Post on 30-May-2015
description
BMDS 6380Grupo Modelo
Nader AhmadiTareq Alabdulgader
Viola LentsJoe Sanchez
Ernesto Weisson
New Marketing Strategy
• In October 1998 Grupo Modelo was producing 47 million cases of Corona Extra and Corona Light.
• Today it is producing over 94 million cases or 34 million barrels.
• It has captured virtually every major beer market in Latin America with one exception, Brazil.
• Although, it enjoys a commanding position in the U.S. beer market there is a need to diversify.
• Lower prices, less calories and the need to introduce time for relaxation with a refreshing taste of a recognized high quality beer.
http://findarticles.com/p/articles/mi_m0BEK/is_10_6/ai_54760153/pg_2/?tag=content;col1
Strategy One
http://www.picturejockey.com/pblog/2008/11/corona_bottle_lying5.html
New Marketing StrategyWe mapped out graphically how the major beer brands see themselves , to check if there's a position ready for the taking based on potential preferences of brand, age groups, market segmentation and common consumption.
http://www.stealingshare.com/content/1148399654031.htm
New Marketing StrategyWhen it comes to regular and light beers the preference seems to favor Corona and with the introduction of Coronita, this translates into less calories, carbs, and lower levels of alcohol.
http://www.stealingshare.com/content/1148399654031.htm
PricingNew lower prices have been recently been introduced:•Six-pack of Corona Extra $7.99
•Six-pack of Coronita $6.99
http://www.picturejockey.com/pblog/2008/11/corona_bottle_lying5.html
Alcohol Carbs
(ABV) (grams)
Bud Ice Light Anheuser Busch 5.00% 115 7.5g
Bud Light Anheuser Busch 4.20% 110 6.6g
Bud Light Lime Anheuser Busch 4.20% 116 8.0g
Coors Light MillerCoors 4.15% 104 5.3g
Miller Genuine Draft Light MillerCoors 4.20% 110 7.0g
Miller Lite MillerCoors 4.20% 96 3.2g
Sam Adams Light Boston Beer 4.05% 124 9.7g
Corona Light Grupo Modelo 4.50% 109 5.0g
Coronita - (one) 7 oz Bottle Orignal Beer Grupo Modelo 4.60% 86 8.0gHeineken Heineken 3.20% 99 6.8g
Beer Calories, Beer Alcohol, and Beer Carbs
Brand BreweryCalories
12 oz
Light Beer Calories & Carbohydrate Content
http://www.beer100.com/beercalories.htm
http://www.realbeer.com/edu/health/calories.php
MedianMargin of
Error
1 Maryland 70,005 +/-4212 New Jersey 69,674 +/-3543 Connecticut 68,411 +/-5844 Alaska 66,293 +/-1,1295 Hawaii 66,034 +/-9326 Massachusetts 64,684 +/-3617 New Hampshire 63,989 +/-5968 California 61,154 +/-1739 Virginia 61,044 +/-347
10 Minnesota 57,795 +/-275
State
Median Household Income
• Targeting markets by income level• Figures are for 2008
http://factfinder.census.gov/median
Gender Earnings in the U.S.
• Targeting markets by gender and earning • Earnings in the past 12 (2008) months by gender:
Subject Total Margin of
Error Male Margin of Error Female
$50,000 to $64,999 14.30% +/-0.1 15.40% +/-0.1 12.60%
$65,000 to $74,999 5.60% +/-0.1 6.30% +/-0.1 4.60%
$75,000 to $99,999 8.40% +/-0.1 10.00% +/-0.1 6.20%
$100,000 or more 9.90% +/-0.1 13.20% +/-0.1 5.20%
Total 38.2 % 44.9% 28.6% http://factfinder.census.gov/gender
Median Age by State
Geographic area Median
1 Maine 422 Vermont 41.23 West Virginia 40.64t Florida 40.24t New Hampshire 40.26 Pennsylvania 39.97 Connecticut 39.48 Montana 39.3
Overall Rank
Targeting is 40 years old group
Geographic area Median
41 Colorado 35.744 Arizona 35.145t District of Columbia 34.945t Georgia 34.947 California 34.848 Idaho 34.449 Alaska 33.350 Texas 33.2
Overall Rank
Targeting is 30-35 years old group
http://factfinder.census.gov/median
Strategy Two
Expansion into Middle East & Africa
• Environmental Analysis:- Total of 23 countries- Population of +200 Million- Countries in N. Africa, W. Asia
http://en.w
ikipedia.org/wiki/File:G
reaterMiddleEast1.png
Expansion into Middle East & Africa
