Essay About Market Research And South Delaware Coors

South Delaware Coors
Market Opportunity AnalysisSession OverviewFirms and entrepreneurs often have to consider whether a particular opportunity in a market is worth the risk of the required investment.  In this class we look at how to conduct this kind of analysis.  Market research and financial data together help managers decide if what customers want and what the company can provide overlap enough that customers can receive value and the company can make money.  ReadingCase: South Delaware Coors (in coursepack)Case AssignmentLarry Brownlow is considering whether to apply for a Coors beer distributorship covering two counties in southern Delaware.  This will give Larry the exclusive right to set up a wholesaler selling Coors brand beer to various retail outlets in those counties.  In less than six weeks, Larry has to decide whether to apply to Coors for the distributorship, so he has contacted a market research firm, Manson and Associates, regarding what research could be collected within this timeframe to help him make his decision.  The research Manson and Associates proposes, however, will cost more than the $15,000 Larry has to spend.  Larry must decide which research to purchase so that he will make the most informed decision possible about the market potential for Coors and the economic feasibility of a Coors wholesaler in South Delaware.Discussion Questions:What information does Larry need to know to forecast the potential market for Coors beer in South Delaware?What information does Larry need to know to forecast the economic feasibility of a Coors wholesaler in South Delaware?  Which market research studies should Larry buy given his budget?  Notes/Tips”Potential market” estimates how much Coors beer might be sold in South Delaware.  How much demand for beer is there in South Delaware, and how much of that demand might Coors reasonably capture? “Feasibility” examines whether Larry can make money in a business selling that amount of beer.  Consider both the revenues Larry will gain and the costs he will incur.  Will he breakeven?  Will he make a reasonable return on investment?If you had the results of a given study, how would they help you estimate market potential and feasibility?”On-premise” means the beer will be consumed on the premises, e.g., in a bar, a Veterans hall, or a Fraternal order/club.  “Off-premise” means the beer will be consumed elsewhere, and so includes sales at liquor stores and similar retail outlets.