South Delaware Coors

Based on the information provided in the case study, my recommendation to Mr. Brownlow is that he should go forth with his application to Coors, Inc. and look to invest in the distributorship if Coors believes he will be a good fit.

Issues that led to this recommendation

• Mr. Brownlow has estimated that it would cost roughly $800,000 (See Exhibit I for pro forma sheet) for this investment to get started. A local banker has reviewed his financial outlook and sees no problem extending a line of credit of about $400,000 to him and he can get another $400,000 from family resources; a $500,000 trust will be made available to him a few months after the application deadline

• Research suggests that southern Delaware and its population’s preferences for beer could be profitable for a Coors distributorship

• The Coors brand is well-known, (Larry knows that Coors is popular in adjacent states) and since it currently does not have a statewide presence, there is room to capture a share of the market

The $800,000 capital for the investment will provide Mr. Brownlow with enough opportunity to fund the expenses associated with this venture. Additionally, a $500,000 trust will be made available to him in the very near future that can be used to offset any unforeseen circumstances with the development of the distributorship. Having these funding options available to him is a major first step

Several research reports available from Mason and Associates (Please see Exhibit II for study explanation) provide substantial background and financial determination to help guide Mr. Brownlow’s decision. However, because his research budget is $15,000, he can only afford certain reports. I would recommend that he purchase research studies D,E,F,G,H, and I, for a total of $14,049.50 because they offer significant information on potential competitors in the area, as well as consumer and retailer preferences in regards to beer. Furthermore, these studies can be used to promote his understanding of the Coors’ product and brand to the application committee.

With these things in mind, there is potential for Mr. Brownlow’s investment