What research should be conducted by Manson and Associates to allow Larry Brownlow to estimate the feasibility of a Coors beer distributorship in Delaware and why?
Would you recommend a go/ no go decision by Brownlow regarding his application and why/why not?
A.Strategic issues and problems
Larry Brownlow is considering whether or not to apply for the distributorship of Coors in South Delaware. Coors started as a small brewery back in 1873 and has since grown to become the 4th largest seller of beers in the country. Coors focuses on high quality beer which is well known both to its suppliers and to its consuming public. Larry Brownlow is 29-year old and just completing his MBA studies, he also has $500,000 held in trust to be dispersed when he reaches 30 years. So the timing is very good for Larry and he is also keen to start his own business. Larry has contacted Manson and Associates who carries our feasibility studies and general research. They have put together a formal research proposal (Exhibit 1 on pages 130 and 131). The hard choice is now for Larry to decide what research should be conducted by Manson and Associates to allow him to estimate the feasibility of a Coors beer distributorship in Delaware. Secondly, this case study will lead to the decision whether or not to apply for the distributorship.
B.Analysis and evaluation
I have recommended Larry Brownlow to purchase all the studies except Study G, Consumer Study. Study G is very expensive at $ 6,000 and would not allow us to purchase other very relevant information on the market size and retailer study. It is also expected that a general view towards Coors beer from the consumers will be reflected in the view and intention to stock and sell Coors beer by the retailers. Purchasing all studies except G gives Larry total expenses of $ 12,549.50 which is well within his budget of $15,000 for feasibility research and should...