Delaware Coors Case Essay

Philip J. Cooper v. Charles Austin 837 S. W. 2d 606 (Tenn. Ct. App. 1992)

Demand for a good/product as Sherman et al. (2008) note "is the quantity of that good buyers would be willing and able to purchase during a given period, at various price levels"¦" Currently, the entity has "a 48.3 percent share of U.S. beer sales to retailers" (Anheuser Busch 2011). In this case, using the percentage of beer sales the firm makes to retailers as an indicator of demand, one can easily conclude that the demand for Anheuser Busch's products is quite high. The high demand in this case can be attributed to aggressive marketing and advertising as well as a recovering economy.

Recommendation (s). After doing extensive research, we recommend Larry to pursue the Coors distributorship in southern Delaware. The total investment for the distributorship was estimated to be $800,000. Larry had enough funding to pursue this opportunity by investing $400,000 from his trust fund and made a loan from the bank in the amount of

In many ways, the opinion in this case represents a final step in the creation of

Which research studies should Larry ask Mason and Associates to complete?  Upon consideration of the research study results, is this new business venture a go?

The purpose of this research paper is to analyze Sam Adams and the global craft beer market. I will apply microeconomic models to analyze the supply and demand conditions for Sam Adams, its price elasticity of demand for products, cost of production and the overall market. There will be recommendations to maximize future profits and sustain success for Sam Adams. In this paper I will also analyze the craft beer industry and recommend actions for better management of supply and demand, improving the cost of production and the different barriers of entry that Sam Adams can utilize to impact its future in the craft beer industry. Applying the concepts of variable and fixed costs, I will make recommendations for its output decisions and profitability that will help them succeed in a monopolistically competitive market structure. In the conclusion of this paper I will make recommendations to manage future production and sustain its success, as well as evaluate the business structure and effective decision-making strategies. The craft beer industry is a monopolistic competition because it has the ability to allow many firms to produce similar good or services, but it at the same time allows each firm to make independent production decisions and differentiate their product from the competition by creating its own pricing.

The three major concentrate producers in the United States are; The Coca-Cola Company, The Pepsi-Cola Company, and Dr. Pepper/Seven Up, Inc. These three companies command over 90 percent of carbonated soft drink sales in the United States. Coca-Cola is the leader in the industry with a 44.1 percent market share. Second, is Pepsi-Cola with 31.4 percent and third, is Dr. Pepper/Seven Up, Inc., with 14.7 percent. The top ten brands of soft drinks are marketed through these three organizations. Coca-Cola has five out of the top-ten brands which include; Coke Classic, Diet Coke, Sprite, CF Diet Coke, and Barq's Root Beer. Pepsi-Cola is second with three brands in the top-ten that include; Pepsi-Cola, Mountain Dew, and Diet Pepsi. This puts Dr. Pepper/Seven Up, Inc., in third again with two out of the ten brands. The two brands are Dr. Pepper and Seven Up. These three organizations spend a major amount of money on advertising through promotions and consumer price discounting. Dr. Pepper/Seven Up, Inc., does have an adequate advertising budget but not as much compared to Coca-Cola and Pepsi-Cola. This means that Dr. Pepper/Seven Up, Inc., has to be a little more creative in the strategies they use to reach their target market. The Squirt Brand may not be in the top-ten brands but, with flavored soft drinks becoming more popular because of changes in the United States demographic Dr. Pepper/Seven Up has an

Throughout most of its history, the Coors Brewing Company (Coors) has been a regionalized brewer within the United States, specializing in high-quality beer through by virtue of its source water selection, stringent production standards, and cold filtered brewing approach. As the company expanded its distribution to new markets within the U.S. in attempt to gain market share, it made a strategic decision to maintain a majority of its brewing operations at its primary production facility in Golden, Colorado. This decision was based upon the desire to preserve its core production strengths through close family control. However, as the company desires to expand its market presence beyond the

The situation facing Mr. Larry Brownlow is a tough one. He is young with minimal money to work with. This shows that he must be careful and research all of his investing activities closely. The problem that faces him is deciding if opening a Coors Beer brewery in his area of Delaware is a profitable investment. The beer is obviously not widely carried in the area so that makes the situation that much harder. He has less information to work with. This is why he contacted the Manson Research Firm. That presents the second problem. The firm will do the research to help do a feasibility analysis, but the information is not cheap. Larry is working with about two weeks until the deadline to submit an application for distributorship. He

One of the weaknesses to distributing Coors beer in the two counties is the competition of other domestic and microbrew beers. Although the consumer and retailer willingness to buy Coors beer is high, will they actually purchase Coors beer when it becomes available to them? The questionnaires have strong feedback for Coors beer in the Delaware counties but people may become biased by their customer loyalty to other beer brand. There is a big enough marker share for Coors to be implemented, but will Brownlow be able to succeed in this competitive industry.

To estimate variable costs, Tables F and I are needed. Table F shows the cost of goods sold averages 77.1% of sales (variable cost); Table I shows an average wholesale price for the seven competing brands of about $3.16 per six pack (about one gallon).

Mr. Larry Brownlow needs to decide whether or not to apply for the Coors distributorship in southern Delaware.

In Oklahoma, beer described as nonintoxicating because of its very low level of alcohol content was outlawed only if sold to men under the age of 21. However, the sale was outlawed to women under the age of 18. Plaintiff sued, claiming that the law discriminated on the basis of gender and therefore violated his equal protection rights under the 14th

§ Five dominant competitors: Red Bull, Hansen Natural (Monster), Pepsi (Sobe Adrenaline Rush, AMP), Rockstar, and Coke (Tab, Full Throttle)

The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten