This document provides an overview of Grupo Modelo's international marketing strategies for Corona beer. It includes an analysis of the company's current situation, vision, mission, industry, key performance indicators, competitors, financial statements, PESTEL analysis, Porter's 5 forces model, SWOT analysis, 7P's of marketing, market segmentation, strategies, positioning, and recommendations. Grupo Modelo is Mexico's largest beer producer and Corona is the top imported beer in the US. The document outlines Corona's "fun in the sun" marketing campaigns and beach-themed positioning as an escape from everyday life.
Beer market is getting stagnated, no new strategies and products are coming up, this is my take on applying principles of Marketing to revive this brand and try a different positioning
The alcoholic beverage market has long been formed by volatile demand trends, legislative regulation, and fierce competition in a highly-concentrated environment. Generating over USD 33.38bn of revenue in 2015, the beer segment faces great rivalry, declining demands, and threatening substitutes. Moreover, the industry has been characterized significantly by mergers and acquisitions in the past, such as the SABMiller plc being acquired by Anheuser-Busch InBev in 2016. This presentation, created with my workgroup for the Master in Management at IE Business School provides a thorough analysis of AB InBev. The multinational corporation, listed on the Euronext Brussels and focused on the beverage and brewing industry, is considered as one of the largest fast-moving consumer goods companies in the world. To analyse AB InBev the SCP approach was applied using Porter’s five forces and a dynamic overview of the industry applying a strategic group map.
If you have further interest in the beer industry, it’s characteristics and development, I highly recommend Harvard Business Review’s Beer Cases series (https://hbr.org/product/the-beer-cases-a-a-b-inbev/W11613-PDF-ENG).
Beer market is getting stagnated, no new strategies and products are coming up, this is my take on applying principles of Marketing to revive this brand and try a different positioning
The alcoholic beverage market has long been formed by volatile demand trends, legislative regulation, and fierce competition in a highly-concentrated environment. Generating over USD 33.38bn of revenue in 2015, the beer segment faces great rivalry, declining demands, and threatening substitutes. Moreover, the industry has been characterized significantly by mergers and acquisitions in the past, such as the SABMiller plc being acquired by Anheuser-Busch InBev in 2016. This presentation, created with my workgroup for the Master in Management at IE Business School provides a thorough analysis of AB InBev. The multinational corporation, listed on the Euronext Brussels and focused on the beverage and brewing industry, is considered as one of the largest fast-moving consumer goods companies in the world. To analyse AB InBev the SCP approach was applied using Porter’s five forces and a dynamic overview of the industry applying a strategic group map.
If you have further interest in the beer industry, it’s characteristics and development, I highly recommend Harvard Business Review’s Beer Cases series (https://hbr.org/product/the-beer-cases-a-a-b-inbev/W11613-PDF-ENG).
Integrated Marketing Communication - Adidas Viren Lathiya
Integrated Marketing Communication tools of Adidas. This Presentation Includes:-
1) Tools Of I.M.C
2) Channels
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4) Competitive Advantage
5) B.C.G Matrix
6) Competitive Strategies
Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and messages are carefully linked together. At its most basic level, Integrated Marketing Communications, or IMC, as we'll call it, means integrating all the promotional tools, so that they work together in harmony.
This PowerPoint examines the corporate structure of Target in a strategic manor. See how it compares to its competitors and why it is one of the leading retailers in today's society.
Harvard Business School Case Study on Mountain Man Brewing Company by Shashank Srivastava, IET Lucknow under the guidance of Prof. Sameer Mathur, IIM Lucknow.
Integrated Marketing Communication - Adidas Viren Lathiya
Integrated Marketing Communication tools of Adidas. This Presentation Includes:-
1) Tools Of I.M.C
2) Channels
3) Marketing Mix Strategies
4) Competitive Advantage
5) B.C.G Matrix
6) Competitive Strategies
Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and messages are carefully linked together. At its most basic level, Integrated Marketing Communications, or IMC, as we'll call it, means integrating all the promotional tools, so that they work together in harmony.
This PowerPoint examines the corporate structure of Target in a strategic manor. See how it compares to its competitors and why it is one of the leading retailers in today's society.
Harvard Business School Case Study on Mountain Man Brewing Company by Shashank Srivastava, IET Lucknow under the guidance of Prof. Sameer Mathur, IIM Lucknow.
A brief description of setting up brewpub/microbreweries in India. mail me your inquiries to
check website www.indobrews.com for more information,
Email us at brewindo@gmail.com
APART FROM DISCUSSING THE PRESENTATION ALL OTHER SERVICES ARE CHARGEABLE.
CONSULTATIONS (ONLINE/ONSITE) FOR MICROBREWERY/BREWPUB PROVIDED WITH REGARD TO TECHNICALITIES INVOLVED (NO LEGAL OR EXCISE WILL BE DALT WITH)MAY BE PROVIDED.
