Coyote Beer is the oldest brewing company in New Mexico or, at least, the oldest beer brand in New Mexico. During the 1980s, the company went through bankruptcy largely due to its inability to compete with the big national beer brands. In the 1990s, a group of investors purchased the brand name from the bankruptcy court and reincarnated it as a microbrewery with retail locations offering brew pub atmosphere and casual dining. In addition, Coyote Beer distributed its products through specialty liquor stores that offer an extensive assortment of specialty beers, including imported and microbrewery beers. The company currently has 18 brew pub locations and distribution in 243 liquor stores across

The company has experienced solid growth and financial performance over its 12-year history. However, the competitive environment remains tough with the big national brands at one end of the spectrum and other microbreweries and brew pubs at the other end. It is critical that Coyote Beer spend its limited marketing budget in the most efficient manner to drive business to its brew pubs and the sale of its products through liquor stores.

In recent months, the management team at Coyote Beer has been divided in regard to the best marketing strategy for the company. One contingent wants to pursue a strategy based on a low price, relative to import and other microbrews. The other group wants to focus on enhancing the image of Coyote Beer with a focus on its long history in the state of New Mexico and the artisanal nature of its brewing process. The difference of opinion between the two factions has become heated and somewhat divisive. Furthermore, time is running out to get the marketing strategy in place for the coming year.

1. Comment on the advantages and disadvantages of each design.

2. What measures of the effect of the experimental variable are provided by the different designs? Which one offers the clearest picture? Why?

3. Which design provides a measure of the effects of variables not included in the experiment? Explain how it accomplishes this.

4. Is there another design, besides the three mentioned, that would be better? If “yes,” which other design would you propose? Why do you say that?