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The major issues that Larry Brownlow is being a new owner of a business and operating it efficiently. Secondly there’s a core element of readily available cash flow in question. Larry can only spend $15k for the feasibility study assessment. Furthermore Larry has a $500k trust fund established for him in inherited from a deceased relative this trust fund also enables his immediate family to receive an annual income of $40k. The main problems that Larry Brownlow is deciding on is the question of taking an added risk by investing in the pursuit of distributing the Coors product or not invest at all. (Marketing Management, 2007 pg 250)
I think the most convenient course of action that Larry Brownlow should take is follow suit with the information given in study (B). The information in study B suggests that Larry should start up a distribution hub in Kent and Sussex County. (Marketing Management, 2007 pg 252)
This would help Larry test the waters before distributing more regionally than eventually nationally. This opportunity will help Larry properly determine his target market for his product through different sets of environment. (Marketing Management, 2007 pg 9)
In the simplest form here are Larry few alternative options. First Larry can play the numbers game and circumspectly watch the current marketing potential for his particular product also by simulating and forecasting data to increase his chance of being more profitable. Secondly Larry can easily find other channels to make his business profitable by outsourcing his distribution to third party entities. This would ensure profitability but less on the return. Lastly Larry can convey moxie by taking a risk and pursue a secure independent distribution and focus on creating a profitable business.
I would choose the last alternative simply because Larry has been approved a line of $400k and another $400k through other sources might give to his business. In any new business there is a rocky start the immediate influx of income may delay some of his operation. There is also assurance in the fact that Larry will receive a substantial amount of money through the trust fund receiving an additional $500k this would help fill any financial voids in the ongoing of his new business. The main takeaway that Larry can follow is focusing on new available markets not the product itself. (Marketing Management, 2007 pg 9)
Peter, J. P., & Donnelly, J. H., Jr. (2007). Marketing management: knowledge and skills. (8th ed.). New York: McGraw-Hill/Irwin. Chapter 1 pp 9
Peter, J. P., & Donnelly, J. H., Jr. (2007). Marketing management: knowledge and skills. (8th ed.). New York: McGraw-Hill/Irwin. Case 2 South Delaware Coors, Inc. pp 250
Peter, J. P., & Donnelly, J. H., Jr. (2007). Marketing management: knowledge and skills. (8th ed.). New York: McGraw-Hill/Irwin. Case 2 South Delaware Coors, Inc. Exhibit 1