...South Delaware Coors Case South Delaware Coors Larry Brownlow was just beginning to realize the problem was more complex than hethought. The problem, of course, was giving direction to Manson and Associates regarding which research should be completed by February 20, 1989, to determine market potentialof a Coors beer distributorship for a two-county area in southern Delaware. With data fromthis research, Larry would be able to estimate the feasibility of such an operation before theMarch 5 application deadline. Larry knew his decision on whether or not to apply for thedistributorship was the most important career choice he had ever faced. LARRY BROWNLOW Larry was just completing his M.B.A. and, from his standpoint, the Coors announcementof expansion into Delaware could hardly have been better timed. He had long ago decidedthe best opportunities and rewards were in smaller, self-owned businesses and not in the jungles of corporate giants. Because of a family tragedy some three years ago, Larry foundhimself in a position to consider small business opportunities such as the Coors distributorship. Approximately $500,000 was held in trust for Larry, to be dispersed when hereached age 30. Until then, Larry and his family lived on an annual trust income of about$40,000. It was on this income that Larry decided to leave his sales engineering job andreturn to graduate school for his M.B.A. У The decision to complete a graduate program and operate his own business had beeneasy...
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...$15,000 available for research purposes while the whole research needs $18,549.50 2. Cultural and social values Coors is very famous to the public with a good brand name. The consumption of beer products in Delaware counties is very important for decision making 3. Political and legal issues Coor’s corporate management was seen some customer to hold antiunion beliefs, and some other consumers perceived the brewery the brewery to be somewhat insensitive to minority issues 4. opportunities and threats in the environment The success of this business would depend highly on the two wholesalers in Delaware. Using aluminum can recycling equipment, Coors can attract customers who concern about protecting environment. B. Industry 1. Industry Coors brewery is the fourth-largest seller of beer in the country. They focus on the quality of their product, carrying about environment and giving people something to believe on 2. The Major competitors Competitors of Coors include existing beer and alcohol manufacturers in the country as well as foreign countries. There are a great number of substitute products available in the market. These include other beer products as well as wine, hard liquor, wine coolers, and other carbonated/malt alcohol products. It maybe has a new competitors coming into the industry but Coors has an exclusive formulation C. Organization 1. Objectives and constraints Larry’s main objective is...
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...Hudepohl Brewing Company Bob Pohl, age 32, was appointed general manager of the Hudepohl Brewing Company following the unexpected death of the company’s president in March 1980. Since 1975, Pohl had managed Hudepohl’s marketing response to rapidly changing conditions in the brewing industry. The death of the president, a relative, left Pohl as the only member of the founder’s family active in the day-to-day activities of the business. Pohl was optimistic about the company’s future despite Hudepohl’s recent disappointing performance. Since 1978 the brewery had been operating at less than 40% of its one-million-barrel1 capacity, and in 1978 the company had experienced the largest operating loss in its history—$538,000. After adjusting for gains on Hudepohl’s securities portfolio and a tax loss carryback, net income for that fiscal year was $95,161, down from $268,611 in 1977. After only three months as general manager, however, Pohl was predicting improved earnings in the near future. A 7% gain in sales during the first four months of 1980 seemed to confirm his expectations. Pohl felt that by 1983 Hudepohl would achieve a 10% growth in sales. Background on the Company Based in Cincinnati, Ohio, Hudepohl was the twentieth largest brewery in the United States. (Financial information is presented in Exhibits 1, 2, and 3.) Ownership and Organization Hudepohl’s board of directors consisted of seven members, all descendants of founder Louis Hudepohl. Chairman John Hesselbrock...
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...it could relate to a country or organization culture, as people do not born with culture but they learn it through values, norms, traditions, customs and beliefs. Therefore, any organization working in the field of the international marketing should take into account the local culture of the country in which it wish to market. Marketing managers should assess the cultural nature of an international market by using eight categories to analysis, which are language, religion, values, attitudes, education, social organization, technology and material culture, law-politics and Aesthetics. Many mistakes have been made in the past are related to language and translation, below are some examples: Product Slogan Translated From To 1 Coors Brewing Company (Beer) Since 1873 Canada Spain Turn it loose Suffer from diarrhea 2 USA Spain Braniff International Airways 1928-1982 Fly in leather Fly naked 3 Switzerland Italy Schwepps Since 1783 Tonic Water Water from the toilet 4 USA Africa Gerber Baby Food Since 1927 A picture of a healthy baby on the label of Gerber jars Africans was horrified as they assumed that Gerber was selling babies as food, instead of food for babies. 5 Japan France TOYOTA Since 1937 Introducing Model MR2 MR2 pronounced in French Merdè / Merdeux Which means crappy or very bad 6 USA Mexico Chevorlat Since 1911 ...
