South Delaware Coors Case
Problem Statement:
Larry Brownlow must decide what type of research to utilize from the Mason & Associate study to determine the market potential for a Coors Distributorship in two counties in Southern Delaware.
Recommendations:
We recommend that Larry choose the following research studies to aid his decision to move forward with the Coors Distributorship. Since Larry as a budget of $15,000 the following recommended studies to use total $12,500, which will still leave him $2500.
Study A: National & Delaware per-capita beer consumption for 88-92 & Study B Population estimates for 86-96 for two Delaware Counties
These two studies can be used together to look at how many gallons of beer will be consumes by the 21 & over population in the two counties. If the year 1990 is focused upon, the total 21 & over population equals 160,500 people multiply that by the 39.4 gallons of beer consumed by the 21 & over population in Delaware and you will find that about 6.3 million gallons were consumed in the two Delaware counties in question.
Study C: Estimates of Coors Market Share
Study C should be used because it allows Larry to look at the overall market share of the Coors product line. Coors has had steady market share over the last five years, it has only fluctuated between .1-.2%.
Study E: Beer taxes paid by beer wholesalers in the market area, 1988 and 1989
Study E can be used to show Larry how much money can be made off beer taxes. If all six wholesaler’s beer taxes were combined 1988= $288,000 and 1989 = $306,000. By using these numbers and dividing them by the 6-cent beer tax per gallon it yield the total consumption in the mark ...