Business strategy Corona
Executive Summary
Cerveceria Modelo S.A. was formed in 1992 focusing on Mexico City’s and surrounding areas’ markets. Its first beer was Modelo followed by Corona. It then started exporting its beers to the US. Corona has become very popular and was positioned as premium import. It got the first rank in imported beer in the US. However, its rivals, domestically and internationally, didn’t let it pass so easily. They reacted quite intensely. Modelo lost the first place position in its local market to FEMSA but it still kept its place in the US market. Its rivals never stop reacting that’s when Modelo’s facing tough times. This report provides analysis, evaluation, and recommendation for Modelo.
Industry competitive environment It is currently at the multi-country level since there are still a lot of untapped markets around the world especially in Asia and Africa, hence, possibility in market growth which will lead to global competitions. The key players are consolidating their businesses to help achieve global stand points.
Major Competitors
Heineken: this is Modelo’s main rival in the international market. Heineken markets its beer as a premium import – old and respected recipe for taste – “high quality product.” It is very controlling over its marketing and advertising strategies, however, campaigns weren’t getting to local customers. Thus, fail to increase the market share for quite some time. Heineken is the only dominant importer that has local brewery. It owns and operates its distributors.
FEMSA: this is Modelo’s main rival in the domestic market, Mexico. It scored top seven best tasting beer in Mexico. In short, FEMSA produces beers that are more suited to the local’s taste better than Modelo. Moreover, FEMSA has forward vertical integrated its strong distribution outlet, OXXO, a well spread convenient stores. It is also a sole distributor of Coca-Cola products in Mexico and Central America. It tried to strategically ally with Heineken in the US
Cerveceria Modelo S.A. was formed in 1992 focusing on Mexico City’s and surrounding areas’ markets. Its first beer was Modelo followed by Corona. It then started exporting its beers to the US. Corona has become very popular and was positioned as premium import. It got the first rank in imported beer in the US. However, its rivals, domestically and internationally, didn’t let it pass so easily. They reacted quite intensely. Modelo lost the first place position in its local market to FEMSA but it still kept its place in the US market. Its rivals never stop reacting that’s when Modelo’s facing tough times. This report provides analysis, evaluation, and recommendation for Modelo.
Industry competitive environment It is currently at the multi-country level since there are still a lot of untapped markets around the world especially in Asia and Africa, hence, possibility in market growth which will lead to global competitions. The key players are consolidating their businesses to help achieve global stand points.
Major Competitors
Heineken: this is Modelo’s main rival in the international market. Heineken markets its beer as a premium import – old and respected recipe for taste – “high quality product.” It is very controlling over its marketing and advertising strategies, however, campaigns weren’t getting to local customers. Thus, fail to increase the market share for quite some time. Heineken is the only dominant importer that has local brewery. It owns and operates its distributors.
FEMSA: this is Modelo’s main rival in the domestic market, Mexico. It scored top seven best tasting beer in Mexico. In short, FEMSA produces beers that are more suited to the local’s taste better than Modelo. Moreover, FEMSA has forward vertical integrated its strong distribution outlet, OXXO, a well spread convenient stores. It is also a sole distributor of Coca-Cola products in Mexico and Central America. It tried to strategically ally with Heineken in the US