Preview

Corona's Strategies to Becoming World's Beer Leader

Good Essays
Open Document
Open Document
283 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Corona's Strategies to Becoming World's Beer Leader
Case 13

Since its entrance into the American beer market, Corona had built a marketing campaign around the idea of “fun in the sun.” Their ascent to stardom could be attributed to its brilliant and unique marketing campaign which was a direct result of the international strategy undertaken by Group Modelo when it expanded into the United States. While continuing to produce their beer domestically, Modelo entered into distribution contracts with companies that had local knowledge of the market and gave them autonomy to market the product fittingly, yet maintained an active involvement in the decision making. The result was the rise of Corona from a beer sold primarily in the states bordering Mexico, to the number one imported beer in America.
Corona has a distinguishing feature in its marketing campaign which is that it does not focus on the classical target market for beer drinkers, which are males between the ages of 25 and 45. Corona did away with this status quo. It needed to develop an image of a beer that would attract everyone, yet position itself as a premium import. With the “fun in the sun” campaigns, it sold the idea of escape and the idea of leaving behind everyday life for one that is relaxing. Corona also has an unobtrusive or bland taste, which made them able to get the non-beer-drinking population to drink beer, specifically females. Eager to please the new market for beer drinkers, bars, and restaurants decided to sell the beer, increasing its consumer reach. And because of its availability, it became a dependable second choice for beer drinkers who were frustrated with not having their favorite beer sold at the current

You May Also Find These Documents Helpful

  • Good Essays

    Bus 599 Paper

    • 1454 Words
    • 6 Pages

    The trend of beer over the last five years had a combined annual growth rate (CAGR) of 4.8% worldwide. (www.encyclopedia.com/doc/1G2-2843300064.html.). Within Central America and South America, the CAGR increased to 6.3%. Africa also showed growth by having CAGR that got up to 6.4%. A key note about the growth of beer was shown in Asia. (www.encyclopedia.com/doc/1G2-2843300064.html). The trends of beer for the last five years have being tilting toward consumers wanting expensive beers. Due to that, expensive beers or premium beers accumulated 17% of the beer sales globally. The premium beer market of North America as well as Western Europe sales…

    • 1454 Words
    • 6 Pages
    Good Essays
  • Good Essays

    The high quality and uniqueness of the ingredients already exist, however customers are buying the beer based off the lower costs. If Coors wants to use differentiation and the same ingredients, they must create a high level of cost parity to ensure high revenues and reduce all costs not directly related to differentiation, such as in severely reducing the number of packaging lines (320). It would be best if Coors condensed their advertising costs and instead focused on producing creative and innovative ads in place of a high quantity. The connections with wholesalers and important customers should be strengthened through public relations and used to promote a luxurious perception of Coors beer. Furthermore, the plans for buying the production plant in Virginia would still be valid, along with the plans for railway and road…

    • 1261 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Anheuser-Busch Inc. is a dominating global leader in the beer industry, specifically in the United States. Its roots can be traced all the way back to 1852 from the Bavarian Brewery in St. Louis MO when Adolphus Busch traveled from Germany to join his father-in-law. In 1876 Budweiser was founded and rooted its brand in values, ethics, and quality. These core staples of the company evolved all the way to 1982 when Bud Light was introduced. Today Bud Light is the best selling beer in the U.S. and the #1 beer sold by volume in the world. Let’s take a look into the marketing mix that makes this product so successful.…

    • 953 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Mountain Man

    • 2754 Words
    • 7 Pages

    With recent declining sales for Mountain Man Beer Company (MMBC), Chris Prangel is considering launching Mountain Man Light as a brand extension aligned with changes in beer drinkers’ preferences. He is seeking to maximize market coverage while minimizing brand overlap, and at the same time avoiding any brand equity damage, as MMBC’s core consumer segment is significantly different from the new targeted segment. Chris expects to negate declining sales of Mountain Man Lager and capture market share in the fast-growing light beer category, which accounted for 50.4% of all beer sales by volume in 2005 in the East Central Region (Exhibit 1). More specifically, Chris wants to capitalize on Mountain Man’s brand recognition in the region and capture a meaningful share of the local light beer market, a market in which MMBC currently has no presence. In addition, he is hoping a successful launch of Mountain Man Light in the local on-premise locations will boost the lagging sales of Mountain Man Lager.…

    • 2754 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Cerjugo SA

    • 1436 Words
    • 4 Pages

    Per capita beer consumption in the country had been stable for many years. In order to find new opportunities for growth, Cerjugo management decided to expand their product lines into juices. They recognized early on that the juice business was very different from that of beer. In beer, there was little competition and profit margins were high, close to 40 percent. The profit margins for juice would be much lower and there were a number of competitors but they felt they could create a competitive advantage by (1) focusing on “freshness,” i.e., all natural ingredients; (2) by leveraging their deep knowledge of their consumers; and (3) by capitalizing on an already strong retail customer base, which would triple as a result of adding juice products.…

    • 1436 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    Budweiser originates from the United State s and is owned by Anheuser–Busch Traditionally Budweiser has used humorous ad campaigns, always featuring a male(s) in party atmospheres and always including several gorgeous women. Budweiser Ad’s cover numerous different Budweiser’s main demographic is males between the ages of 25-34; while there second largest is 18-24. The difference between the minimum and maximum ages listed is not that large, however the maturity level and life stages between those ages are. For this reason I feel that Budweiser has developed several products; Budweiser, Bud Light, Bud shots, and campaigns them in various ways to sell their product and it’s dream to their targeted audience. In order to advertise to their targeted…

