South Delaware Coors Inc. Case #1
Problem Statement In 1873, Adolph Coors built a small brewery called Coors in Golden, Colorado. Now, as of 2014, this small brewery has become the largest single brewery facility in the world. Over the years, the company has expanded their market and has become the third largest brewer in the United States.
Larry Brownlow, a young entrepreneur, wanted to operate his own business after completing graduate school. He agreed to a distributorship opportunity with Coors. The brewery company was looking at expanding their market potential of a Coors beer distributorship to a two-county area in southern Delaware. Brownlow used his resources to find and contact Manson and Associates, a research company, …show more content…
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.
Recommendation and Implementation
All of these studies were important information to start this distributorship in southern Delaware, but some studies were more vital to obtain than the others. There were a few options for Brownlow to do. One, he could perform no research on his own and only purchase research from Manson; doing this by, getting a loan from the bank. Two, he could perform some research on his own and purchase the remaining research from Manson. The last option would be to purchase none of the studies from Manson’s research proposal and research everything on his own.
My recommendation would be for
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Larry Brownlow is considering whether or not to apply for the distributorship of Coors in South Delaware. Coors started as a small brewery back in 1873 and has since grown to become the 4th largest seller of beers in the country. Coors focuses on high quality beer which is well known both to its suppliers and to its consuming public.
Larry has several different options to choose from with respect to research studies that can be completed. As long as he stays at or under his $15,000 budget he can request that any combination of studies be completed by Mason and Associates. Larry was presented with 9 different research studies that may be of assistance to him in deciding whether or not this truly is a ‘golden’ opportunity.
The purpose of this analysis is to evaluate the potential profitability and market share of the Coors brand upon its implementation into the state of Delaware. By using the data collected by Manson and Associates, our team was able to identify an optimal selling price, total fixed costs, estimated variable costs, the breakeven point in units and dollars, breakeven market share, as well as an overall profitability analysis for 6-pack sales as well as keg sales.
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.
In deciding to invest the funds Larry would always “not know”. He will “not know” if he had a real opportunity or not to be an entrepreneur and operate his own small business. If Larry chooses the third option, that is, to continue with graduate school and the use of Manson and Associates he would be able to attain his goal of receiving his MBA sooner as opposed to later. At the end of the study he would also have the pertinent information available to him that would help him on deciding if operating a Coors distributorship is the best decision for him and his family at this time. If he chooses this option because of limited funds he has to be selective on what research should be conducted. With the pressures of his studies and a deadline that is fast approaching Larry may not select the research that would provide him with the necessary information to make the correct decision. The use of Manson and Associates to conduct the study does not automatically translate to a study in which the end results would be in Mr. Brownlow’s best interests. At the end of the study he could very well be out of fifteen thousand dollars ($15,000.00) and not choose to become a Coors distributor.
Coors started when Adolph Coors came to America in 1873, as a stowaway on a ship, and opened The Golden Brewery in Colorado with a partner, whom he later bought out in 1880. In 1884, Coors patented a corking machine and bottle washer for the bottling of their beers. The next year, Coors began its first recycling program by offering 45 cents for twelve empty quart bottles. Coors also won its first national brewing competition at the Chicago World’s Fair
Adolph Kohrs came to the United States as a penniless immigrant from Germany in 1868, with the dream of becoming a brewer of the finest beer in the world. When he came to the United States he changed his surname name from Kohrs to Coors. In the beginning years Coors worked his way to Denver, Colorado with a railroad job. Once he arrived in Denver, Coors purchased a partnership in a bottling company and, by 1872, was the sole owner. Although he was the owner of a successful business, Coors still dreamed of becoming a brewer. One day, during a walk around Golden, Colorado, he came across the rich Clear Creek valley, east of town. Bubbling up from the
Consumers will only be willing to purchase their beer if they see a clear and distinct value gained from doing so. If Narragansett doesn’t maintain the value of their beer trough product features, customer service, and complements then people won’t be willing to but it. In addition, they must remember to keep their costs low. Rising costs lead will lessen the economic value created and reduce the profit margin. The value created will then be negated since the costs will have risen and then they would not be differentiated from their competitors
In this case an analysis of the Adolph Coors Brewery will be made, to see what the competition is like within the industry, what are the company’s strengths compared to their competitors. What are their weaknesses and
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This report will provide an industry analysis for the beer brewing industry, discussing the attractiveness of the industry in regards to sustainable profitability and investment risk. First, we will start with an introduction to familiarize you with the three-century old beer brewing industry. We will discuss the ins and outs of the brewing industries operations, along with various industry products. We will analyze historic growth and earnings and make predictions for the next two years.
The following is the complete transcript of a speech given by Shirley Richard, director of corporate communications, at the International Association of Business Communicators annual conference on May 12, 1983.