Good Example Of Report On Corona Beer: From A Local Mexican Player To A Global Brand

What strategies did Corona use to expand in the United States? Why was it so successful?

The first strategy that Corona used in its expansion endeavors into the United States is the partnering with local US distributors such as Barton Beers Limited. Barton Beers Ltd. was one of the largest beer importers in the United States supplying the top Western States of the US. By including the Gambrinus Inc. in 1986 as a second distributor the company managed to boost its credentials as a chief exporter of beer in America. The two distributors covered different 25 states that brewed healthy competition among them that strengthened the expansionist plans of Corona beer.
Another strategy that helped the company in its expansion plans is the decentralization of functions to its affiliates in the United States. Corona beer had a strong pact with all its distributors that they would be in charge of all other functions in the United States except for production. This pact enabled the company to tap into the competencies of their American-based affiliates.
Aggressive marketing was the next strategy that was used by the beer company. The Corona Beer marketing campaign was effective in that it managed to associate itself with “fun in the sun” slogan. The slogan was captivating to the market in need of exotic beer. The marketing campaigns were geared towards all market segments. It tried to veer off the traditional testosterone-driven market. The advertisements by the company mainly focused on the idea of escape from the daily routine as a form of relaxation.
How does the culture in the United States differ from that of Mexico? In what ways does culture have an impact on the global beer industry?
The American culture is liberal as compared to the Mexican, which pundits term as conservative. The liberal nature of the American market made it easier for Corona Beer to gain market dominance easily. The entry into the market was fostered by the fact that many Americans were willing to sample exotic beer out of the liberal nature of their market and even their culture. The experimentation, for Corona’s Beer, was made a success by the rare reviews made by American natives living near Mexico that had sampled it. This shows that culture in many ways has an impact on global business. The liberal culture of the United States enabled the Corona Beer to be embraced easily hence its ease in expansion. The conservative nature of Mexico, for instance, may not foster external investors beer companies despite the country be the eleventh in global consumption of beer.
What recommendations do you have for industries entering the U.S.?
Industries in US should take into consideration various factors. The first ought to be product promotion. Product promotion in this instance entails advertisement and public awareness of products. This ultimately translates to massive investments in the product advertisements and commercials. Focusing on Corona Beer, their success is greatly linked to the amount of funds they invested in advertisement and marketing campaigns across marketing. The next recommendation is partnership with local companies. By teaming up with local companies, industries can easily tap into the competencies and networks of these companies. This will not only enhance effectiveness but also mitigate risks involved with new markets. The entrance into these markets also requires enough market research. The survey of the American market demands an industry invests in proper surveys that will help it understand the American business landscape. The gaps within the market as well as the fiscal and monetary policies can be taken note of.