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...For the exclusive use of O. AL-REFAI Harvard Business School 9-388-014 Rev. June 23, 1992 Adolph Coors in the Brewing Industry "Rarely in Adolph Coors Company's 113-year history has there been a year with as many success stories as 1985." Coors's annual report for 1985 went on to cite records set by the company's Brewing Division. In a year when domestic beer consumption was flat, Coors's beer volume had jumped by 13% to a new high of 14.7 million barrels. And its revenues from beer had topped $1 billion for the first time in the company's history. The Brewing Division accounted for 84% of Coors's revenues in 1985, and over 100% of its operating income. Although Coors had diversified into several businesses, including porcelain, food products, biotechnology, oil and gas, and health systems, Chairman Bill Coors acknowledged that for the foreseeable future, the company's fortunes were tied to brewing. The strategy of the Brewing Division had changed drastically over the 1975-1985 period. The changes continued: in a decision that the company billed as "the most significant event of 1985 and perhaps our history," Coors announced plans to build its second brewery in Virginia's Shenandoah Valley. The first section of this case describes competition in the U.S. brewing industry and its structural consequences. The next two sections describe Coors's position within the industry, and the plans that it had announced for its second brewery. Competition in the U.S. Brewing Industry ...
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...Case Study: Adolph Coors Company Should Shirley Richard encourage or discourage the Coors brothers to go on “60 Minutes”. submit to an interview to booster Coors’ image. Public debate and media commentary can present new challenges for organizations that do not have a clear strategic response to those issues (Benn, Todd & Pendleton, 2010). It would be in the company’s best interest to get ahead of the negative press and defend itself against the allegations of racism, sexism, and other biases. If Coors were to refuse an interview it may look like they have something to hide or and it could to the company being judged more harshly. A company’s image in the media can make or break them. Therefore it is important for Coors to have a positive relationship with the media and feel comfortable granting them interviews in order to present the company in the best light possible. John 16:33 states, “I have said these things to you, that in me you may have peace. In the world you will have tribulation. But take heart; I have overcome the world.” The Coors brother that decides to represent Coors for the interview should be properly trained and coached in public relations and how to protect a company’s image. Proper research should be conducted prior to the interview to make sure that there are no contradictory remarks and all statements are an honest representation of the organization. False information given during an interview can further damage the company’s reputation and make...
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...34) Coors Ceramics Revamps Information Systems Coors Ceramics was spun off from the Adolph Coors Company in December 1992. Today, the company is one of the leading suppliers of ceramic materials and components to the semiconductor and laser industries and has developed a worldwide reputation for quality and precision. Coors' old information system took as long as two days to process new orders. Because of delays and inaccuracies in processing; there was no way a salesperson could track the exact status of a particular customer's order. With 1,500 orders coming in monthly, that was a huge problem. To compensate for the processing delays, Coors would produce more components than it had received orders for so that it could build up inventory to meet customers' desired delivery dates. Although it did help meet customer demand, this approach raised inventory levels, production costs, and overhead costs. Customer delivery was also a problem. The old system could track shipments only on a weekly basis. If a customer wanted an order on Monday, and Coors shipped it by the following Saturday, the system logged that order as being on time. When customers called to complain, the salesperson would get no valid data from the system other than an incorrect "shipped on time report". It was clear that improvements were needed; however, before investing in new information systems, Coors defined three key business goals that the new system must achieve: First, Coors had to...