    • 2704 Words
    • 11 Pages
    Better Essays
  • Good Essays

    Stella Artois Case

    • 882 Words
    • 3 Pages

    It makes sense for Interbrew, a simple Belgium brewery to develop a global brand in order to increase volumes, to maximize sales revenues and to lessen its dependence on Belgium and Canada, its two primary markets. As the world beer industry which was divided among four leading brewing companies accounted for only 22% of the global volume, this reflected a great…

    • 882 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Chris Prangel - an MBA graduate - was set to inherit his father’s business, Mountain Man Beer Company. MMBC brewed one beer called “Mountain Man Lager”, which was also known as “West Virginia’s beer”. In order to recoup the declining sales MMBC were facing, Chris wanted to launch a Mountain Man Light, a “light beer” formulation of Mountain Man Lager in hopes of attracting younger drinkers, and in order to meet the growing demand of light beer in the United States. Over the previous six years, light beer sales had been growing at an annual rate of 4%, while traditional premium beer sales had declined annually by the same rate.…

    • 281 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    This case describes the various aspects of carbonated soft drink industry and the focuses on Squirt’s annual advertising and promotion plan in 2001. Squirt is a brand under the Dr Pepper/Seven Up, inc. The brand manager was concerned about the market targeting and product positioning and consulted advertising agency, Foote, Cone & Belding. The case also focuses on the entire industry structure and the marketing techniques used by the various leading companies so the Squirt’s annual advertising and promotion plan can be successful, and proper techniques to be used to target the growing Hispanic community in the markets where Squirt was popular. . The main aspect for the marketing planning for the brand, Squirt, is to focus on the positioning analysis, advertising and promotion expenditures, and competitor spending. The case also shows the opportunity in the Hispanic market and plan development for the target market.…

    • 1236 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    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.…

    • 255 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    This paper will identify and discuss the trends in global beer markets. It will discuss how Modelo’s International expansion was made possible through strategic partnerships with experienced distributors in local markets. The paper will focus on how Modelo should enter in the foreign market and what is the best strategy. We will discuss various challenges Modelo will face from his competitors and whether he should diversify his business to promote growth.…

    • 2769 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    The management team of Grolsch noticed that declines in consumer demand at home could be offset by increases in consumer demand in international markets. The Grolsch brand was considered a premium lager and was differentiated and was recognizable by the crown cork bottles in international markets. Premium lagers also have been in demand globally. Management saw significant additional potential for the Grolsch brand across Africa and Latin America in particular, where the premium segment was and is still in its early stages.…

    • 453 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Grolsch Global Strategy

    • 1520 Words
    • 7 Pages

    Grolsch, a company with a strong history and a highly rated product, has just been purchased by SABMiller. The company is evaluating its global strategy in light of the acquisition and determining how to position and sell its beer going forward. Grolsch has positioned itself well to compete internationally and has leveraged several tools (e.g. the MABA framework, strategic analysis) to effectively expand abroad. However, they must assess whether or not the MABA framework is still useful, what type of international strategy they should pursue (i.e. developed vs. developing markets), and if their adaptation strategies will continue to be an asset in their business development. The initial conclusion, detailed below, is that Grolsch should expand the MABA framework while also leveraging and recognizing the value of SABMiller’s distribution network. They need to maintain focus on international markets, looking at both developed and developing markets to diversify growth opportunities. Success for Grolsch depends on how well they can identify markets where their high-end, premium product will be desirable. But, it will also depend on their ability to adapt the brand image and marketing approach based on the cultural differences of the foreign markets they enter. The subsequent presentation contains exhibits and analysis that support and further develop these conclusions.…

    • 1520 Words
    • 7 Pages
    Good Essays
  • Satisfactory Essays

    heineken case

    • 665 Words
    • 2 Pages

    Heineken uses an international strategy that involves using cross-border deals to increase their distribution of over 250 beer brands in over 175 countries. The company has also acquired many different small brewers all over the world to add to their portfolio and increase access to new markets. Due to this strategy, Heineken currently operates over 125 breweries in over 70 countries and holds 10% of the global beer market. The company’s main entry mode into foreign markets involves foreign direct investment through acquisitions that give Heineken a great degree of ownership and control. They gain control of the whole brewery, so they expand by way of wholly owned subsidiaries. Heineken’s international acquisition strategy allows the company to increase market share and presence in their industry across the world, and do not have to worry about the added costs associated with creating new brands. It is difficult to pinpoint exactly what strategy for globalization Heineken has used, since they acquire these brands with already developed and successful products and allow them to stay as their own brands. I would describe Heineken’s strategy to be most similar to a transnational strategy. A transnational strategy is based on firms optimizing the trade-offs that go along with efficiency, local adaptation, and learning, where the pressures for local adaptation and lowering costs are high. A company using this strategy, seeks efficiency but as a means to achieve global competitiveness, as does Heineken.…

    • 665 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    3. What does a strategic group map of the global beer industry look like? How strongly is Grupo Modelo positioned in the industry? How favorably does it compare with its closest Mexican rival FEMSA? How favorably does Grupo Modelo's position compare to that of Heineken?…

    • 340 Words
    • 2 Pages
    Satisfactory Essays