This website uses cookies to ensure you have the best experience. Learn more

Mountain Man Brewing Essay

2220 words - 9 pages

Rochester Institute of Technology |
Mountain Man Brewing Company: Bringing the Brand to Light |
Advanced Corporate Financial Planning |
Professor Testa 1/23/2012 |
|
|

Shaun Levine
Ranjan Maitra
William Weintraub
Taylor Wold



Objective

Complete a NPV analysis to see if Mountain Man Brewing Company should implement Mountain Man Light to its existing product lines:

* SWOT Analysis on Mountain Man Lager
* NPV analysis for Mountain Man Lager
* NPV analysis for Mountain Man Light
* NPV analysis on whole company
* ...view middle of the document...

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.
Chris looked at some revenue and net profit projections he had developed to 2010 assuming that Mountain Man lager lost 2% of its revenue base annually. He felt a knot in his stomach as he pondered the “status quo” strategy. He then examined the financial projections he had done a few weeks prior for the Mountain Man Light launch, which showed regional revenue growth of the light beer product at 4% annually and Mountain Man steadily growing its share of the regional light beer market by a quarter of a percent each year off a 2006 base market share of 0.25%.

Financial Assumptions
* Mountain Man Brewing Company will only be able to achieve .25% of the light beer industry market share in 2006, with a gradual increment of .0025% annually
* Light Beer sales are growing at 4% annually, while Traditional premium beer sales are declining at 4% annually
* Price of a premium barrel will be same as the price of a light barrel
* To accept product, would have to generate profit within two years, enough barrels to cover both the associated launch marketing and make up for the negative impact on overall profitability resulting from lost sales of Mountain Man Lager
Strengths
* Mountain Man brewery carries a legacy in a mature business
* 2005 revenues were $50 million (520,000 barrels)
* Top Market Position among lagers in West Virginia for almost 50 years
* Respectable Market Share for old school regional brewery
* Affordable, comparable with Miller and Budweiser ($2.25 for a 12 ounce serving, $4.99 for a six-pack)
* Recent survey in West Virginia with a 67% response rate rated Mountain Man Lager as the “Best Known Regional Beer”
* Mountain Lager won “Best Beer in West Virginia” for the 8th straight year
* A small percentage of MMBC’s blue collar customers accounted for a large percentage of sales
* Brand loyalty rate for Mountain lager was 53% (42% Budweiser, 36% Bud Light)
* Brand awareness was a cornerstone of the brand’s success with blue-collar consumers
Weaknesses
* Mountain Man Lager revenues were decreasing annually by 2% in recent years
* Producing one product has caused Mountain Man to lose some of their market segment to competitors of other types of beer
Opportunities
* Most industry observers agreed that the key consumer segment for beer companies was younger drinkers, 21-27 years of age
* Mountain Man rated high in terms of awareness with the younger, light-beer drinking segment of the market
* Light Beer makes up 50.4% of the east central region beer market which is a large market to tap into.
* Expanding its sales territories to include other regions like East region
* With enough funding, could possibly buy out a regional brewer that has light beer in its...

Other Papers Like Mountain Man Brewing

Jail Responsibilities Essay

589 words - 3 pages discriminate because of gender. Neutral terms should be used to manifest, fairness and equality between sexes. Examples are; “If a woman drives” to “if a person drives”, “man-made” to “artificial” and “manpower” to “human power”. A memorandum is a note, or reminder that one wishes to preserve for future use. Its various tense forms may be done by shortening memorandum to memo. Memorandum is definitely singular while its plural form is memoranda. The

Mgt330 Essay

638 words - 3 pages Starbucks Nefertiti Wright Sangita Patel October 15, 2012 STARBUCKS 2 STARBUCKS - 1 - [no notes on this page]I. Job description a. Baristas II. Job specifications a. Duties III. Form of departmentalization STARBUCKS 3 Starbucks Starbucks have been named in the 100 best companies to work for. Starbucks has many job opportunities for people, which require the right job specifications. The employees create uplifting experience

Fight Club

917 words - 4 pages that his father was distant and he would only speak to him once a year. Being raised mainly by woman, they both feel they never had a man around to teach them what being a man is. Tyler and the narrator and the generation of men they represent have been trying for years to regain their masculinity and at the same time find a sense of direction. At the support group for men with testicular cancer the narrator meets Bob. Bob later enters fight