• Religion - Muslims represent 93% in the Middle East - About 20% of the World Population
http://en.w
ikipedia.org/wiki/File:W
orld_Muslim
_Population_Pew_Forum
.png
Expansion into Middle East & Africa
• Government & Culture- Islamic Shariah Law
http://bonvivantevents.com
/wordpress/w
p-content/uploads/2008/12/bigstockphoto_no_alcoholic_beverages_2210301.jpg
http://asadalthought.files.w
ordpress.com/2009/08/m
ecca-mosque.jpg
Expansion into Middle East & Africa
• Competitor & Market Analysis:- Non-alcoholic flavored beerMajor 3 players in the market: Al Ahram Beverages Co ( Fayrouz) Al Aujan Industries( Barbican) Feldschlössen Getränke AG ( Moussy)
Expansion into Middle East & Africa
• Al Ahram Beverages Co- Established 110 years ago- From government to private in 2002- 5 production facilities in Egypt- Total control of Egypt and North African
market share - Recent expansion in the GCC’s
Expansion into Middle East & Africa
• Al Aujan Industries Co. LTD- Established in 1905- Control 40% of the market- First flavored beer- Cover 100% of GCC’s- Export to +35 countries
http://www.webcreationz.co.uk/image-archive-Beermats-Barbican-Alcohol-Free-Lager-beermat-from-the-1980s.htm
Expansion into Middle East & Africa
- 2 Manufacturing facilities - 3 Regional offices- Many direct & indirect distribution channels
http://www.aujan.com/web/
Expansion into Middle East & Africa
- Heavy promotion & advertisement campaigns targeting younger generation with different lifestyles
Commercial
http://profile.ak.fbcdn.net/object3/1835/38/n84312426993_4581.jpg
http://w
ww
.buzberry.com/w
p-content/uploads/2009/05/barbican1.bmp
Expansion into Middle East & Africa
• Feldschlössen Getränke AG - Established more than 100 years ago- First to introduce non-alcoholic beer- About 44% market share- Offer variety of flavors
http://www.moussy.com/eng/index.html
Expansion into Middle East & Africa
- Manufactured in Switzerland and distributed through more than 20 distributers
- Targeting younger generation segment
http://www.moussy.com/eng/index.html
Expansion into Middle East & Africa
• Opportunities for Grupo Modelo:- Access to cheaper raw material & labor- Economic boom in emerging markets- Rapid beer market growth
http://northstream.se/wp-content/uploads/2005/02/VoIP-A-Threat-and-an-opportunity-for-Mobile-Operators2.jpg
Expansion into Middle East & Africa
• Threats to Grupo Modelo:- Very competitive market- Political turmoil- Foreign businesses & political relations
http://www.mnvalues.org/wp-content/uploads/2009/10/boycott.jpghttp://www.speedysigns.com/images/osha/large/DANGER15.gif
Strategy Three
http://www.picturejockey.com/pblog/2008/11/images/corona_extra.jpg
Listing on a Major Exchange
http://investmentdiv.com/wp-content/uploads/2010/02/NYSE.jpg
http://www.tk-truninger.ch/hdr_nyse_logo.gifhttp://ceoworld.biz/ceo/wp-content/uploads/2009/08/NASDAQ-riga.jpg
U.S. Financial Markets
NYSE• Largest stock exchange in
the world• Market value $9.57 T• Share turnover $7.99 T• Merged with Euronext , the
fourth largest stock exchange, in 2007 to form
NYSE Euronext
NASDAQ• Third largest stock exchange
in the world• Largest exchange in terms
of shares traded• Market value $2.77 T• Share turnover $12.26 T• Is attempting to merge with
the London Stock Exchange (LSE)
What are the Costs?
• Increased reporting and
disclosure requirements
• Increased pressure on
executives
• Additional scrutiny by
analysts
• Exchange listing fees
http://thumbs.dreamstime.com/thumb_223/1199582734pjQQs8.jpg
What are the Benefits?
• Market segmentation• Market liquidity• Information disclosure• Investor protection “Bonding”• Broadening product identification
NYSE Videohttp://www.ppr.info/images/global_markets.jpg http://www.bus.miami.edu/_assets/images/news-and-media/recent-news/GBF_logo_globe-web.jpg
Any Questions?
http://www.neonsign.com/eng_tackers/images/coronabottlecaptin.jpg