume 20% of the barrels sold in the East Central Region. See Appendix 9. 6. MMBC sales are declining by 2% annually. Introducing a light beer would increase revenue. See Appendices 1 and 2 for sales declining. See Appendix 4 for potential profits for Light Beer. 7. The young drinkers send...
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...Analysis of the Anheuser-Busch Company Report by Valanium Analysts: Chris Rigopulos, John Schneider, Jayne Tan Investment Recommendation: MARKET PERFORM December 5, 2001 BUD – NYSE (11/30/01) 52 week range Revenue (2001E) Market Capitalization Share Outstanding $43.10 $36.75 – $49.00 $14.9B $38.2 B 884.3M EPS Forecast (FYE 12/30) EPS Ratios Trailing P/E Forward P/E Leading PEG M/B Price/Sales 1999A 2000A 2001E 2002E $1.49 $1.71 $1.89 $2.09 Dividend Yield 1.67% Avg. Daily Trading Volume (3mo) 2.13M Book Value per Share (mrq) Return of Equity (ttm) Return on Assets (ttm) Est. 5 Years EPS Growth Rate Sector: Consumer/Non-Cyclical Industry: Beverages (Alcoholic) $4.83 40.39% 10.71% 11.0% BUD 23.2 20.6 1.87 8.93 3.11 Competitors Avg. 17.4 15.9 1.37 3.10 1.21 Valuation Predictions Actual Current Price Trailing P/E Valuation Leading P/E Valuation PEG Valuation M/B Valuation Price/Sales Valuation EBO (Abnormal Earnings) Valuation DCF Valuation Performance (Trailing, Annualized) Return on BUD Return on S&P 500 Return on Competitors $43.10 $32.38 $33.24 $31.48 $14.95 $16.73 $19.25 $46.87 6 mo -2.1% 18.3% - 2.9% 12 mo 24 mo -7.4% 9.9% -13.4% -10.3% 2.1% 8.9% Source: finance.yahoo.com, Valanium analysis • • Our valuations reflect a range of predictions, all falling below the current price point with the exception of the DCF estimate. However, we believe that A-B’s brand value and domestic presence are not captured within the accounting numbers...
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...has caused MMBC’s decline in spite of its strong brand? 3 Should MMBC introduce a light beer? 4 Is MM Light financially feasible for MMBC? 5 Break-Even Point (BEP) Analysis 6 MM Lager Cannibalization 6 MM Light Marketing Strategies 7 Exhibit 1 – SWOT Analysis 9 Exhibit 2 – Financial Data and Assumptions 10 Exhibit 3 – Break-Even Point (BEP) Analysis Calculations 11 Exhibit 4 – MM Lager Cannibalization Calculations 12 Exhibit 5 – MM Light Marketing Strategy 15 What is the current situation? Mountain Man Brewing Company (MMBC) is a family business founded in West Virginia in 1925 by Guntar Prangel. The company is now operated by Guntar’s grandson, Oscar. Oscar’s son, Chris, is slated to inherit the business in five years when his father retires. Mountain Man (MM) Lager is the flagship product and the only beer currently produced by the company. The recipe for the lager was based on a refined family recipe and is known for its flavorful, bitter taste. By the 1960s, the lager had established itself as a legacy beer with a rich history, and the company continues to maintain its independent, family-owned status which appeals to its core drinkers. By 2005, the popularity of MM Lager in the East Central region of the U.S. had grown to generate revenues of just over $50 million, and the beer held the top market position among lagers in West Virginia. MM Lager won “Best Beer in West Virginia” in 2005 for the eighth year in a row. What has made MMBC successful...
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...deal to take over Grupo Empresarial Bavaira, South America's second largest brewer. In the 2006 annual report SABMiller outlined four strategic priorities upon which its success depended: 'Creating a balanced and attractive global spread of businesses .... Developing strong relevant brand portfolios in the relevant market .... Constantly raising the performance of the local businesses . . . . Leveraging our global scale.' This statement of strategy may be seen as a synthesis of the learning the company has developed over its history, first weathering the political crises of twentieth-century South African history, then building its operations in emerging and mature markets, where its 1 The Economist 'The battle of big beer', 13 May (2004). expertise as .a turnaround specialist'l was further consolidated. Background As a company SABMiller is older than the state of South Africa...
