Beer and Corona Essay

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Corona is a Mexican beer brewed by the company Grupo Modelo, first established in 1925. At first, the beer started off as a thirst-quencher for mainly manual labourers. It became quite appealing to southwestern Yuppies in the USA, and later asked the brewers from Mexico to continue focusing on producing the beverage. Today, this well-known lager is one of the most famous alcohols being sold internationally (the 5th largest-selling brand in the world, sold over 150 countries). Our goal is to continue on the popular legacy of Corona by building a Corona store in Whistler, British Columbia, bringing a new culture that can help increase sales.

02. Mission Statement ¢We want to expand Corona into the new geographic market in 2009, and to raise our sales by that same year, and to keep increasing in 2010, and by 2011. ¢Because Greater Vancouver, British Columbia is one of the most multi-cultural places in Canada, its an opportunity to add a new kind of culture into the province by bringing the influence of Coronas life style into the province by opening a Corona store in the year 2009. 03. Situation Analysis i. The Internal Environment.

Corona as is one of the most famous brand name beers from Mexico brewed by Grupo Modelo, currently being sold in liquor stores and bars everywhere in British Columbia. Crown Imports is a joint venture that imports, distributes and markets the Modelo products and other beer brands. The Crown portfolio includes Corona Extra, Corona Light, Modelo Especial, Negra Modelo, Pacifico, St. Pauli Girl and the Tsingtao beer brands. Constellation is also associated with Grupo Modelo. This organization is known to be the leading international producer and marketer of beverage alcohol brands.

Their portfolio of Mexican beer, such as Corona, is the undisputed imported beer leader in North America. Constellation operates more than 60 production facilities, has over 9,200 employees worldwide and sells or markets products in North America, South America, Europe, and the Asia/Pacific region. ii. The External Environment Customer Analysis The main targets are men and women between the ages of 19 to 45, particularly the party crowd for special occasions (such as BBQs) and also those who enjoy traveling and relaxing at their vacation spots (ex.a beach in California or a cabin in Whistler) Non-customers Not every beer drinker may enjoy Coronas bitter taste.

Because there are many different beers being sold at different prices, there may be those who, for instance, prefer to purchase cheaper alcohol Buying Purchases ¢Coronas are usually sold at the following places: oThe BC Liquor stores this is usually the main store most customers go to buy alcohol, especially Corona beer. They are being sold at different kinds of packaging. oCold Beer and Wine Stores these are private-owned liquor stores.

And unlike the BC Liquor stores, their operation during late hours is a good advantage for beer drinkers who want to purchase Corona late at night. Competitive analysis ¢Canadian Beers are heavily advertised in local radio and Canadian television stations. For instance, because Canadian beer is part of the culture of Canada, they usually promote themselves during a Canadian hockey game, where most viewers would be watching the advertisements during the commercial breaks. oLabatt Labatt Blue claims to be the best-selling Canadian beer in the world, according to their official website.

The beer is known for its crisp, refreshing taste oKokanee its a popular beer brewed from Creston, BC. Well-known for their comedic TV ads oSleeman a Canadian beer known for having different brands to suit individual tastes (ex. Sleeman Clear, Sleeman Cream Ale, Sleeman Honey Lager) ¢Other beers from foreign countries are mainstream in British Columbia besides Canadian beers¦ oBrahmas A beer made from Brazil. As mentioned, its very similar to Corona, but it has a sweeter taste oHeineken a famous Dutch beer, brewed in many different countries Technological.

¢Corona beer comes in a few different kinds of shape and sizes Cans Corona beer cans are sold in stores either individually or in six packs; a good advantage for those who may not drink as much. Bottles it is the most traditional form being sold in stores and/or served in local bars. Big bottles This contains 710 ML of Corona beer. It is specially made for those who would want a greater quantity of Corona beer 04. S. W. O. T Analysis Strengths ¢Corona is one of the top selling beers in the whole world. And with the rise of the Canadian dollar, we get more business opportunities of Corona beer being delivered to Canada more often.