The Powers Of The Health And Safety Representative

254 words - 2 pages The Powers of the Health and Safety Representative A health and safety representative has the power to: Identify Workplace Hazards The health and safety representative has the power to identify workplace hazards. This power is usually exercised by conducting workplace inspections. Obtain Information from the Employer The health and safety representative is entitled to the same information available to a joint committee member. Under the Act

Lesson Plan

6476 words - 26 pages , etc. Conflict can also occur in the following situations: • Man vs. Man (physical) - The leading character struggles with his physical strength against other men, forces of nature, or animals. • Man vs. Circumstances (classical) - The leading character struggles against fate, or the circumstances of life facing him/her. • Man vs. Society (social) - The leading character struggles against ideas, practices, or customs of other

Management

1227 words - 5 pages Coca-Cola Global Business and Marketing Strategy Introduction As domestic markets mature, it is becoming more and more fashionable for organisations to seek growth through opportunities in foreign countries. Faster communication, new technologies and improved transport links are making international markets more accessible and businesses pursuing a global position can experience an upsurge in brand awareness and cost effectiveness. Global

Facing Poverty With A Rich Girl's Habit

783 words - 4 pages Facing poverty with a rich girl’s habit Adele Strader Professor Chryst English Composition October 22, 2012 Facing poverty with a rich girl’s habit was written by Suki Kim and published in the New York Times on November 21, 2004. The most important point that Suki want to make was that (1) what we have in life can be taken away in an instant (2) do not go bankrupt in South Korea (3) that a person must adapt and endure

3-4-50 Paper

572 words - 3 pages -4-50 paperLack of exercise is a key contributor to disease and death among many people in the United States, regardless of age. It is a well-known fact that exercise results in a healthier lifestyle. Along with tobacco use and poor nutrition, lack of exercise is one of the main issues that people have which leads to high blood pressure, obesity, and other serious health problems. According to a study by UCSD School of Medicine and SDSU

Capitalism

836 words - 4 pages Miguel Beatrice Capitalism is an economic system in which private individuals and business firms carry out production and exchange of goods and services through complex transactions involved in prices and markets. By extension called capitalist higher social class of this economic system ("bourgeoisie"), or to the common form would the individual interests of capital owners in both companies, shareholders and patterns, also called capitalism

Sociology

1177 words - 5 pages Homelessness in America Homelessness in America is a social problem that we are faced with on a daily basis. Despite the vast number of research done by Americans on homelessness, little is still known about the effect that it has on our society. The overall image that emerges from the effects of homeless people

Mental Health Community Service Essay

509 words - 3 pages Ladesca Smith Nursing 162 Community Volunteer Service Assignment Why you chose this agency? I chose this Sharing God’s Love, because I was interested in what kind of services they provide. I also wanted to know if there was any help out there for the people in need with mental illnesses. I also had lots of my kid’s old clothing that I needed to get rid of, so I donated it to them. Describe the population the agency serves. The

Related Essays

Lafarge S.A Essay

2924 words - 12 pages with the challenge, Lafarge Morocco setup a permanent four-man support team, including the plant manager, to facilitate personnel redeployment once the plant closure became official”. This enabled the proper implementation of the redeployment plan by ensuring the development of an approach that eased the transition of the laid-off employees from their jobs into self employment. Laszlo & Myers (2006) in throwing more light to the approach

Finance Essay

665 words - 3 pages Financial statements are the most common tool used for making business decisions. They consist of the balance sheet, income statement and statement of cash flows. The analysis tools used affect all aspects of a company not just a few. A systematic review of the resources a company used to achieve its mission is cost control. Cash flow should be kept at necessary levels for operations is one of the major benefits of cost control. It is a very

Analysis Of Operation Blue Star And Its Effects On The Gandhi Dynasty

934 words - 4 pages The period of time including and following Operation Blue star is considered a dark time in India and black spot in Indian history. It is a time Indian would rather forget, yet still to this day debate about. Was Indihar Gandhi correct in instating operation Blue Star, inflicting damage to the Golden temple, and being responsible for the killing of anywhere from 492 (official reports) to 1500 (estimates run as high as) civilians, which lead to an

Regretful Decisions Essay

930 words - 4 pages Regretful Decisions There are many individuals in a child’s life that helps mold them into a well-rounded adult. In most cases, this guidance comes from the child’s parents or other older, but in Sonny’s case, this guidance was expected from his older brother. In the short narrative, Sonny’s Blues, Sonny’s life was adversely affected by the decisions that his older brother made. The decisions that his brother made include leaving Sonny to stay