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...Mountain Man Beer 2/24/11 To: Mountain Man’s senior management team From: 1336226, branding consultant Subject: Proposal to Create Mountain Man Light The decision that Mountain Man Beer Company currently faces is whether to extend its brand name to include a light beer, Mountain Man Light. My position on this decision is that Mountain Man Beer Company should not participate in this extension. It is true that financially the light beer market looks attractive. “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” (Abelli, 1). Another reason why this may seem like an attractive decision is because Mountain Man is experiencing a decrease of sales due to changes in beer drinker’s preferences (1). Also, “Mountain Man’s 2005 revenues were down 2% relative to the prior fiscal year” (4) Together these pieces of information seem to show that extending the Mountain Man brand to light beer is a good idea. However, there are several reasons why I suggest that this extension would actually hurt the brand. Consumer choice of beer is driven by seven main attributes. These attributes are taste, price, the occasion being celebrated, perceived quality, brand image, tradition, and local authenticity. The functional reasons to choose a beer are taste, price, and perceived quality. The emotional reasons to choose a beer are the occasion being...
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...CRAFT BREWERS ALLIANCE, INC. 2010 Annual Report UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2010 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ______________ Commission File Number 0-26542 CRAFT BREWERS ALLIANCE, INC. (Exact name of registrant as specified in its charter) Washington (State of incorporation) 929 North Russell Street Portland, Oregon (Address of principal executive offices) 91-1141254 (I.R.S. Employer Identification Number) 97227-1733 (Zip Code) (503) 331-7270 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Common Stock, Par Value $0.005 Per Share Name of Each Exchange on Which Registered The NASDAQ Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: None. (Title of Class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act...
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...| Location & Campus (SGS or HN) where you study: | RMIT Vietnam | Title of Assignment: | Final Report (#2 Assignment) | Student name: | Vu Tran Hoang Anh | Student Number: | S3343719 | Teachers Name: | Dennis Tan | Group Number: | #2 | Assignment due date: | 19.08.2013 | Date of Submission: | | Number of pages including this one: | 19 | Word Count: | 2,697 (Included picture/chart in-text citations) | Bachelor of Commerce Program Assignment Cover Page BUSM3311: International Business Name: Vu Tran Hoang Anh | Student ID: s3343719 | SABECO | BUSINESS REPORT | Contents BACKGROUND OF COMPANY 2 AUSTRALIAN MARKET BACKGROUND 4 Market overview 4 Market opportunity 7 COMPETITORS 8 BUSINESS MODEL CONSIDERATION 9 International Joint Venture (IJV) 9 Exporting 10 Wholly Owned Subsidiaries (WOS) 10 PEST ANALYSIS 11 Political 11 Economics 11 Social 12 Technology 13 CRITICAL RISK 14 CONCLUSION 14 REFERENCE LIST 15 BACKGROUND OF COMPANY Saigon Beer Alcohol and Beverage Corporation (SABECO) has a developing history going along with the raise of the brand Saigon Beer. SABECO was officially established in 2003 and the head office is located in 06 Hai Ba Trung Street, District 1, Ho Chi Minh City. Before officially getting in with the current name of SABECO, company had been through several stages of developing and merging. In 1977, Southern Beer Alcohol Company took in charge Cho Lon Beer Company from BGI and then established...
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...Anheuser-Busch and Miller Brewing Company that were profitable, publicly traded firms—but there was something different about Alridge: it embodied the ethos and grassroots beginnings of the microbrew movement, and Shipman was confident that widespread market demand for craft beer was set to explode. He and the team had steadily developed their premium-quality handmade ales for nearly fifteen years, and their loyal customer base was strong. In the last year alone, he’d forged alliances with both Starbucks (for the purposes of co- branding a coffee- flavored brew) and A-B that had purchased a capped 25% interest in AB in exchange for access to its national distribution networks and accounting systems. Shipman had overseen significant capacity increases, with plans on the horizon for yet another brewery in Portsmouth, New Hampshire. He had worked hard to position AB favorably for expansion, and the public offering would provide the necessary capital. But how would the “microbrew” feel of AB translate to the largescale commercialization and growth pressures of the open market? Producing and distributing microbrews on a large scale was a new concept—and like any new concept, it would have to be sold. Shipman hoped to sell craft beer—and lots of it—in the heartland of America. Revolutionary Beginnings Shipman thought back through the determined, tumultuous beginnings of the company he had helped to found after graduating from the Darden School of Business at the University of Virginia in 1980....
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...The Saw Brewery “Crazy Owl” Full of Life, Full of Fun The Saw Brewery 999 Heritage Overlook Kennesaw, Georgia. 30188 1-800-SAW-BREW sawbrewery@gmail.com Confidentiality Agreement The undersigned reader acknowledges that the information provided by _______________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities. Table of Contents 1. 2. Executive Summary .................................................................................................... 1 Situation Analysis ....................................................................................................... 2 2.1. Internal Analysis ................................................................................................. 2 2.1.1. The Company................................................................................................ 2 2.1.1.1. Mission ....
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