¢Unlike other beers, its the only beer that can actually be enjoyed with a piece of lime or lemon, which makes it very unique by giving it a more authentic taste. ¢Corona has been identified as the ideal laid back kind of beer to drink for relaxation, especially when on a vacation. Weaknesses ¢Corona is not the kind of alcoholic beverage that beer drinkers would enjoy, sitting at home in their living room since its more of a re-treat and relaxation themed beer. ¢Corona is usually not the common beer to drink when it comes to watching sports, especially when enjoying Hockey Night in Canada.

Normally Canadian beer drinkers who watch sports would prefer Canadian beer. ¢Those who drink Corona in clear bottles have to be aware that it should not be left out in the scorching sun too long, otherwise the suns heat will ruin the taste of the beverage. Opportunities According to a survey voting poll from the official Corona website, Whistler BC has been voted as the number one vacation spot to enjoy a Corona. This would be a great opportunity to open up a Corona store in Whistler, selling both Corona beers and Corona merchandises. Threats.

oCompetition is the main thing to be aware of. Our competitors in British Columbia are mainly Canadian Beers, particularly Molson and Sleeman for instance, since we see their great amount of advertisements in the Canadian media. oCorona drinkers should be aware that it should not be left out in the scorching sun too long, otherwise it will damage the taste, since most Corona beers are served in clear bottles. oBecause Coronas brewed in Mexico, it will take a bit of time for the beer to be transported to BC, therefore also creating a cost for shipping. 05. Marketing Objectives?

To raise British Columbias penetration of the 19 to 45 age group and become the dominant brand for premium beers within this segment market. ?To obtain a 35% increase in profit of Corona beer sales in B. C. by the end of year 2011. ?To increase 10% in market share in Canadian premium beer market by the end of year 2011. ?To exceed a volume of 5 million CND in store merchandise and beer sales by the end of year 2011. 06. Target Market I. Description and Size of the Target Market Our main target market, the age group of between 19 and 45, is based on the fact that our product is most popularly consumed within that group.

During our research on the past marketing strategies of other beer companies, it was found that the cultural varieties in B. C. will not cause any unexpected difficulties. Rather, since Corona is a foreign product from Mexico, the cultural varieties will play a positive roll in our marketing project. So within the various cultural backgrounds, we chose the age between 19 and 45, not only because people in that Age group consume beer in larger quantity, but also because they happen to be more attracted to the Coronas brand concept like the beach, vacation, party, and so on. Following is the size of the target market in our geographic area.

Target population of BC in year 2007 20-24 (Age)25-29 (Age)30-34 (Age)35-39 (Age)40-44 (Age) Male158,658149,115143,661158,530172,253 Female151,782146,557144,735161,583174,309 Total310,4382995,672288,396320,113346,562 Total: 1,561,181 (1. 5 million) Also, the target is expected to grow at the level of 1. 39% a year which will eventually reach at around 1,604,883 in 2010. After we added up the number of people who will be traveling B. C in next two years, we came down with the conclusion that the buying potential of our target is very strong and even growing. II. Buying Behavior and Trends affecting the Target Market.

The Behavior of young people in our local target is not very different from what we expect it would be. However we will start conducting more detailed marketing strategies to be detached to the target closely. In B. C. , Hockey is one of the most beloved sports and people tend to hang out more at the bar to drink beer. Since our theory of co-relation in between sports and beer is very relevant, the marketing strategy will be broadly related to the behavior of young people who loves watching, enjoying, or even for someone who work in sports area. Everybody loves to be away from all sorts of stresses from daily life and goes to vacation.

Our geographic target is B. C. which is one of the most famous vacation destinations in the world. As aforementioned in our SWAT Mix, there are several elements in our strengths that go along with the target. The main concept of Corona is the vacation. As all the young people love going out for vacation, it has a lot of potential to grow our sales in B. C. Furthermore, the biggest upcoming even to happen in BC will be the 2010 Olympics. This will actually boom up our marketing in many ways. The people from all around the world are coming to town and we believe there is no other chance that can be greater.

