South Delaware Coors Inc.
Larry Brownlow was presented the opportunity of a lifetime to have distributorship of Coors in south Delaware. Brownlow was nearing competition of his MBA when this arose and he has high hopes it could be a great investment. Brownlow using personal money available to do research handed the problem to professionals Manson and Associates. The budget for research was capped at $15,000 and Brownlow needs the results of research by February 20, 2000. This will allow Brownlow to decide his investment by a March 5th application deadline. A large factor to consider for Brownlow is his trust of $500,000 that becomes available in July on his thirtieth birthday. The decision Larry must make is what research will be most useful to his decision, because $15,000 will not buy everything Manson and Associates are offering.
Market size, industry information, and consumer behavior are currently Brownlow’s missing puzzle piece. Such data can be gathered through the services of Manson and Associates that have been hired by Brownlow. Brownlow will only then be able to decide on his decision to invest in distributorship. Larry Brownlow is nearing completion of his MBA and even still is a successful hard working financially stable family man. Likely to gain much knowledge and experience through his MBA and past ventures Brownlow is determined to succeed. Coors’ philosophy is simply, “hard work, saving money, devotion to the quality of the product, caring about the environment, and giving people something to believe in.” Brownlow exemplifies these values in his life and this could be a valuable connection. Coors’ headquarters and majority of production are located in Golden, Colorado. Two types of research exist as options for Brownlow. He is presented with an array of studies in which he can choose to be most fitting for his analysis as an investor into the distributorship. The first type of research is based on secondary data and computer models. The second type of research is based on primary data that would be gathered by Manson and Associates. Both sets of data will have valuable information for Brownlow to consider. The research options are as follows: ---Stage One Research---
Study A: National and Delaware Per Capita Beer Consumption for 1998-2002. Description: Per capita annual consumption of beer for the total population and population age 21 and over in gallons is provided. Source: Various publications, Manson computer model. Cost: $1,000 Study B: Population Estimates for two Delaware Counties in Market Area. Description: Annual estimates of total population and population age 21 and over. Source: U.S. Bureau of Census, computer model. Cost: $1,500 Study C: Coors market share estimates for 2000-2005. Description: This data will be projected from Coors’ nationwide experience. Source: Various publications, Manson computer model. Cost: $2,000 Study D: Estimates liquor and beer licenses for the market area, 2000-2005. Description: Projections of the number of on premise sale operations and off-premise sale operations is provided. Source: Delaware Department of Revenue. Cost: $1,000 Study E: Beer taxes paid by Delaware wholesalers for 1997 and 1998 in market area. Description: Beer taxes paid by each of the six presently operating competing beer wholesalers are provided. Source: Delaware Department of Revenue. Cost: $200 Study F: Financial statement summary of wine, liquor, and beer wholesalers for 1999. Description: Composite balance sheets, income statements, and relevant measures of performance provided for 510 similar wholesaling operations in the United States. Source: Robert Morris Associates Annual Statement Studies, 2000 ed. Cost: $49.50 ---Stage Two Research---
Study G: Consumer Study. Description: Study G involves 3 focus groups to comprise a questionnaire for 300 adult residents that will...
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