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...Sex is everywhere. Sex is on television, billboards, magazines, radio stations, and basically anywhere you look and listen. Companies use sex to advertise so it is very hard for a person to avoid it. Sex appeal is used in advertising all the time, and people love it because according to Steel, 'sometimes people listen better with their eyes than their ears' (Steel 138). Sex in advertising is an effective technique so it helps companies successfully sell their products to the American public. Nevertheless, sex has to be directed at the right audience, and sold at the right places in order for it to work. Sex in advertising has been around for a long time now. A great example of sex in advertising is the Maidenform fantasy that happened over twenty years ago. It showed women in their Maidenform bras and had different schemes to each one. Maidenform was showing that if they wore this bra and look sexy they could be successful in their careers and leave their housewife lifestyle. These provocative advertisements made women feel sexy and convinced them to quit being just a housewife, which many of them were back then. Of course these ads brought some controversy, but when an agency is dealing with sex appeal in their ads it’s expected to be somewhat controversial as perceived by the society. This was a story of the past, what about sex in advertisement today? Many companies that use sex appeal in their ads today. For instance Victoria’s Secret is the top seller of lingerie. They...
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...The Coors Case Balanced Scorecard By the end of 1997, Coors had finished the implementation of a three-year computer-integrated logistics (CIL) project to improve its supply chain management. Coors defined its supply chain as every activity involved in moving production from the supplier’s supplier to the customer’s customer. (Since by federal law, Coors cannot sell directly to customers. Coors customers are its distributors whose customers are retailers whose customers are consumers). Coor’s supply chain included the following processes: purchasing, research and development, engineering, brewing, conditioning, fermenting, packaging, warehouse, logistics and transportation. The CIL project was a cross-functional initiative to reengineer the business processes by which Coor’s logistics or supply chain was managed. The reengineering project improved supply chain processes and applied information technology to provide timely and accurate information to those involved in supply chain management. The project objective was to increase company profitability by reducing cycle times and operating costs and increasing customer (distributor) satisfaction. The software vendor used for this project was the German Company Systems Application & Products (SAP), which provided the financial and materials planning software modules. The SAP planning software became Coors’s load configurator software, which takes distributor demand forecasts and the production schedule and...
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...Callie Gizicki November 22, 2004 Negotiation Styles Activity You are currently a sales representative for West Side Beer Distributors, and you have just received your new sales route. One of your biggest accounts that you must focus on is the B.O.B. The B.O.B has just hired Joe Smith, the new General Manger. His goal is to turn the company around and increase sales. He is in charge of the second floor which consists of two bars and is currently in the process of opening up a sport’s bar too. Sales have been low for the past three months. The draft beers include Miller Lite, Coors Light, Bells Winter White, Guinness, and Rolling Rock. They carry Bud and Bud Light in bottles but not on draft. There have been requests for it in the past but it has never been offered on draft. Advertisements and promotions are in desperate need. The new General Manager has managed at restaurants for the past 10 years and has been very successful. Your main goal is to replace Miller Lite with Bud Light on draft. However, you are not very familiar with Joe’s negotiation style since you have never met him before. This is a big account so you must be ready to sell him your product. Therefore you must be prepared for each one of the five styles. 1) Describe what Joe’s characteristics would be for each negotiation style and tell how you would adapt to it. Be sure to include what style you would use for each of Joe’s different styles. 2) Research your competition (e.g. Miller...
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...history, the Coors Brewing Company (Coors) has been a regionalized brewer within the United States, specializing in high-quality beer through by virtue of its source water selection, stringent production standards, and cold filtered brewing approach. As the company expanded its distribution to new markets within the U.S. in attempt to gain market share, it made a strategic decision to maintain a majority of its brewing operations at its primary production facility in Golden, Colorado. This decision was based upon the desire to preserve its core production strengths through close family control. However, as the company desires to expand its market presence beyond the U.S. boarders with a goal of becoming the 5th largest brewer by 2008, its historic approach to management and operations provides a detriment to achieving this objective. As seen by the on-going consolidation of top brewers within the beer industry, the competition is fierce as more brewers are competing within a global market with extended product lines and decreased profit margins. Question: How did Coors operating performance change relative to its competitors between 1970 to 1985? Why ? Performance improves from 1970 to 1977: Coors was extremely successful prior to 1977. Key to their strategy was a set of unique, cost specialized elements: geographic focus, low-cost production, a differentiated product, and market power over their distribution customers. By managing these aspects well, Coors achieved 21...
