Coors Delaware Case

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To: Larry Brownlow From: VCU302 Marketing Consulting Date: 9-18-13 Subject: The South Delaware Coors Distributorship Venture Overview The following memo will address the issue facing Mr. Brownlow regarding the viability of starting a distributorship with Coors Brewing Company with this limited experience and time restraints. Our team will also discuss which research studies are necessary for Mr. Brownlow to purchase given his $15,000 research budget. Our team recommends that Mr. Brownlow purchase the distributorship based on research and data gathered. Recommendations Our team recommends the following actions for Mr. Brownlow: Accept the distributorship Purchase studies D, E, F, G, H, and I Rationale 1) Accept the distributorship -- Appendices A-D Our team recommends that Mr. Brownlow purchase the Coors Brewing Company’s distributorship. Mr. Brownlow will need to sell $391,304.35 or 69,669 gallons in order for him to break-even (see appendix D). Average sales for our competitor’s wholesalers in the area was $5,529,775 in 2000 (see appendix C). This would suggest that Mr. Brownlow will be able surpass the required break-even amount easily. Manson and Associates’ Study D shows evidence that Mr. Brownlow will be able to meet his break-even in upcoming years as the number of licenses are predicted to increase in the upcoming years. For the recommended price point that it is suggested as $3.29 wholesale for a 6-pack or $5.82 wholesale for a gallon (Study I). Consumer and Retailer studies conducted by Manson and Associates show that Coors is viewed at a slightly higher price point than Mr. Barlow’s main competitors, Budweiser, Miller, and Miller Light (Studies G & H). Our team suggest that the price be on par with those competitors to raise the number of consumers who are willing to try Coors. As shown by Manson and Associates’ Study

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