The behavior of our target market will change in many ways. First of all, the Olympics event is the largest sports festival of young people around the world. There will be a lot of media coverage, teams representing their nation, and visitors. Our corona store will be located in the middle of City in Whistler town so it will always be packed with all the visitors from other countries. We are not looking at this Olympic effect as a short run effect. After the event is done, we are predicting that the Olympic will bring a huge economic benefit through out the state which will bring the consumer demand for beer higher.

As our launch of the Corona Store in Whistler get its fame through out the Olympic, and the resort of Whistler become a lot more popular destination of vacation, the sales will continuously hit our target growth rate. It is assumed that the tourism stimulated by the Olympic will disappear in 5 years. But many experts concluded that it will not be the case in Vancouver since it has been the destination for vacation for a long time already and the Whistler already had its fame as a resort. Following is the information we researched regarding the various beer consumption demographics in U.S.

We believe these graphs are very similar to the behavior in Vancouver since the city itself is very close to U. S. and most of North Americans have similar behavior in many ways. These two graphs show the behavior of target market in general. They tend to attend more Sports and enjoy more of it. As briefly mentioned above, our co-relation theory of beer and sport is very strong and we believe that this behavior will generate greater potential to increase the total sale. Also, the second graph shows precisely why we select our target market of the ages between 19 to 45. 07.

Marketing Strategy Coronas marketing strategy is based on the promise of leisure and an escape. The primary target market consists of middle-upper class, professional adults between the ages of 19 to 45 who are willing to pay a little extra to drink premium beer, and for its added senses of relaxation and retreat. This select target market is also more likely to travel, to engage in outdoor adventures and activities. Each of the four marketing-mix strategies delivers the uniqueness of the brands image and perception of Corona to the target market selected above. Positioning.

Using product differentiation, Corona is positioning its products as adventurous and yet relaxing. Its products, including all alcoholic products and affiliated merchandises are vital elements to a stress-free, enjoyable vacation, hence the idea a beach in a bottle. Product Strategy We will introduce a real-time Corona merchandise store in Whistler, B. C. in 2009. In an online poll conducted by Corona, Whistler, B. C. was voted as the favourite Canadian vacation spot, hence the location.

The store is named Beach Corona. This is a strategic move that will help promote the Corona brand and its merchandises in general and even more so for the upcoming 2010 Winter Olympics. Beach Corona will carry all the existing line of accessories, apparels, coolers, and trinkets in store on sale, and there will also be an outdoor beach lounge area that serves Corona beers.

The main goal is to bring the ultimate vacation beer and its brand philosophy together with the best vacation location in B. C. The following is a sample list of the popular items which will be available in the store, due to the high numbers of inquires and purchase volume from online store sales. Item: Non-ApparelsPrice($CND).

Corona Shot Glass4. 99 Corona Nylon Backpack9. 95 Corona Gold Bikini39. 95 Corona Parrot Wooden Beach Chair44. 95 Corona Parrot Bucket15. 95 Corona Sliver Bucket15. 95 Corona Talking Bottle Opener8. 95 Corona Extra Bottle Opener2. 95 Corona Sandals Keychain2. 95 Item: Apparels Corona Yoga Pants29. 95 Corona Mens Black Sandals w/ Slide Strap18. 95 Corona Black Womens Platform Sandals18. 95 Corona Jimmy Buffett Parrot T-shirt9. 95 Corona Beach Scene Shirt12. 95 Corona Beachy Racer16. 95 Corona Flames Tee17. 95 Corona Fuchsia Retro Shorty14. 95 Corona Frilly Skirt18. 95 Corona Sun Skirt14. 95.

Corona Hooded Sweatshirt39. 95 Corona Yoga Hooded Sweatshirt34. 95 Corona Mens Racing Board Shorts37. 95 Corona Womens Lime Board Shorts37. 95 Corona Parrot Bikini39. 95 Corona Limes Bikini39. 95 Corona Nature Straw Acapulco Visor12. 95 Corona Twill Hat in Olive14. 95 Corona Cowboy Hat in Brown19. 95 Pricing Strategy Corona beer products and merchandises will continue to be priced competitively against its competitors, such as Molson and other mainstream brands of sports/casual wear. Assuming the dollar value of USD and CND is the same, we will price the merchandises in CND accordingly.