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...Adolph Coors in the Brewing Industry – Case Study By mid-1970, Adolph Coors Company was extraordinarily successful, posting year-to-year volume gains for the last 23 years and gaining a 16% Return on Sales at its height. However, between 1975 and 1985, performance declined greatly relative to the rest of the brewing industry. In the early 1980’s, Coors faced a key decision, whether to build a second brewery on the east coast. Would an additional brewery improve its position significantly? What else could Coors have done to improve their position? Could Coors have changed their strategy in order to take advantage of the changes in the brewing industry, or were they destined to be the victim of changes in the industry that they could neither control nor remedy? Extraordinary Success into the 1970s Coors was extremely successful prior to 1977. Key to their strategy was a set of unique, co-specialized elements: geographic focus, low-cost production, a differentiated product, and market power over their distribution customers. By managing these aspects well, Coors achieved 21.2% market share in their market, with the lowest relative amount of advertising in the industry. At the same time Coors’ low cost per barrel, at $29, was second only to Heileman Brewery. In spite of their low cost, Coors’ differentiated product allowed them to charge a premium over most of their competitors, giving Coors the highest profit margins in the industry, nearly twice that of their nearest competitor...
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...Sex is everywhere in our society. It is on TV, magazines, radio, billboards, and basically anywhere you look today. People cannot get away from sex in advertising because so many companies use it. Sex appeals are used in advertising all the time, and people love to look at it because 'Sometimes people listen better with their eyes' (Steel 137). Sex in advertising is an effective technique that is used today. It helps companies successfully sell their product in our market. Of course it has to be directed at the right audience, and sold at the right places in order for it to work. Sex in advertising has been around for many years now. Ever since the Maidenform fantasy over twenty years ago. Here is a great example of sex in advertising. It showed women in their Maidenform bras and had different schemes to each one. Maidenform were showing that if they wore this bra and look sexy they could be successful in their jobs and get out of the house. Basically these ads made women feel sexy, and more confident about their bodies. Quit being just a housewife, which many of them were back then. It was now ?The Maidenform Women. You never know where she?ll turn up? (Moog 109). The Maidenform bra ads symbolized the exciting but frustrating longings of the past (Moog 109). Of course this brought some controversy, but when you are dealing with sex appeal in your ads it?s kind of an automatic. That was then, what about now? There are many companies that use sex appeal in their ads today...
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...Sex is everywhere in our society. It is on TV, magazines, radio, billboards, and basically anywhere you look today. People cannot get away from sex in advertising because so many companies use it. Sex appeals are used in advertising all the time, and people love to look at it because 'Sometimes people listen better with their eyes' (Steel 137). Sex in advertising is an effective technique that is used today. It helps companies successfully sell their product in our market. Of course it has to be directed at the right audience, and sold at the right places in order for it to work. Sex in advertising has been around for many years now. Ever since the Maidenform fantasy over twenty years ago. Here is a great example of sex in advertising. It showed women in their Maidenform bras and had different schemes to each one. Maidenform were showing that if they wore this bra and look sexy they could be successful in their jobs and get out of the house. Basically these ads made women feel sexy, and more confident about their bodies. Quit being just a housewife, which many of them were back then. It was now ?The Maidenform Women. You never know where she?ll turn up? (Moog 109). The Maidenform bra ads symbolized the exciting but frustrating longings of the past (Moog 109). Of course this brought some controversy, but when you are dealing with sex appeal in your ads it?s kind of an automatic. That was then, what about now? There are many companies that use sex appeal in their ads today...
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...Five Force Analysis: Supplier Power The beer market’s prime suppliers are farmers. Most breweries buy their supplies on the relevant countries’ futures exchange. Hence the branch has an opportunity to diversify its risk by trading futures contracts as well as hedging other risks. Various farmers supply the hops, barley, corn and rice used to produce beer. In 2008, there were 2,053 companies that purchased these ingredients. The overall beer industry sold nearly 206 million barrels of beer in 2009. For major brewers, the volume of ingredients purchased, the large number of farmers available to purchase the ingredients from, low switching costs on the part of the brewer, and inability of the farmers to forward integrate, supplier power in considered low in regard to the major brewers. Craft brewers who purchase fewer ingredients and sometimes more specialized ingredients may cause supplier power for this segment of the industry to be somewhat higher; yet, overall, suppliers have put limited pressure on price and supplier power is LOW. There are only a few large suppliers of aluminium cans, plastic and glass bottles, which increase the supplier’s bargaining power. However, taken into consideration largest brewery companies existing we can assume that the suppliers of those goods have a incentive in taking care those as a customer and will therefore provide them with the best possible price, in order to keep them as a customer. Competitive pressure from supplier bargaining power...
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