Corona Beer Competitive Strategies

Topics: Grupo Modelo, Beer in Mexico, United States Pages: 1 (255 words) Published: October 13, 2010
Corona Extra has solidified its position as the number one selling beer in Mexico and has reduced the gap on becoming one of the most popular import beers in the United States. These achievements however, did not come with little planning. The Grupo Modelo brewery took strategic steps in order for them to produce a product that is in such demand in the United states and the rest of the world.

During the 1930s as most other breweries in Mexico were more concerned with providing aid to the war effort with the United States, the Grupo Modelo company focused on developing a successful domestic market and improve production facilities. One of the ways the company grew to rapidly was the new way for direct profit sharing. By separating beer that was sent to groceries stores to making it more exclusive to buyers, the product was controlled by key persons allowing for more control for point of distribution.

In the 1990’s, a strategy that helped sling shot Corona into the U.S. market was the unique idea of subsidizing the taxes that were placed on import beers so that the consumer would not have to be passed to cost. This made the beer cheaper than other import beers, which allowed for higher volumes to be consumed. With the import beer becoming cheeper, the demand was also increased due to the marketing scheme that emphasized the idea of "putting a piece of Mexico in the hands of millions of people every day around the world."
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