The situation facing Mr. Larry Brownlow is a tough one. He is young with minimal money to work with. This shows that he must be careful and research all of his investing activities closely. The problem that faces him is deciding if opening a Coors Beer brewery in his area of Delaware is a profitable investment. The beer is obviously not widely carried in the area so that makes the situation that much harder. He has less information to work with. This is why he contacted the Manson Research Firm. That presents the second problem. The firm will do the research to help do a feasibility analysis, but the information is not cheap. Larry is working with about two weeks until the deadline to submit an application for distributorship. He
This information costs $1,000.
Next is the analysis of beer taxes paid by the six, already established, beer wholesalers. This information is important to Mr. Brownlow because it gives him a glimpse into his operating expenses for his business. Looking into these costs is important because although you may have enough money to establish the business, will the business generate enough profits to cover the operating expenses and still generate cash flows? This information costs $200.
Last is a financial statement summary of wine, liquor and beer wholesalers for 1996. This is very important because it gives you a look into all the movement of money inside the wholesaling business. You can have an idea of what you could possibly make and spend. It looks at assets, liabilities, income, and ratios. Basically all of the accounting activities if established wholesalers. This information costs $49.50.
Stage two research involves research investigation primary data only. This is information coming directly from the source. First, they have a consumer study. This study is extremely important. The reason it is so important is that this information is coming directly from the potential consumers about their feelings on the Coors brand and their beer consumption habits. This study looks into their attitude towards Coors, Weekly beer