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Modelo introduced new television ads targeted at the growing Hispanic consumers and introduced promotional offers. Acquiring an import contract from one of its two importers in the US and establishing its own distribution network, was also being considered as a part of the reorganising process.
This was to minimise the middleman fees and improve profits. The Challenging Times The growth in the US beer industry was triggered by the introduction of lager beer5 between s and s.
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Since then, the country was known to be the largest beer consuming market in the world. The market for beer in US consisted of essentially three segments-domestic, imports and speciality beers.
Bud light, Budweiser, Coors light, Miller lite and Natural light etc were the top selling beers in the domestic beer category. Major drivers of the beer sales in the US included demographics, pricing, and product innovation. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.
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Do No t Co py Corona: With increased sales Corona became the number two imported beer in the US after the Dutch beer, Heineken.
During the same time, Modelo also set up a subsidiary, Procermex Inc. Procermex coordinated, supervised and supported the activities of its two US importers and their network of around distributors. Procermex also spent huge amounts on monitoring the use of its popular trademark on items of clothing.
The distinctive image of Corona was that the brand was packaged in exclusive non-returnable longneck and clear bottles. This packaging played a vital role in the sales of Corona, because all other brands the domestic as well as the imported in the US came in returnable longneck bottles, which were difficult to store.
The distributor was picking them up and taking them to the brewery to be washed and refilled. This distinctive packaging helped Corona quickly gain popularity in the imported beer segment.
But soon, the domestic brewer Anheuser Busch followed by many other domestic brands began adopting similar packaging.
Furthermore, Anheuser Busch, having a As a result, the company applied all the tactics it could to derail Corona in US Anheuser Busch was concerned about the decreasing sales of Budweiser and its other brands due to the popularity of Corona over the years. So it financially penalized the wholesalers who carried Corona and ran ads warning consumers that beers in clear bottles were likely to be stale.
It also tried to highlight the absence of a labelled manufacturing date on the bottles of Corona. However, Gambrinus reacted in time by absorbing the levied federal tax and preventing an increase in the price of the brand.
Barton Beers was the largest beer importer in 25 western states of the United States. Bythe Corona brand was launched in Austin, Texas and in four months, the brand became available in the whole of southwest and the western United States.
The same year, its sales went up from 10, to 30, packs. However, with the disintegration of the Soviet Union and dismantling of Eastern European communism in the late s, trade opportunities increased in the US, expanding the economy.
Higher income groups began to spend more on imported goods including beer. Subsequently, many foreign companies especially Mexican exported about brands of beer to United States through importers serving as the middlemen. Heineken, a Dutch export was the first to establish itself at the top in the imported beers category of the United States.
In addition, vigorous marketing by leading brewing companies also contributed to the promotion of imports. Since then, the sales of the imported beers in the country showed a continuous growth and analysts predicted that the trend was to continue for many years to come.
Based on a survey report that most people were unable to purchase Corona in places such as airlines, golf courses and stadiums because of restrictions on glass bottles, the company introduced Corona in a new packaged can.
This offered Corona, an opportunity to penetrate into areas such as stadiums, swimming pool bars, marinas, hotel minibars, etc where glass bottles were not allowed.
However, Corona in the clear non- returnable, longneck bottle remained the primary package.Four bottles out of the rich variety of Mexican beers.
In most Latin America countries, the beer is a letdown. One or two brands usually dominate the market and they generally present minor variations on a similar taste profile. Mexico is an exception to the rule, with a long history of quality beer. Meanwhile, other Mexican beers like Negra Modelo and Dos Equis Amber have garnered better ratings.
So how has Corona managed to become so popular? It's all in the marketing, according to Stock.
3 June - Best Beer HQ Top 5 facts about Corona Extra. Think you know everything there is to know about Corona? Legendary Mexican beer brand Corona is a marketing juggernaut, a veritable sales behemoth and, let’s be honest, not the best beer to grace this green earth. The goal of the Corona Light campaign is to "break through the clutter" of big-spending domestic brews by zeroing in on an older audience of drinkers ages 35 to 44, said Jim Sabia, chief marketing.
INTERNATIONAL MARKETING (MKT ) Group 4. INTERNATIONAL MARKETING (MKT ) Group 4 motorcycle give the strongest match with the cooled Corona beer served by the rules!!! Carlos Fernandez•Listed in the Mexican stock exchange•Considerable stake owned by Anheuser-Busch.
Corono - the Mexican Beers Marketing Strategy that other brands have tried to get into.” – Rohit Deshpande, Professor, Harvard Business School 1 – Fernandez, CEO of Grupo Modelo2 Corona Extra (Corona), the beer brand of Mexico’s Grupo Modelo (Modelo) Brewing Company had been the number one imported beer in the United States since