Executive Summary

Topics: Marketing, Income statement, Tax Pages: 22 (3763 words) Published: October 12, 2010
Table of Contents

Executive Summary1
Company Description2
Strategic Focus2
Goals of Market Research3
Secondary Data3
Primary Data3
Situation Analysis3
SWOT Analysis4
Industry Demand Analysis4
Competition Analysis6
Market Share Projections6
Pessimistic Projection6
Optimistic Projections7
Operating Analysis10
Fixed Expenses11

Executive Summary

Larry Brownlow is investigating the feasibility of owning and operating a Coors distributorship in the Kent and Sussex counties of Delaware. It was necessary to outsource his research to Manson and Associates. The first decision to be made was which primary and secondary data was valuable to his research. With the acquired data, his second objective was to decide if the target market could support another beer distributor.

After analyzing the data, Larry found that there was a significant consumer and retailer interest in the Coors’ product. Larry projects the market share to be higher in Southern Delaware than Coors’ average of 8.8%. The beer taxes paid by wholesalers in the target market area has increased 6.3%. This directly relates to the expansion of the market, an increase in gallons sold.

Based on South Delaware Coors, Inc. optimistic and pessimistic proforma income statements, this is a viable and profitable business opportunity.

Company Description

South Delaware Coors, Inc. is the entrepreneurial brainchild of Larry Brownlow, an expectant graduate of a MBA program. Brownlow has always believed “the best opportunities and rewards come from smaller self-owned businesses” such as the Coors distributorship. Larry has $500,000 from a family trust and wants to invest the money in a good business that will provide for his family as well as remove him from the day-to- day torture of a corporate giant. Coors Inc. has found there is a need for a distributor in the Kent and Sussex county areas of Delaware. The company has decided to open the business opportunity to everybody through an application process. After all applicants are reviewed, Coors will select its new business associate. Due to time constraints, Larry has hired Manson and Associates, to prepare a research proposal. He will use this information to determine the feasibility of a Coors distributorship in the two county regions of South Delaware.

Strategic Focus


South Delaware Coors, Inc.’s mission is to become the number one Coors beer distributor in South Delaware capturing a market share of 12% or more within the first three years while continuing the tradition and values of its parent company.

Goals of Market Research

Larry realizes the need for good primary and secondary market research. Primary research is data that has been collected for a specific business problem. Secondary research is data that is collected for another purpose but can be helpful in other areas. Larry knows it is important to have some good secondary research data as a benchmark to compare to the more specific primary research data. After meeting with Manson and Associates, Larry was presented with nine different research studies at a cost of $18549.50. He could not afford all of the proposed studies with his limited budget of $15,000, so he reviewed each one to determine if they would be helpful. In the end, Larry purchased the following studies for the price of $13,000.

Secondary Data

Table CEstimates of Coors' Market Share for 1990-1995, $2,000 Table EBeer Taxes Paid by Wholesalers in the Market Area, 1988 and 1989, $200

Primary Data

Table GConsumer Study, $6,000
Table HRetailer Study, $4,800

Situation Analysis

The first step...
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