Qus: What is your recommendation and why? Ans: - First of all I would like to mention that that Mr Chris Prangel wanted to introduced a beer called Mountain Man Light to cover his market share and to induce brand equity. There are some facts regarding industry and company, which are listed below, * Company was well known for strong beer and their main customers are blue collar service man. * Revenue of the company for 2005 was $50440000 and quantity was 520000 barrel. * Through focus group and marketing research, it was concluded that youngster were the main consumers for light beer. * Young population accounts for more than 27% total beer consumption. * If company goes for Light beer production then they can utilize their current production plant, only their variable cost will be increased by $4.69 Barrel. Whereas currently their variable cost is $66.93. * For 60% awareness, company should have to invest $750000 for six months. * $900000 will be SG&A cost in production for Mountain Man Light. Before conclusion we would have to write all possible outcomes, which will ......

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