Larry is faced with the challenging decision of whether or not to invest in a Coors beer distributorship in southern Delaware. He must first have a thorough understanding of the preferences of potential buyers of Coors beer in southern Delaware in order to assess the potential profitability of a distributorship in this market. Larry should purchase Manson and Associates performance Studies D, E, F, G, H, and I. These studies will best describe the preferences of the southern Delaware beer-consuming population. They will also indicate the feasibility of a Coors beer distributorship in southern Delaware. The total cost for these studies will be $14,049.50.
The Consumer Study (G), best captures the drinking preferences of the local population. The benefit of Study G is that it indicates whether or not consumers intend to buy Coors beer. This study will also indicate whether any negative perceptions about the Coors company in general exist in this market.
The drawbacks of this study are that it only analyzes a small population (focus groups) and the return rate of the questionnaires may be low. Nevertheless, the study is worth performing because it will provide Larry with primary data on consumer expectations of Coors beer.
Larry should as well invest in the Retailer Study (H). This study will provide him with an estimate of sales to retailers. It will also provide him with data on competitors' beer sales to local retailers. This will help Larry predict how much beer he will be able to sell to local retailers. The two drawbacks to this study are that it is costly, and only seven retailers will be personally interviewed. There may be a low return rate on the retailer questionnaires.
The Survey of Retail and Wholesale Beer Prices (I) is also important, as it will give Larry an...