Executive Summary 3 Background 4 Problem Identification 4 Company Objectives 5 Company Strategy 5 Market Overview 5 S.W.O.T Analysis 6 Five Forces Analysis 7 Competition Analysis 8 Major Competitors 9 Financial Analysis 10 Key Factors 10 Driving Forces 11 Alternatives 11 Recommendation 14 Action Plan 15 Contingency Plan 16 Appendix A 17 Table 1-1: Key Financial Ratios 17 Graph 1-1: Perceptual Map 18 Chart 1-1: World’s Beer Consumption in Liters 19 Bibliography 20
Grupo Modelo S.A. de C.V. (Modelo) is Mexico’s largest beer producer and distributor. Corona Extra, one of its main brands, is the world’s fourth best selling beer brand in 2006. Corona’s success is based on the unique and distinctive marketing campaign “fun in the sun” which focused on selling “escape from everyday life to a life of relaxation”. Marketing was directed to a broad market including traditional non-beer drinkers.
The beer industry is facing strong competition from rivals selling similar products. Global consolidations have put a great deal of pressure on Modelo’s market resulting in a loss of market share for Modelo both domestically and internationally.
A SWOT analysis shows that the company has strong brand recognition, an outstanding marketing campaign, and good distribution capabilities in the U.S. market. The financial analysis indicates that the company is in a strong financial position and will be able to finance future expansions.
Key success factors indicate that an innovative marketing campaign and a well known brand, along with a strong network of distributors are necessary to compete in both the domestic and global marketplace.
Alternatives were evaluated based on the ability to increase Modelo’s global market share. Various strategies were considered which included maintaining the status quo, increasing the marketing budget, developing strategic alliances, opening breweries
Bibliography: Thompson, Arthur A. Crafting and Executing Strategy: Seventeenth Edition, McGraw-Hill, 2010. Wikipedia. Corona (beer): http://en.wikipedia.org/wiki/Corona_(beer) Beer Consumption Map: http://upload.wikimedia.org/wikipedia/commons/9/99/Map_of_the_world_by_beer_consumption.png