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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 The financial projections of the introduction of the new product that is the extension of the product line is being performed in the excel file in which proper analysis has being done and it has been concluded that it is a negative NPV idea and thus should not form the part of the product line as the light beer is not attractive and does not attract the market as much as the amount that will be spend in the introduction of the new product in the eastern market. As the incremental costs incurred are much more than the excess contribution arned by the company form the extension of the product line.
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” . However, there are several reasons why I suggest that this extension would actually hurt the brand .
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