Preview

Coors Case Analysis

Satisfactory Essays
Open Document
Open Document
869 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Coors Case Analysis
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

You May Also Find These Documents Helpful

  • Good Essays

    Miller v. Bud

    • 458 Words
    • 2 Pages

    In 1982, AB launched Bud Light, which was extremely successful because (1) firstly, it was targeted at the core users of light beer i.e. 25-44 year old upscale professionals. Lite on the other hand had chosen to stay off-strategy and continue their old campaign targeting 21-34 year old males with blue-collar occupations. (2) Secondly, it positioned itself as the light beer with superior quality for this target or upscale professionals. Budweiser’s brand equity of being a superior beer and the Clydesdale spot served to reinforce their positioning.…

    • 458 Words
    • 2 Pages
    Good Essays
  • Good Essays

    2. How did the beer industry become oligopolistic? What longer-term processes appear to be at work? Can one apply the industry life cycle to the beer industry?…

    • 572 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Yuengling Swot Analysis

    • 1157 Words
    • 5 Pages

    A. 180 years of operation. This is one of their most compelling strengths. Being in operation for almost 200 years show the dedication the family has for the beer they produce and shows the amazing level of management they have. Just the fact that they have overcome hardships such as the great depression and the prohibition shows how powerful their management is.…

    • 1157 Words
    • 5 Pages
    Good Essays
  • Good Essays

    This would allow Coors to differentiate their product in a new way, while minimizing associated costs. Coors would still be required to integrate economies of scale and adjust “Rocky Mountain” water to be more inclusive—“Pure American Spring Water.” By using a new marketing slogan and using “locally supplied” ingredients, Coors could continue differentiating as a proud product using high quality ingredients and processes, only at a lower distribution cost. Keeping qualities of a differentiation strategy establishes higher entry barriers from customer loyalty and provides a cushion for profit margins. This would also help decrease supplier power from the integration of economies of scale and remove the associated operational risks. A combined strategy will allow Coors to adapt and grow in the future, helping to ensure the survival of the brewery.…

    • 1261 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    The Boston Beer Company

    • 4185 Words
    • 17 Pages

    Overview The Boston Beer Company has had amazing success in its transition from a small scale microbrewer to a large scale national brewery. Almost all of the company’s success is due to the Samuel Adams Lager product line, which has hardly changed from the founding of the company in 1984, to the IPO in 1995, to the present day. In fact, much of the appeal of Samuel Adams comes from its microbrew image and the founder, Jim Koch’s, commitment to the brewing process and a premium beer. In recent years, however, the company has implemented a new strategy for growth which has included introducing a light beer that will have more mainstream appeal. While this has increased profits for the company, it has also left the company vulnerable to entry by diluting its brand name. For this reason, the company’s strategy for the immediate future has to make a significant shift, from a strategy of growth to a strategy of protection. It must focus on maintaining its current profits by preventing entry both from small breweries looking to copy the BBC’s strategy and from large breweries looking to use their expansive resources to steal some of BBC’s market share.…

    • 4185 Words
    • 17 Pages
    Powerful Essays
  • Powerful Essays

    Delaware Coors Case

    • 1285 Words
    • 6 Pages

    The purpose of this analysis is to evaluate the potential profitability and market share of the Coors brand upon its implementation into the state of Delaware. By using the data collected by Manson and Associates, our team was able to identify an optimal selling price, total fixed costs, estimated variable costs, the breakeven point in units and dollars, breakeven market share, as well as an overall profitability analysis for 6-pack sales as well as keg sales.…

    • 1285 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    South Delaware Coors

    • 1256 Words
    • 6 Pages

    Coors brewing company produces a high quality produce and fills a void within the South Delaware market. The venture provides a unique opportunity to introduce this product and to expand throughout the market area. Market research indicates that Coors would be very well received within the market area and would prove to be an exciting opportunity for investment.…

    • 1256 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    3) Through economies of scope, dominant concentrate producers were able to efficiently introduce brand extensions by minimizing costs per unit manufactured. These successful brand extensions resulted in reduced shelf space for new soft drink entrants.…

