Question
Returning to our running case for Shannons Brewery introduced in the market share exercise, assume that Shannons is currently serving the Austin, TX market and
Returning to our running case for Shannons Brewery introduced in the market share exercise, assume that Shannons is currently serving the Austin, TX market and wishes to expand distribution to a six-county area in North Texas: Dallas, Tarrant, Collin, Denton, Wise, and Cook. Before the final decision is made, Shannons needs to have some idea of the market potential for craft beer in the six-county DFW area and Shannons own sales potential.
According to the Craft Beer trade association, there are 117 craft brewers in Texas. Relevant population data for developing estimates of market and sales potential are contained in Table 1. The data show the total populations of each of the six counties, the proportion of the total Texas population in these counties, and the numbers of individuals over 21 years of age.
1.) Assume the average Texas adult (21+ years of age) consumes 3.8 gallons of craft beer per year. What is the market potential for the six-county area in gallons of beer sold? Round your answer to the nearest full gallon (no decimal places). Do not include commas in your answer.
2.) Assume the average Texas adult (21+ years of age) consumes 3.6 gallons of craft beer per year. Shannons market share in the Austin market has been steady at 2.9. Based on Shannon's experience in the Austin market, what is a good estimate of Shannons sales potential for the six county area in gallons of beer? Round your answer to the nearest full gallon (no decimal places). Do not include commas in your answer.
Table 1. Population Data for Six-County Area of North Texas 21+ Denton Collin Wise Tarrant Dallas Cook Total Population % of Texas 662,614 3.96% 782,491 4.68% 59,127 0.35% 1,809,000 10.82% 2,368,000 14.17% 38,437 0.23% 5,719,669 34.22% 410,827 485,152 36,659 1,121,598 1,468,184 23,831 3,546,253Step by Step Solution
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