interoffice memorandum
Mountain Man Brewing Company (MMBC) is experiencing a decline in revenue for the
first time in company’s history. Revenue erosion, stiffening competition, maturing product,
trend for healthier lifestyle, aging customer base, failure to attract young and female
consumers and few product offerings are threatening to steal its overall customer base. The
strategy team has decided that MMBC should introduce an extension in the form of
“Mountain Lite”. Among the vibrant youth, MMBC’s “Mountain Lite” is dedicated in
bringing a unique experience of an authentic high quality beer, tailored to the taste of new
customers and continue to build on our loyal customers. It should target people aged
between 21–40 years of age and should opt for a dynamic and differentiated marketing
strategy for light and dark beers to avoid consumer confusion.
MMBC’s core product, Lager beer has reached its maturity stage and has started to
experience a decline in revenues by 2% and is further expected to do so (Exhibit 1). Lager
beer is an established and a winning brand, with an aging and blue-collared clientele
having small customer lifetime value, this market is bound to reduce. To prepare for the
future and sustainability, MMBC should expand on the opportunity to target a “new
market” segment using their brand reputation, brand equity and the business experience to
successfully achieve their goals. MMBC will be able to see an increased market segment
and brand preference by launching a line extension as it will address the needs of the new
market segment, the untapped youth and health conscious beer drinkers because the light
