The Corona Beer (Modelo) Case Study
Identify and discuss the trends in the global beer markets.
There is a common item found at sporting events, entertainment venues, restaurants, bars, and mainly in the refrigerators of Americans. This item is beer. Of the 67% of Americans who consume alcohol 42% prefer beer (Frank Newport, 2010). Beer consumption is continuously increasing not only in the United States but also globally. In the past decade, the global beer market has gone through a process of rapid change. In many emerging and developing markets, economic and societal developments and transformative improvements in the quality and appeal of beer brands have resulted in strong organic growth in the beer category. Developed markets have also undergone change as brewers have responded to constrained or declining beer consumption trends. (SABMiller Investors, 2011).
Within the emerging markets, China recorded volume growth of 6% and, despite inflationary pressures, an increase in volumes of premium lager. Africa saw healthy growth of 8% with increased volume in both the premium and more affordable price segments, driven by Angola, Nigeria, Tanzania, Ghana, Uganda and the DR Congo. Latin American beer volumes grew by 3% in 2010, with reductions due to a material tax increase in Colombia, more than offset by rapid growth in countries such as Peru. In Eastern Europe, beer volumes declined by almost 5% in the face of continuing unemployment and depressed consumer confidence affecting beer sales in bars and restaurants. “As economies improve, the trend towards premium will resume as consumers become more willing to pay for authentic, more image-oriented brands that reflect their socio-economic and lifestyle aspirations.
Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets. Modelo’s strategic focus was originally on Mexico City and the surrounding...
References: Arthur A. Thompson, J. ,. (2009). Crafting & executing Strategy; The Quest for Competitive Advantage Concepts and Cases. Boston: McGraw-Hill Learning Solutions. (pgs 249, c257)
C.V., G. M. (2010). Corona worldwide. Retrieved FEBRUARY 14, 2011, from Corona Web site: http://www.corona.com/worldwide/index.jsp?regionOID=5&tipoMedio=1
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