Market for Coors in South Delaware Essay

Market for Coors in South Delaware Essay

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Q1). Currently, there is an opportunity for owning a Coors Distributorship in the southern Delaware counties of Sussex and Kent. Coors is a well-known brand name nationally, and retailers in the targeted area are willing to carry the product, which is an indication of pre-existing brand awareness and demand for Coors. It was necessary to obtain a feasibility study to project a possible profit or loss and $800,000 dollars will be needed for the initial investment. We believe the following decision criteria should be embraced by Larry to make his decision.
Market Share - Since Coors will enter this market area for the first time, it is believed that market share will continue to grow as the brand becomes established over time and market share percentage should meet or surpass company market share percentage of 8.7% - 8.9% in the next three years.
Larry Brownlow -Although Larry has many alternatives, (conduct no research, continue graduate school, invest trust money, conduct own research following completion of MBA, hold off on MBA to do research presently), obtaining his degree seems to be of utmost importance, as well as achieving success, sooner rather than later, in a self-owned business.
Purchasing Research – Purchasing research may be costly, but the knowledge and insight it will provide is paramount. While Larry could surely conduct his own secondary data research for less than $15,000, a busy schedule and time constrain him. See research purchased in Q3.
SWOT Analysis - The review of internal and external information provided by a SWOT analysis would provide Larry with information needed to make his decision.
• Owner has an MBA. ...

... middle of paper ... he only has to acquire a 6.31% market share to break even. We feel that making the investment is the best option for his future.

Overall Evaluation
The investment is an excellent option because the probability of profit is very high. Based on our Pro-forma Income statement, profit will be substantial and will increase each year even after losing .2% of market share. Pessimistically, the market share to break even is very generous making 2.5% room for error if needed when tapping into a brand new market. The ability to make a high market share in the southern part of Delaware would be very substantial. Because it is a beer perceived to be higher class (study H) than its competitors, it will be introduced into a brand new market.

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