Coors Case
A. Consumer/Industry Analysis:
Using the Consumer Questionnaire Results, 62.1% of consumers surveyed has consumed Coors in the past; also 48.8% liked or strongly liked Coors. We also learned in this questionnaire that 65.2% bought their beer from supermarkets. From this consumer analysis, Larry could invest in Coors and make his main availability of product at supermarkets. According to the Retailer Questionnaire Results, Coors has the same taste as Miller and Miller Lite, but it is more expensive than the other brands of beer sold. B. Market Share:
Using the Table C: The Market Share estimates for a five year span all stay at a constant 8.7-8.9%, with consideration there are only a select few brands that Coors is competing with this should not be a problem with growth in the future. C. Investment:
Total investment would include the inventory, equipment, warehouse, and land is estimated at $800,000. Larry could also use his trust fund if needed, $500,000 to start an Owner’s Equity Account. D. Cost: (Fixed, Variable, Prices):
Fixed Cost for Larry’s new adventure would be $240,000 that includes salaries, equipment depreciation, warehouse depreciation, utilities / telephone, insurance, maintenance / janitorial and miscellaneous expenses. Variable cost would depend on the production level.
As for Prices, it is perceived that Coors is high priced but if they were to lower the price to the price of Michelob, there could be an increase of sales.
E. Go or No Go:
I would have to say Larry should go for Coors
Using the Consumer Questionnaire Results, 62.1% of consumers surveyed has consumed Coors in the past; also 48.8% liked or strongly liked Coors. We also learned in this questionnaire that 65.2% bought their beer from supermarkets. From this consumer analysis, Larry could invest in Coors and make his main availability of product at supermarkets. According to the Retailer Questionnaire Results, Coors has the same taste as Miller and Miller Lite, but it is more expensive than the other brands of beer sold. B. Market Share:
Using the Table C: The Market Share estimates for a five year span all stay at a constant 8.7-8.9%, with consideration there are only a select few brands that Coors is competing with this should not be a problem with growth in the future. C. Investment:
Total investment would include the inventory, equipment, warehouse, and land is estimated at $800,000. Larry could also use his trust fund if needed, $500,000 to start an Owner’s Equity Account. D. Cost: (Fixed, Variable, Prices):
Fixed Cost for Larry’s new adventure would be $240,000 that includes salaries, equipment depreciation, warehouse depreciation, utilities / telephone, insurance, maintenance / janitorial and miscellaneous expenses. Variable cost would depend on the production level.
As for Prices, it is perceived that Coors is high priced but if they were to lower the price to the price of Michelob, there could be an increase of sales.
E. Go or No Go:
I would have to say Larry should go for Coors