Identify and discuss the trends in the global beer markets.
Having a large international presence, the brewing of beer has in the past been a local industry with only a few industries. In the previous decades there has seen increasing consolidation within the industry. In 2003, sales totaled more than 1,400 million hectoliters. The major drive for growth came from higher consumption in developing countries, such as China. The better-known beer markets, volume growth was sluggish due to the rising saturation. The lifestyle trends are encouraging a big shift away from the beer consumption’s, as health consciousness boost and engage consumers to cut back or cut down on heavy drinking. In the fashion trends upon alternative drinks, such as wine, FAB’s and bottled water, has also forced growth in beer sales. In addition, stricter drinking and driving legislation is discouraging consumers from drinking away from home. The rise in disposable income, enhancements in the quality of beer, marketing and advertising activities, and a gradually growing beer-consuming population base are predominantly driving global beer volumes. A continuing trend obviously in emerging and growth markets is the replacement of beer in place of customary beer, local spirits. Rising incomes and increasing awareness towards brands and marketing compels this trend. Also, the demographic changes towards increasing westernization and urbanization of tastes among younger generations have sustained the change towards beer. In a full-grown market, consumption rates differ based on product isolation, and advertising and sponsorship activities. Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets. Corona’s rise to glory could be recognized to its distinctive and radiant marketing promotion, which was a direct effect of the international approach undertaken by Grupo Modelo when it extended into the United States. Corona beer which was sold only near the neighboring states near Mexico, end up being the number one imported beer in America. When Corona initially entered the American beer global market, it chooses Chicago-based Barton Beers Limited as its distributor. Barton Beers Limited was a simple alternative because it was the biggest beer importer in the 25 western states and was knowledgeable in the sales and advertising of imported, quality beers. It was through Barton Beers that the advertising representation of “fun in the sun” was born. Beginning in 1986, Modelo determined to opt for a second distributor, which was Gambrinus Inc., who was headed by a previous Modelo executive. Each advertising company was accountable for their own 25 states. Modelo’s agreement with Barton Beer Ltd, and Gambrinus Inc. distributors was that each one would be in charge of basically all activities connecting to the sale of the beer, with the exception of the production, which took place in Modelo’s factory in Mexico. Everything including shipping of the beer, assurance, custom authorization, pricing strategy, and creativeness of the advertising campaigns are the importer responsibility. On the other hand, Modelo had the ultimate say on anything relating to the brand image of its beers (Goodman 2003). Identify and discuss the next foreign market that Modelo should enter and discuss the strategy it should use to enter the market. Australia is the next foreign market that Modelo should enter is in. Presently, Australia is positioned the fourth internationally in per capita beer consumption, which is about 110 liters per year. Australia's beer market is amongst the most cost-effective in the world, producing earnings of $1 billion a year, which is shared, mainly between Lion Nathan and Foster's Group. Australia produces only 2 types of beer, which are lager, and light beer. With the exception of the family-owned Coopers Brewery, also the Lion Nathan or Foster’s Group has...
References: Brown C. Roath & J. Pheann J. 20091130 Corona Beer: From a Local Mexican Player to a Global Brand Case Analysis) Brown, C., Roath, J., & Pheann, J. (2009, November).
Corona Beer: From a Local Mexican Player to a Global Brand. In J. Portz (Ed.), Crafting & Executing Strategy: the Quest for Competitive Advantage Concepts and Cases. New York, New York: McGraw-Hill Learning Solutions.
Corona Beer: From a Local Mexican layer to a Global Brand Case Analysis. Retrieved November 07, 2011, 2011, from www.plu.edu/~beechujs/doc/corona.doc (Management Review: Markets and Strategy 20090615 Trends in the Global Beer Markets) Management Review: Markets and Strategy. (2009, June).
Durchslag, A. (January 01, 2008). Budweiser 's last bow: Grupo Modelo, Mexico 's number one beer maker behind the Corona brand, will not give InBev, the Brazilian-Belgian brewer of Stella Artois, a clear run when it comes to buying Budweiser owner Anheuser-Busch for US$52bn in cash. Acquisitions Monthly, 289, 16-17.
Goodman, E. (2003). Corona: The inside story of America 's #1 imported beer. Hoboken, N.J: Wiley.
Thompson, A.A., Strickland, A.J., & Gamble, J.E. (2010). Crafting and executing strategy; The quest for competitive advantage: Concepts and cases: 2009 custom edition (17th ed.). New York, NY: McGraw-Hill-Irwin.
(Wikipedia 20100802 Beer in Australia) Wikipedia.(2011, November). Beer in Australia. Retrieved November 7, 2011, from http://en.wikipedia.org/wiki/Beer_in_Australia
Please join StudyMode to read the full document