TURNKEY PROJECT AND CUSTOMIZATION SERVICES PROVIDED. RAW MATERIAL, EQUIPMENT, SETUP, DESIGN, BREWING AND RECIPES WILL BE IN SCOPE OF SERVICES.
Supply Chain decision model with Excel's Solver tool. Goal - To introduce a new craft brew in the market, maximize annual profits and minimize delivery costs.
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In this presentation discussed regarding Rivalry between Cocacola and Pepsi
This is a report on the Innovation Trends in Beer and Spirits, developed by Advisium Growth and Amati and Associates, highlight what are the industry trends from a consumer point of view, and how to tap into them
Crafting winning strategies in a mature market - US wine marketSaurabh Arora
The Industry Landscape in 2001
US: 4th largest wine producer in the world
US: 34th in world per capita wine consumption
Top 8 firms produce more than 75% of all the wine volume
Estimated 2500 firms produce the remaining 25%
Dominance of few large players in the low price market
Greater shelf space & high marketing budget
1990s: Consolidation of retailers and distributors across US
No of distributors fell from 5000 to 250 by 2000
Only 50 to 100 left with access to widespread national distribution
Large retail consolidation in US
Top 10 supermarkets control 55% of the US market in 2000
Majority of producers are focused on low volume/high price to gain maximum return/margin
Distributors are focused on high volume/low price to maximize economies of scale
Near impossible for a new company to establish itself
Low barriers invite more players to wine market
Porter’s five forces analysis
Threat of new entrants – HIGH
Low barriers to entry for new players in wine industry
Firms spent 40% of their expenditures on marketing and distribution
Existing rivalries in industry – HIGH
Total no of wineries in US increased by more than 400%
Glut of grape supply due to low growth in demand
This put downward pressure on price and margins
Bargaining power of Buyers – HIGH
More players are entering the market
Production outstripped demand by 20%
Consolidation of retailer and distributor
Bargaining power of Suppliers – LOW
Wine producers with their own vineyards attempts to control the operations starting from production to distribution
Threat of Substitutes – LOW for Budget
Only 10% people drank wine regularly
Of the remaining 90%, 46% preferred beer or spirits
35% drank alcoholic beverages other than wine
Blue green red and purple ocean strategySajna Fathima
blue green purple and red ocean strategy
Globalization is characterized by global production and exchange of goods and services as well as a global flow of technology, information, and capital. The business strategy is composed of two types of oceans: red oceans and blue oceans. Red ocean strategy is to intense competition. On the other hand, Blue ocean strategy is about growing demand, breaking away from the competition.
3. Current Situation
(Ashok Som, case 13, corona beer)
•Formed in 1922, 1st brewery in 1925
•8 breweries in Mexico
•Current chairman – Carlos Fernandez
•Listed in the Mexican stock exchange
•Considerable stake owned by Anheuser-Busch
4. • Mexico’s largest beer producer and distributor
• Corona extra- world’s fourth best selling beer
• Top imported beer in the US market
• Among top 10 breweries of the world
• Market leader
5. Vision
By 2015, earn over half of our revenue from International
markets, and to consistently strengthen our leadership in the
domestic market, while maintaining profitability. Grupo Model’s
vision consists of three key aspects: to inspire pride, passion and
commitment to the beverage market.
Mission Statement
To produce, distribute and sell quality beer, at a competitive
price, optimizing resources and surpassing customer
expectation, in order to contribute to the economic and social
development of Mexico as well as growing as a multinational
competitor in the beverage market, inspiring pride, passion and
commitment, and generating value for our stakeholders.
15. Stock Prices
Company Stock Prices
Anheuser Busch Inbev SA (BUD) $56.21 - $57.17
Grupo Modelo SAB de CV (GPMCF.PK) $6.38
Coca Cola Femsa SAB de CV (KOF.N) $87.83 - $88.20
Source: www.reuters.com,search Results. (n.d.).
22. POLITICAL FACTORS
– An unstable political environment
• Corruption
• Drug Cartels
– Trade Regulations & Tariffs
• North American Free Trade Agreement (NAFTA)
• Federal excise tax - Absorb the tax rather than passing it
to the consumers
S, Abhijeet. Management Paradise.com. December 01, 2010.
http://www.managementparadise.com/forums/principles-management-p-o-
m/208681-pest-analysis-nafta.html (accessed November 09, 2011).
23. ECONOMICAL FACTORS
– 11th Largest Economy
– An unpredictable (volatility) Mexican economy
• Devaluation of the Peso in 1995
• Expensive to export
BUSINESS, rediff. rediff.com. October 13, 2011. http://www.rediff.com/business/slide-show/slide-show-1-worlds-20-largest-
economies/20111013.htm (accessed November 10, 2011).
