Coors is an American family-owned brewery that was started in 1873 in the United States by a German immigrant named Adolf Coors. Established in Colorado, the company rose to become a market leader in the US through effective management and the proper usage of resources in the 1960s and 1970s. Basing his operation tenets on quality production and service delivery, Adolf Coors found a niche in the US brewing industry and gained a firm market base that survived various adverse economic conditions in the country. Nevertheless, the success of his company was caused by an enhanced positive image of the company due to favorable market conditions, which resulted in high demand for their products, as well as its effective marketing strategies whenever they entered a new market. Following significant changes in the American beer industry and failure to capitalize on a wide market base like its competitors, Coors position in the American market deteriorated in the late 1970s. Coors needs to improve its future prospects by focusing on expanding its market base to more geographical locations to in order to protect itself against unfavorable market conditions.
Coors founded its business on the principles of production of high-quality liquor and emphasized on using the best and natural raw inputs, packaging and delivery methods, and proper business management. As a family owned business, the family members formed ownership organization where they invested hugely in developing a dedicated and loyal team whose focus was providing the best resources for the company. As a result, the choice of Colorado as their headquarters was based on the belief that the State had the purest and cleanest natural water that they would use in their production. In addition, the firm realized that they could obtain high-quality barley from contract farmers in Colorado to ensure the best input for their beverages. Most importantly, Coors believed in keeping their products natural and avoided using artificial preservatives or harmful processing methods. As a result, the market was assured of natural high-quality products that unfortunately had a short shelf-life of a month or less.
The market conditions in the 1960s and 1970s in the US and unique natural products of Coors led to high demand and positive image that was vulnerable to employment factors. Notably, the insistence of maintaining a purely natural production had significant financial implications, because the products had to be transported under refrigeration and packed in specialized containers. As a result, the production and delivery costs increased causing an increase in the product’s pricing. The company failure to advertise coupled with the high costs of its products led resulted in a reduction of its market.
Significant changes in the market occurred in the late 1960s following a geographical growth in the beer industry. Significantly, Coors major competitors had established a market in all 50 states of America. However, Coors maintained a narrow geographical market and only supplied beer to eight States. While the company’s unique beer ensured sales despite the small coverage, the company’s future prospects were vulnerable to economic changes especially those that affect the international market. Therefore, the company was economically unstable compared to other beer producers in America. Therefore, the reduction in sales as a result of the internal problems facing the company and its employees placed the company in serious financial difficulties. For the first time, the company had to seek outside help for funding by placing the company on public offer. Gradually through the years, the company had to yield more power to non-family members including relinquishing the leadership of the company to non-family members.
In the 21st century, the Coors business was still suffering from the effects of the mid-1970s business fall. While the company had made efforts to regain its former lead in the market, changing market conditions and the influx of new products in the market have made this objective difficult to achieve. Perhaps one of the most significant gains made towards the end of the 20th century was the introduction of various innovative products, under Peter Coors, in the 1980s. For instance, the company introduced Zima Citrus, which was a low-alcohol beverage that came in a variety of natural citrus flavors. Unfortunately, the success of the new product was short-lived and it was withdrawn from the market barely three years after its introduction. Seemingly, the present beer market has undergone significant transformations requiring new strategies to capture the market.
Coors’ strategy for come-back may lay on the company’s historical strong points; insisting on natural production and building a positive image in the market. More importantly, the company should match its competitors by establishing a wider market in America. The specific approach could be by engaging in philanthropic activities and presenting an opportunity for markets to try their natural products. One of the major challenges that the company will face is amassing adequate funds to carry out its marketing activities and expansions. In this regard, the comeback strategy will require heavy funding, which can be achieved by borrowing. Nevertheless, with a good strategy and a return to its original tenets, Coors is capable of regaining its former prominence and obtaining a significant market all over the world.
In conclusion, Adolf Coors brewing enterprise brought unique products in the beer market and a unique set of conditions that made the company one of the best through history. Although the company’s fortunes reduced due to a damaged public image, its former prominence can be regained by a strategy that is based on restoring its former tenets and establishing a wider customer market by opening production factories in different parts of America. Importantly, it is the company’s unique natural products and high production standards that will appeal to the public and enable them to find their niche in today’s market.
Figure 1: Core Factors of Success at Coors