Written case analysis. Adolph Coors Case Analysis.

Adolph Coors Case Analysis
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Adolph Coors Case Analysis
Coors created differences in the way it produced its beer as well as how it advertised its products. Creating such differences, according to Dess, McNamara, and Eisner (2016), creates a perceived industrywide uniqueness that is valued by customers. While brewing its beer, Coors fermented it for 70 days (Ghemawat, 1992). These were too many days in comparison to the average 20-30 days fermentation period adopted by other brewers. Coors believed that a longer fermentation period minimized the use of additives, thus enhancing the quality of their beer. The minimization of additive creates a perceived uniqueness and value to customers. Customers want something that is naturally produced. In addition, the beer that Coors canned or bottled was unpasteurized to prevent excessive heat which, according to Coors, affected the taste of the beer.
Given that the cost of refrigerating the unpasteurized beer was almost the same as the cost saved in avoiding pasteurization, it is evident that Coors' focus was on the quality of their beer rather than the costs incurred. Dess, McNamara, and Eisner (2016) reveal that quality is one of the forms that differentiation can take, which explains why Coors was so adamant about preserving the taste of the beer and reducing the use of additives. As indicated by Ghemawat (1992), brewers also differentiated their beer through segmentation. Coors, in particular, segmented its products to create slightly different product lines. Initially, Coors only offered its customers the Coors Banquet. This had limited its market to clients who were only interested in the premium brand. However, the company decided to segment its beer and started offering other brands such as Coors Light, Coors Extra Gold, and George Killian's Irish Red ale. Coors also differentiated their beer through advertising. Dess, McNamara, and Eisner (2016) suggest that using “creative and innovative advertising programs” is one of the ways in which a firm can differentiate itself in primary activities. Coors differentiated its advertisement of Coors Light by presenting both men and women drinking at a bar but not endorsing the light beer. In the advertisement, Coors Light was just on the background of the entire advert. This was different from how other brewers had advertised their light beer. Some of Coors’ competitors used male athletes in their adverts to endorse light beers while others showed men being victimized for ordering light beer in bars. Coors advertisement of light beer was unique because first, it included both male and female characters and second, none of the characters endorsed the beer. Coors' advertisements were also unique in the sense th...