24. SOCIAL FACTORS
– Birthplace of tequila drinking market
– New target segment
• attractive women
• parties (minimalist and humorous, escape scene rather
on the beach)
– Changing consumer attitudes-healthier lifestyles
25. ChartsBin. March 10, 2011. http://chartsbin.com/view/1017 (accessed November 11, 2011)
26. TECHNOLOGICAL FACTORS
– Different Transportations
• Maritime (58%)
• Air
• Terrestrial (75%)
– Brewing technologies
– New advertising media
– Keeping up with technological innovations
Campuzano, Sandra, Lucia Castanedo, Alexandra Bell, Eloise Lill Anderson, Christian Brockschnieder, and Yan Tat Chan.
Globalization Seminar: The Success of Corona Beer as a Worldwide Company. Group Analysis, September, 2007
28. LEGAL FACTORS
– Laws controlling advertising
– Specifications of the packaging –National
Regulations
– Increased regulations by governments concerning
alcohol distribution and production
• Drunk driving
• Health effects both short term and long term
29. Market Development Diversification
•Domestic Markets •Sold the same beer but
•International Markets diversified by moving into an
New •Distributors international arena and enticed
•No Specific Demography the international consumer.
•Not targeted at one type of •Made the market crave for its
consumer originality rather than change
itself to suit the market
Market Penetration Product Development
MARKETS •Ad campaigns concentrated on •Started with Modelo
the beer only. •Improved to Corona, Corona
•Escape from everyday life light, Corona Extra etc
•Absorbed tax instead of •Gave allowance to the
passing it on to consumers. experienced international
•Made strong ties with distributor to handle majority of
international players who were international related
Existing the best in the market in there responsibilities
localities. •Acquiring more distributors to
•Joined hands with market increase international alliances
leader Anheuser Busch. and generate more revenue.
Existing Products & Services New
32. Threat of Substitutes – high threat
Threat of New Entrants – low threat
Bargaining Power of Buyers – moderate
threat
Bargaining Power of Suppliers – low threat
Intra-Industry Competition – high threat
34. Strengths
• Mexico’s Largest Beer production & distribution
• Corona Extra – 4th Best Selling beer in volume
• Market Leader - No. 1 selling import beer in US
• Distributors absorb taxes without passing to
consumers
35. • 62.8% market share in Mexico 2007 (case
study)
• Brilliant and unique marketing campaign
• Distributors in US well established
36. • Strong brand image
• Company has a long and well established history and
experience in the beer market
• Grupo Models has an extensive network of distribution
channels throughout 159 countries and the company is
ranked as the 27th On the list of global imported
Premium beers
• Highly differentiated product
37. Weakness
• Lack of partners in the United States
• Distribution costs rising since they refuse to brew in other countries
• Small in size compared to revenue, operations compared to major
competitors
• Missing opportunities with merging with other brewing companies
• Product positioning makes the product an occasional drink not a
frequent drink in the minds of the consumer
38. Opportunities
• Anheuser-Busch InBev significant interest in
the company
• Countries like Germany fond of beer
• China largest beer market after 2003
• Distributors absorb taxes – cost leadership
39. • Main revenue comes from Mexico and the
United States
• Major share in Mexico
• Establish a JV with Pepsi Co since they have a
fabulous distribution and customer relations
network
• Mexico dominated by only 2 brewing companies
40. Threats
• Heineken is Corona’s main competitor
• Increased Government regulations on the
industry
• FEMSA owns Oxxo, largest chain of convenient
stores in Central America
• FEMSA major competitor in Mexico
41. • Rumors of mergers and acquisitions between
large players in the beer industry
• Beer isn’t considered as a healthy product
• Increase in drunk driving and other legal
laws can reduce sales in the industry
43. Product
• The product has been modified several times in order to be able to
be put on the market in 80 countries
• A special aspect is that the Corona logo is engraved on the package.
• It has become a tradition to drink Corona straight from the bottle
with a wedge of lime inserted into the neck to add flavor.
44. Price
• Premium pricing strategy in the US to position as an Imported beer
• Advantage over competitors like Heineken as distributors absorb taxes
45. Place
• To reach customers most effectively, they rely on an extensive distribution
network and services-oriented sales force that ensures the company’s
products are available in the right time at the right place.
• Provides a high level of service to each point of sale with segmentation by
type of clients and by having differentiated execution. Domestic
distribution also includes the Extra chain of proprietary convenience
stores.
46. Promotion
• Corona’s advertising theme had emphasized the “fun, sun,
beach” theme since its inception. The original “vacation in a
bottle” Ads was filmed in Mexico and kept simple and clear
with a beach environment, with little music.