    • 990 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    South Delaware Coors

    • 1201 Words
    • 5 Pages

    The purpose of this case is to analyze Larry Brownlow’s decision to invest and operate a Coors Distributor in south Delaware. Coors Beer is located in Golden, Colorado and has many distributors that are monitored closely throughout the country. Coors is known for its dedication to quality by suppliers, wholesalers, and its customers. Not only does Coors monitor wholesalers and distributors, the company also requires that the wholesaler and distributor us recycling equipment. Mr. Brownlow had $15,000 to research the decision and decide if he should own the South Delaware Distribution Center. $800,000 is needed for initial investment of the distributor. Since Coors will enter this area for the first time, it is believed that market share will continue to grow as the brand becomes established over time.…

    • 1201 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    New Belgium Case Analysis

    • 2419 Words
    • 10 Pages

    The New Belgium Brewing Company is one of the top three craft beer breweries in the nation. It has experienced solid growth from its original entry as a niche marketer to a brand that is now distributed across the country. Much of New Belgium’s success is a result of a well-developed positioning strategy that promotes the company’s culture as much as its product. Not coincidentally, New Belgium’s target market chooses brands like Fat Tire because of both the company’s culture and its product. Our evaluation of the two New Belgium cases indicates that the craft beer industry remains an attractive investment for the company, particularly because of its specific capabilities and resources. The cases also suggest that a conservative growth outlook has the greatest probability of maintaining an acceptable level of profitability without sacrificing the company’s mission and core values. Finally, New Belgium’s positioning, particularly as it’s exemplified by the Fat Tire campaign, is a sustainable one for both current and future brands, though deliberate adaptations will be necessary as New Belgium expands into new markets…

    • 2419 Words
    • 10 Pages
    Better Essays
  • Powerful Essays

    Coors Case

    • 14894 Words
    • 60 Pages

    The company was founded in 1873, in Golden, Colorado USA; the company was named after its founder Adolph Coors Sr. The Company only sold premium beer in the state of Colorado to begin with, but expanded in 1929 into the State…

    • 14894 Words
    • 60 Pages
    Powerful Essays
  • Better Essays

    The idea to continue to grow in the already overcrowded market of specialty brewers is critical to the success of this company. There are currently over thirteen hundred micro-brewers in the United States with The Boston Beer Company ranked number one in overall sales and sixth in the overall domestic market. Currently the Heineken and Corona brands rank ahead of Samuel Adams in this category in the world market. In the near future the company is leaning towards owning more breweries and cutting back on the contract brewers. Currently the different cost associated with contract brewing involves raw materials, excise taxes and deposits for pallets and kegs and specialized equipment required for beer production. Brewery ownership would involve significant capital investment which could easily exceed $50 million for the combination of purchase, expansion and improvement, or for original construction.…

    • 1351 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Coors Brewing Company

    • 4078 Words
    • 17 Pages

    By the end of 1997, Coors had finished the implementation of a three-year computer-integrated logistics (CIL) project to improve its supply chain management. Coors defined its supply chain as every activity involved in moving production from the supplier’s supplier to the customer’s customer. (Since by federal law, Coors cannot sell directly to consumers, Coors customers are its distributors whose customers are retailers whose customers are consumers.) Coors’s supply chain included the following processes: purchasing, research and development, engineering, brewing, conditioning, fermenting, packaging, warehouse, logistics, and transportation.…

    • 4078 Words
    • 17 Pages
    Powerful Essays
  • Satisfactory Essays

    Strengths:The largest producer; Improved productivity; strategic with foreign producers; Two independent distribution Weaknesses:Low volume of sales of nonbeer products; Antitrust restrictionOpportunities:Positive volume growth of beer sales; New and attractive market Threats:Rising foreign firms’ competition; Tariffs elimination; Rising imported ingredients cost…

    • 1110 Words
    • 5 Pages
    Satisfactory Essays