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Case Title:

Corona: The Mexican Beer's Marketing Strategies in USA

Publication Year : 2005

Authors: Sujatha & T. Phani Madhav

Industry: Beverages

Region:USA

Case Code: MKS0030

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Corona, the beer brand of Mexico's Grupo Modelo Company, is the number one imported beer in the USA since 1997. The brand's US importers Barton Beers and Gambrinus had played a vital role in making Corona popular and profitable in the country. In early 2004, the changing demographics, competition and retail consolidation posed many a challenge to Corona. However, Carlos Fernandez, Chief Executive Officer of Grupo Modelo reorganised the company's marketing strategies and concentrated on the growing Hispanic market through new ads and promotional offers to improve the sales. Still, Grupo Modelo faces a dilemma regarding the distribution strategy to be adopted in the US post-2006, as Grupo Modelo's contract with Gambrinus is to end in 2006.

Pedagogical Objectives:

  • To discuss the marketing strategies followed by Grupo Modelo model in the US
  • To discuss the dilemma the company faces regarding the channels of distribution.

Keywords : Grupo Modelo Brewing Company, Marketing Strategies Case Study, Corona Extra, Barton Beers, Gambrinus Inc, Import contract, Competition in US beer market, Differentiation strategies, Distribution dilemmas

Contents:

  • Corona in USA: The Challenging Times
  • Corona's Marketing Strategies in USA
  • Distribution Dilemmas

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