A pricing review will be conducted during the plan year based on the dollar exchange rate and extra freight costs of merchandises. Communication As stated above, the target market for Corona products appears to be middle-upper class working professionals who appreciate the good things in life. Ad pages and promotional articles will be placed in the lifestyle and sports section in newspapers such as The Vancouver Sun and The Province. We will also place spots in national magazines such as Chatelaine and Canadian Living, as well as local magazines like British Columbia Magazine and Coastlines.

The Corona promotional events will help promote not only the brand but also the Beach Corona store in Whistler, B. C. There will be 3 major events in the plan year on the most popular beaches in Greater Vancouver area, such as English Bay, Kitsilano, and Sunset beach. The main goal of Beach Corona tent events is to show the target consumers the Corona way to spend a perfect day on the beach, which includes a designated area of Beach Corona Lounge serving Corona Extra, and other fun activities and competitions such as Corona Chug-a-War and Corona Olympics.

The events will not only boost sales for Corona beers in the Greater Vancouver area, but also help advertise the establishment of the Beach Corona Store in Whistler, B. C. Distribution Retail locations for Corona beers is to remain at B. C. liquor and beer stores and licensed bar and restaurants. We will also obtain proper licenses for the Beach Corona Store in Whistler, B. C. in the plan year. In order to achieve our 4th marketing objective mentioned above, we will periodically organize in-store sales promotions at Beach Corona.

Also, we will incorporate more merchandise items with beer sales in retail locations, such as Corona coasters and key chains. 08. Financial Information I.

Pro-Forma Financial Statement / Projections B. C. Beer SalesBeach Corona In-Store Sales Year200920102011200920102011 Revenue20,000,00026,700,00023,630,000550,0002,470,0002,180,000 Expenses Production Costs2,750,0003,675,0002,650,00074,000283,000188,000 Distribution Costs3,850,0005,145,0003,710,000315,000384,000294,000 Marketing Costs4,400,0005,880,0004,240,000118,000303,00022,000 Profits9,000,00012,000,00013,030,00043,0001,500,0001,676,000.

Objectives35% profit increase ? Over 5 million CND in sales volume ? II. Marketing Plan Budget Start up (July-Sept, 09)200920102011 Building (Decor, furnishings, equipment))200,000 Rent and Utilities (Renovation period)35,000 Marketing and Promotion Van. Sun/Province 1/2page ad 10,000 BC Magazine/Coastlines full page ad 8,000 Hiring and Training15,000 Subtotal*1268,000 Ongoing (Oct. 09 ) Security (with amortization cost)10,00048,00036,000 Rent and Utilities (with amortization cost)20,000116,000102,000 Inventory (with respect to sales and freight)74,000283,000188,000 Staffing27,000160,000126,000.

Repair and Maintenance8,00060,00030,000 Marketing and Promotion Van. Sun/Province 1/2page ad25,00080,00010,000 Chatelaine/Canadian Living full page ad18,00038,000 BC Magazine/Coastlines full page ad 12,00035,00012,000 Tent Events (including print materials)45,000150,000 Subtotal*2239,000 Subtotal*(1+2)507,000970,000504,000 Total ($CND)1,981,000 09.

Reference List ¢BC STATS: Population and Demographics http://www. bcstats. gov. bc. ca/ ¢Beer Online Profit Guide http://www. progressivegrocer. com/progressivegrocer/profitguides/beer/index. jsp.

¢ Lifes A Beach For Corona Or Is It? BusinessWeek Online Articles http://www. businessweek. com/magazine/content/05_06/b3919098_mz058. htm ¢ What Beers all about: Molson Canadian Campaign Canadian Advertising Success Stories Online PDF Document http://www. cassies. ca/caselibrary/winners/Molson-whatbeersabout. pdf ¢Constellation Brands, Inc. Official Website http://www. cbrands. com/CBI/constellationbrands/ ¢Corona Extra Official Canadian Website http://www. coronaextra. ca/ ¢Corona Merchandise Store http://corona. orbitearthstores. com/.

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