Corona Beer

Grupo Modelo S. A. de C. V. was formed in 1992, and unresolved its first brewery in 1925. Its Mexicos largest beer producer and distributor. Among the conjunctions many brands was electric glow Extra, which had been the macrocosms fourth best selling beer in terms of volume. Under the operational comportion of Diez, Modelo started producing aureole in clear quarter bottles in response to consumers preference for clear glasses. It became the strength and let it let popular. Whats more, Modelo bought the brands and assets of Toluca Mexico Brewery as well as the countrys oldest established brand of beer, Victoria.It led the company to have a unanimous growth. At this moment, the opportunity was that more or less local anesthetic competitors were selling beer to the American host for WWII, so Modelo aimed to concentrate domestic market and improve distribution methods and production facilities within Mexico. Another economical factor was Mexico became industrialized, and its infrastructure allowed for large scale distribution. Because of the two factors, Modelo was successful to be a local leader. And Corona was listed on the Mexican Stock exchange in 1994.Mexico, the worlds 11th most populated country was one of the largest beer markets in the world and its also the birthplace of most wealthy tequila. So theres no doubt Modelo have lots of competitors, especially FEMSA. Though Modelo had create up a strategic alliance with Anheuser-Busch to broaden its worldwide impact, FEMSA was distributing Coca-Cola products in Mexico and had a partnership with HeinekenModelos multinational competitor to attack the U. S. Market. Heineken be after to be the market leader in US finished aggressive campaign.So Modelo made efforts to be more competitive. According to Modelos expanding abroad, Corona distributed by Amalgamated hush Products Inc, and because of its unique products, it had become the second most popular import beer in United States. Then, a politica l problemcoupled with federal excise evaluate on beer made Coronas distributors collect the tax rather than pass it on to consumers. However, it turned to be Coronas strength that the sales increased ever since and Modelo also took advantages of NATFA environment.As a result, Modelo was exporting five kinds of beer to United States and three brands ranked among eighter first. Since its entrance into the American beer market, Corona had built a market campaign around the idea of pastime in the sun. Its a brilliant and unique market campaign. It was born out of Modelos international expansion strategy of giving autonomous control to experienced, local distributors. It targeted on women and party scenes. Then Corona was able to get the non-beer-drinking population to drink beer by its unobtrusive and bland taste.Furthermore, with its advertising slogan, it built strong images of escape, enjoyment and relaxation successfully. However, Modelo were withal facing challenges. Though FEMSA did not experience the same in the international argonna as Modelo, it is the exclusive distributors of Coca-Cola and Central America. Though Corona surpassed Heineken as Ameriacas top imported beer, but its because the failure that Heineken always advertising for the superior quality ,with little attention given to any other aspect of its brand.So Medelo had to face its new status to make its success story a sustainable one. To conclude, for Modelo, its strengths are 1) Mexicos largest beer producer and distributor 2) Corona Extra had been the worlds fourth best selling beer in volume 3)Top imported beer in US 4) Distributors absorb the tax rather than pass it on to consumers 5) Brilliant market champaign 6) Strong brand image. Its weaknesses are 1) Lack of merger with other companies 2) Lack of partners. For the direct environment, it targeted those non beer drinking people especially women.Modelos direct competitor in Mexico is FEMSA. Its the distributor of Coca-Cola and C entral America and it has high quality and have a partnership with Heineken to attack the US market. The international competitor is Heineken. Its main importer in US and it planned to be the market leader through market campaigns. For the global environment, the political factors are 1)North American barren Trade Agreement (NAFTA) environment. 2) Federal excise tax -absorb the tax rather than pass it on to customers. The economical factor is Mexico is the worlds 11th most populated country.The social factors are 1)Mexico is the birthplace and still home of the most affluent tequila market. 2) It targeted non beer drinking population especially women. The technology factor is the advertising movement and the legal factors are laws and regulations of alcohol. Above all, Modelo can focus on advertising more to increase the tot up of non beer drinking consumers and develop more customers to establish a supply chain to make products available in more places. Whats more, Modelo can al so expand its international market not only in US and Europe but in Asia.