South Delaware Coors Inc. Case #1
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, that would help with his expansion of Coors beer. Manson gave Brownlow a choice of details regarding market research, market potential, financial statements, population statistics, and a retailer and customer questionnaire about Coors beer. It was then Brownlow’s decision to determine which information he wanted to buy from Manson’s research proposal, with only $15,000 in funds available.
Manson and Associates proposal included nine different research studies that would help Brownlow get the primary information he needed for establishing a distributorship in southern Delaware, but Brownlow could not afford all their research studies. The nine research studies added up to a total of $18,549.50, ranging in price from $49.50 to $6,000 for each study. The studies included: National and Delaware per Capita Beer Consumption (Study A), Population Estimates (Study B), Coors Market Share Estimates (Study C), Estimates Liquor and Beer Licenses for Market Area (Study D), Beer Taxes Paid By Delaware (Study E), Financial Statement Summary of Liquor, Wine, and Beer Wholesalers (Study F), Consumer Study (Study G), Retailer Study (Study H) and Survey of Retail and Wholesale Beer Prices (Study I).
These studies all...
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