b. Strategic Marketing Issues
i. The product is an older product and may be seen as uncool and less attractivethis too could affect sales. ii. The price may affected by the strict and extensive brewing and packaging processcans only and a special refrigeration process. iii. The advertising or promotional slant of the product may be successful as Coors was the first amongst all breweries to implement a mandatory recycling program. iv. Identifying the target markets could be easy as the product is established and popular in adjacent states.
v. Some strategic marketing issues are ranking in sales compared to other brandsCoors ranks fourth which is an indication that the beer may be in maturity stage from a product life cycle perspective. This would mean success could be short lived if decline is sooner than later.
c. Finance Issues
i. $500,000 trust left to Larry (Larry's money) would be used to finance the business deal. ii. $400,000 line of credit would be extended to Larry for business from bank. iii. $400,000 from family members for …show more content…
Low financial estimates such as salary estimates.
3. SWOT Analysis
a. Strengths- It is a strength to the product, company and distributor that they're penetrating a new market in Delaware. Another strength is that there will only be two distributors in the statemore market share, less to split.
b. Weaknesses- Coors ranks fourth and may be in maturity on the way to decline stage in product life cycle. Consumer perception that company is anti-union makes for bad PR and possible obstacles in sales and community support of product
c. Opportunities- Due to popularity in neighboring states, there is an opportunity to improve ranking in sales in Delaware through residual or word of mouth influence. There is an opportunity for Larry Brownlow's distribution company to be successful and bring jobs to Delaware.
d. Threats- The product could slip in sales rankings. The other Coors distributor could be more successful and procure more accounts, more of the market share than Brownlow's company procures.
4. Alternative Courses of Action
a. Brownlow could continue with the research project and make a decision to move forward to apply for distributorship based upon the results provided by Manson