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 …show more content…
Study G costs $6,000. Study H is a retailer study that studies potential retailers in the Delaware area and looks at past sales and experiences. This study is important to consider because a retailer must actually sell the beer, rather it sit on the shelf and waste money. Study H costs $4, 800. The final study provided by Manson is Study I. Study I looks at prices of competitors. This study is important because it analyzes what the right price to charge is for Coors in Delaware. Study I costs $2,000.
Larry Brownlow is faced with the challenging decision of whether or not to invest in a Coors beer distributor in southern Delaware. He must first have a thorough understanding of the potential buyers of Coors beer in southern Delaware in order to assess the potential profitability of a distributor in this market. Mr. Brownlow should purchase Manson and Associates performance Studies A, C, E, F, G, and I. These studies will best describe the preferences of the southern Delaware beer consuming population. These studies will also indicate the feasibility of a Coors beer distributor in South Delaware. The total cost of these studies is $11,249.50. This leaves Larry with $3, 750.50 to invest elsewhere.
Study A describes the consumption of beer for Delaware and will help to forecast how much the distributor will need to supply in order to