Corona Beer: From a Local Mexican Player to a Global Brand



Corona Beer: From a Local Mexican Player to a Global Brand

Introduction

Entering into a new market tends to involve various risks and factors, which need to, be considered. In the context, of the beer it becomes rather recalcitrant since there are multiple players involved and there are several factors upon which the game needs to be played. Although, the basics of this industry are the same, as in the past the one thing that has changed are how the brands tend to be marketed and their acceptability level among the consumers. However, there are various factors which need to be understood before decoding the bigger picture.

Discussion

There has been a change in the context of the beer industry of yester years and today although the intensity of the differences remains to be low. Today, the main difference that exists between brands of today is their ability to market themselves. Along with the support of vertical integration to successfully identify the domain which needs to be targeted. For any product to become relevant to any market, it needs to adopt the local factors along with the image to back it internationally. The main reason behind the success of Modelo on the international and domestic front caters to the ability to successfully protect their image over the time. Supported by an efficient sales and marketing strategy both internationally and locally, and due to this they are able to compete with the arch rival FEMSA.

The world is changing and the market related to the beer industry is also witnessing a decline. It would be safe to state that developed markets in the context of the beer consumption have seen a decline over the recent years and it now has taken the shape of a trend. Whereas, in many emerging or developing markets the economic, cultural, structural improvements in the quality and plea of the beer brands have resulted in strong organic growth in the beer industry. This have forced the companies to explore the ways of entering in those markets. Due to which the merger of the international brands with the local brands of the respective markets have seen a rise.Thus, in today's context before the companies tend to launch themselves they need to carefully study and address the reason behind the decline in the beer industry. Many experts tend to agree on the fact that the recent recession has been the reason for the overall decline in beer consumption. Soaring fuel prices which tend to raise the price of the product and the widening of the unemployment rate tends to be the major factor in the decline of the beer consumption as a whole (Anonymous, 2009). Therefore, to explore the new markets seems to be a viable option for the existing players.

Despite the success enjoyed Grupo Modelo they still need to focus largely on the global expansion and the ability to enter new markets. Plus they also need to focus on strengthening ...