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South Delware Coors Inc

Autor:   •  March 30, 2011  •  Case Study  •  1,067 Words (5 Pages)  •  1,622 Views

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In 1873, Coors Inc. was founded by Adolph Coors in Golden, Colorado. The brewery has grown to become the fourth largest beer seller in the United States. It is a family owned operation that lives by their operating philosophy "hard work, saving money, devotion to the quality of the product, caring about the environment, and giving people something to believe in." This philosophy helps consumers relate to Coors and what they stand for. Coors is a nationally recognized name in the industry to retailers and consumers for its high quality brand.

Currently, there are only two distributors in the state of Delaware and there is an opportunity for Larry Brownlow to invest in a distributorship in south Delaware covering two county areas. There are current retailers in the targeted area that have shown an interest in carrying the product. This indicates that there is a demand for Coors products and a brand awareness of the brewery.

Competitors of Coors include existing beer and alcohol manufacturers, potential new entrants, and substitute products that are available to the market. Substitute products include local breweries, wine, hard liquor, and other alcohol products. Competitors have name and brand recognition, loyalty, marketing, etc. already in place and relationships with retailers and consumers in the area. Consumers of alcoholic beverages include supermarkets, taverns, restaurants, gas stations, distributors, wholesalers, drug stores, and the corner market. A strong relationship will have to be developed with these areas retailers in order to obtain shelf space. Providing a high quality product at a great price, knowing his consumers preferences and tastes, sales data in the areas, and how his competition is doing will bring Larry success if he decides to invest.

Coors beer requires constant refrigeration to maintain its superior quality and facilities are required to maintain proper temperatures. They are unwilling to compromise in the high quality of its offerings to be one of the leaders in the beer industry. Coors also requires aluminum can recycling equipment to promote environmental concerns for the community. The marketing strategies using television, radio, magazines, and billboards keeps Larry from spending money on advertising. Both suppliers and consumers know the product well and expect a high quality product. Larry has the motivation, drive, and the initial investment in the distribution center from his trust fund.

There are several weaknesses that Larry has run into. He has no prior managerial experience or ownership in his career, he is still in graduate school, he has limited time, and funds available. Larry only has $15,000 available for research which limits the amount of research he can get to make an informed decision on whether to invest or not. He has to decide which research is the most vital for his decision and what research he can do on his own. Larry needs to review all available

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