COORS CASE STUDY Q&As
I. Evaluations of Coors’s competency in different stages of development
Super Regional Brewer to National Brewer:
* Bounded conservative family company with all board members plus 5 directors insiders. Later followed by more open minded management such as issuing stocks for outside financing, changing policy towards minority, * Traditional strengths in production; 70 days aging of its beers compared to other brewers. Also enjoyed good profit margins during the time of non competitiveness. * Controlled production costs by brewing a single kind of beer. This later changed to segmentation by new products launches such as silver bullet; light beer consisting of exactly the same ingredients only with lower amounts which in fact was a more profitable. * Intensified marketing of Coors. The advertisement cost per barrel was higher than any other. The marketing style changed focusing to product quality and differentiation as trying to be a national brewer in following years. * In producing inputs Coors had stressed quality and self-reliance. Held the rights to acquire water in territory. Made its own malt under long term contracts with 2000 farmers. * Built its own malting equipment, 90% of brewing equipment, 75% of packaging equipment and tried to be self-sufficient in energy by developing its own coalfield. * Super regional manufacturer localized in a area of short fall in supplying the demand. Later this has turned into search for new plant need after penetration of other brands into the territory of their control. * Capacity utilization rate slightly higher than other brewers with multi plants. * Coors being the only brewer which was not unionized.
* Coors’s technology such as producing first cans
* Domination over resale channels, force them to carry its brands exclusively, prohibit to cut down prices, ensure them keep products in certain conditions and destroy any products after 60 days...
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