South Delaware Coors Case

Topics: Coors Brewing Company, Fixed cost, Costs Pages: 4 (1426 words) Published: February 21, 2011
Case #1 South Delaware Coors
The Coors Brewing Company is the fourth-largest brewer in the United States. Coors is also renowned for operating the Golden, Colorado brewery, the largest single brewery facility in the world. When Larry Brownlow wanted to open a new Coors beer distributorship for a two-county area in southern Delaware, he was faced with the decision of which research he needed Manson and Associates to complete for determining the market potential of a two-county area in southern Delaware. Brownlow was fully behind the building of a distributor in Delaware and quit his sales job and used the money from his annual trust income. Brownlow and his wife believed this was the best investment because of Coors history and popularity with many consumers in adjacent states to Delaware region.

Although Brownlow believed Coors was the best choice, he still faced a few problems. There was the issue that Coors’ corporate management was seen by some consumers to hold antiunion beliefs due to a labor disagreement at the brewery some time ago. Another issue Brownlow faced was the consumer perception that the brewery was insensitive to minority issues, primarily unemployment and distribution. The result of these attitudes, along with other aspects of consumer behavior in the Delaware area meant that Coors’ sales would depend greatly on the efforts of the two wholesalers planned for the state.

Due to the pressing issues of consumer behavior, Brownlow hired Manson and Associates to do some market research for him in order to see if these perceptions still linger. Brownlow chose Manson and Associates for their reputation for quality work, as well as past projects. Larry contacted Manson and Associates in early January and they met and discussed the Coors opportunity and appropriate research. Once Brownlow received the formal research proposal, he faced the challenge of choosing the more relevant research from the proposal, because he could not afford to pay for...
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