• Promotion is done at high-level sponsor events such as racing
car events, world football matches, the Paris – Dakar racing
challenge, major exhibitions and international fairs around
China and the US.
47. Process
1. Malting
12.Continenal
Airlines 2. Soaking
3. Wort
11.Wholesale Filtration
Process 4.Wort Boiling
10.Bottling
5. Separation
9.Filteration of regs
6.Wort
8.Ripening Cooling
7.Fermentation
48. People
• The company has developed its own integrated
system of continuous employee training and
development through which employees are able to
increase their skills.
Physical Evidence
• Billboards, Posters, broachers and other props.
• Bottle and canned packaging in supermarkets.
49. Competitors
Domestic Competitor:
FEMSA : Significant competition due to high quality and its top‘6
best-tasting beers in Mexico. It also entered into marketing
partnership with Heineken to grow its share in USA
International Competitors:
• Anheuser-Busch: 50% shares in Grupo Modelo and partnered
with it to distribute its products in Mexico.
• Heineken: Main import competitor in US, & plan to be the
market leader through aggressive marketing campaigns.
50. Total Imported beer in the US
2005-2006 (Thousands of cases)
2005 2006 Change
Corona Extra 104,815 115,295 10.0%
Heineken 64,350 69,050 7.0%
Modelo Especail 14,635 19,757 35.0%
Tecate 15,800 16,906 7.0%
Labatt Blue 13,315 13,715 3.0%
Corona Light 9,610 11,147 16.0%
Heineken Light 7,500
Source : Grupo Modelo 2006 Annual Report
51. Market Segmentation
Target Market
• Developed an image of a beer that would
attract everyone
• Enticed non beer drinking population to drink
beer specially females
• Targeted on the working class as an escape
from reality
• Targeted on people who appreciates an
adventurous life style (Surfers)
53. Demographics Psychographics Geographic's
Primary Target The weight and image Entire US, Urban centers
Characteristics: conscious mature upper- of 500,000 or more
Age: 35 & above middle class who might
Gender: Male & Female see a rejuvenation effect
Income: $60,000 by associating with this
Lifestyle: Semi- new hip and healthier
Professional, Professional beer.
Secondary Target Consumers who engage in Entire US, Especially
Characteristics: leisurely activities, such as Southwestern US
Age: 21 to 34 lounging, socializing, and
Gender: Male & Female vacationing in tropical
Income: Low to Middle destinations, whom value
Lifestyle: Blue Collar / relationships, relaxation,
Retail / Semi Professional and individuality
Language: English
speakers, Spanish spoken
in the home
54. Demographics
80.00%
70.00%
60.00%
50.00%
40.00% Age between 21-34
30.00% Age 35 & Above
20.00%
10.00%
0.00%
Bud's Coor's Miller Lite Corona
Light Light Light
Source: The demographics of beer. - Free Online Library. (n.d.). Retrieved 11 08, 2011, from Free
News, Magazines, Newspapers, Journals, Reference Articles and Classic Books - Free Online Library:
http://www.thefreelibrary.com/The+demographics+of+beer.-a0134384833
55. Market Strategies
• Brilliant and unique market campaigns which was a direct result of the international
strategy.
• Distribution contracts with companies that had local knowledge of the market s and gave
them autonomy to market the product fittingly yet, maintained an active involvement in the
decision making.
• Developed an image of a beer that would attract everyone.
“Fun in the sun” campaigns it sold the idea of escape and the idea of leaving behind everyday
life for one that is relaxing.
• Modelo set up Procermex Inc, a subsidiary whose purpose was to coordinate, support and
supervise the two distributors. Which proved to be a further strength.
56. Product Development
• Sugar free beer for the health conscious consumer.
• Corona mainly into lager, huge potential in stout beers that Groupo
Modelo has not looked into
• Ladies for instance a pink light beer
• Flavored beer
57. Positioning Strategy
• Corona’s position is all about the fantasy that
drinking the beer will transport you to a
tranquil sandy beach where all your stresses
of the modern world are washed away.
58. Value
Proposition
• In the US, Canada, Australia and UK Corona
Beer have become increasingly popular
among “trendy” or fashion conscious
consumers.
• It’s viewed a cool and stylish “designer” beer.
60. Recommendations
• Increase Marketing budget and engage in focused
advertising towards specific target segments such as
Young people, Women, Health-conscious consumers etc.
• Develop efficient supply chain to better manage the
inventory and increase availability of its product in stores.
• Expand in International market especially China &
Australia which are the leading consumers of beer.
• Expand its portfolio of “malternatives" in light of the
social changes leading to increased popularity of low
calorie drinks and flavored alcoholic beverages.
61. Thank You
Enjoy your weekend with a
Corona Beer.