Essay on Market for Coors in South Delaware

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

Larry has $15,000 available for research and $500,000 for investment into estimated at $90,000 per year. A research estimate of beer sales in the South Delaware area is needed in order to determine if the business will be profitable.

Larry Brownlow has a business opportunity and decision to make regarding whether or not the business is a feasible option. This business opportunity is perfect for Larry because he will have access to most of the start-up costs and Coors, Inc. is expanding into his territory. Another opportunity was the ability to be successful in business in Delaware with Coors.

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.

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

The Boston Beer Company, Inc., founded in 1984, is a leading brewer in United States, offering wide variety of high quality full-flavored, handcraftedbeers. It is distinctive due to the time-honored recipe of brewing and authentic, consistent quality of alcoholic beverages. Samuel Adams Boston Lager is the pride of BBC, regular handcrafted beer “stands for quality, inner self-worth, authenticity, and unique New England or Yankee toughness” ( Martin Roper, Chief Operating Officer). Unfortunately, the company experienced the failure of conquering light beer segment

Following the repeal of Prohibition in 1933, the major breweries continued to use unmalted cereal grains to provide the full body and mouthfeel of a “real” beer while keeping the alcohol content low. The maturation tanks (they call them chip tanks) that Anheuser-Busch utilizes are horizontal and, as such, the yeast aggregates more quickly. Anheuser-Busch refers to this process as a secondary fermentation, with the idea being that the chips give the yeast more surface area to rest on. This is also combined with a procedure that re-introduces wort into the chip tank therefore activating the fermentation process again. By placing chips at the bottom of the tank, the yeast remains in suspension longer, giving it more time to reabsorb and process green beer flavors that Anheuser-Busch believes are off-flavors which detract from overall drinkability. As with most food products opinions differ regarding its taste. While some drinkers prefer the lightness of beers like Budweiser and consume it as refreshment, some beer writers consider it as being too bland. The beer is light-bodied with faint sweet notes and negligible bitterness, leading to reviews characterizing it as a “...beer of underwhelming blandness.” Despite these negative reviews, Budweiser has a 19.9 user share and accounts for 26% of sales volume in the regular domestic category,

A documentary film made in 2009, Beer wars features and describes the American beer industry distinguishing between the large and small breweries. The large breweries feature some main corporate companies like Coors Brewing Company, Anheuser-Busch, and Miller Brewing Company whereas the small breweries include craft beer producers like Moonshot 69, Stone Brewing Company, Dogfish Head Brewery, Yuengling, and others. The documentary shows how the beer market is controlled through advertising and lobbying, which is harmful for the competition in the market. There is a reason why the small companies are falling behind and the large corporates are controlling the market, which in turn makes it essentially oligopoly economy.

Coors is focused on building its market brand and share through high quality inputs and high quality product. It wants to build revenue through a national expansion plan that includes two or three states a year. While Coors shows consistency in their desire for expansion and brand quality through core technologies, branding, internal developments, high-quality ingredients that lead to high quality products, they do have some glaring inconsistencies.

The brewing industry it different from many other industries because it is not governed by laws regarding patents or exclusive grants. A majority firm does not control the inputs required for brewing beer and the supply for brewing materials is fragmented. There are high costs associated with entering the brewing industry, such as establishing a network of suppliers and distributing the product. It has been estimated that the construction of a four to five million barrel a year plant would cost around $250 million, and this is just the fixed cost of building and maintaining the brewery. There is an even greater amount of capital needed when the marketing activities needed to distribute beer are added in. This all means that any new entrants would have to invest heavily to establish a strong reputation and brand awareness. It may seem odd that a company of Anheuser-Busch's size is allowed by the government to maintain such a huge portion of the market. But nothing in the way Anheuser-Busch prices products or promotes them is monopolistic in nature. There is still heavy competition among other corporations because of different product offerings, which makes it more beneficial for the industry to be an oligopoly.

The current form of ownership is LLC and the total initial investment in the company will be $50,000-$100,000.

Branding comprise, thence, of the improving and care of sets of product attributes and valuation which are, distinctive, coherent,