Investigacion De Producto, Corona Extra

Professor Young
Marketing Research Methods X460.6

Product Research
Corona Extra











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Table of Contents



Introduction 3

Competitive Profile 3

Company Profile 6

Customer Profile 7

Product Profile 8

Product Pricing 10

Distribution 11

Product Promotion and Reviews 12

Conclusion 13

Annotated Bibliography 15

IntroductionWhat beer label that comes to mind when thinking crisp and light imported Mexican brew? Here is a hint. It has become one of the most popularly advertised beers in the world and most desired when vacationing on the beach! The unsurprisingly answer is the decedent Mexican cerveza, Corona Extra. In 1925, Corona was first produced in Mexico City by Grupo Modelo and began US imports to California andTexas officially in 1981. Now it can be found almost anywhere in the world.

Crown Imports currently imports Corona and Grupo Modelo’s other mainstream beer, Modelo Especial. Corona has enjoyed exceptional success in the US market. One of the top sellers produced by the Modelo group happens to be the prestigious Corona Extra, topping the import beer market in sales. From the televisioncommercials to billboards plastered all over our freeways, Corona has successfully reached the eye of many beer customers. The quality and taste of Corona is described as crisp, refreshing, and superb. So what makes this beer different from the rest? You can never find this quality beer on tap (in a keg) and it is bottled in clear bottles with blue Old English style writing.

Until 2008, consumersin the US were increasingly infatuated with what the world’s foreign countries had to offer. Imported beer enjoyed the same popularity. According to Jack Robertiello, author of Beverage Dynamics, the volume of imported beers had grown at a healthy 3.6% in 2007, with two imported beers (Corona and Heineken) making the top 10 best-selling beers in America.

However, since the start of thecurrent recession (in late 2007), imported beer sales have softened. Like so many other premium-priced products, they have lost sales to lower-priced alternatives. They have also lost to the growing craft beer niche segment. Beer shoppers face a choice between spending $8.99 on a six-pack of Corona Extra and domestic brews for only $6.49. Despite the economic downturn, Corona Extra, like many otherimported beers, continues to be sold at a higher/premium price. Will Corona sales regain momentum once economic growth returns – or do they face a longer-term challenge from changing attitudes (e.g., beer drinkers seeking new, novel flavors through craft beers)?



Competitive Profile

Corona Extra is the leading imported beer in the US and is ranked sixth when including domestic beers.Like other imports, Corona is priced at a premium to the other brand leaders (which are all domestic) and enjoyed an extraordinary average sales growth rate of 8% from 1998-2007, exceeding the industry’s average growth rate of less than one percent a year. Corona Light is the leading imported light beer in the US and grew 17% per year during the same period.

In the US industry, there are threegroups of beer producers: 1) traditional mass producers, 2) importers and 3) craft/specialty brewers. Traditional mass producers have been around since the 1930’s and sell the vast majority of beer in the US through the leading domestic brands. Anheuser-Busch InBev has 49% share with brands including: Budweiser, Busch, and Michelob. MillerCoors holds a 29% share with brands including Coors,Miller and Milwaukee. The two major importers are Crown Imports, with 5% share, which carries Corona, Modelo, and Pacifico (all brewed by Grupo Modelo), and Heineken USA, with 4% share, which sells Heineken, Dos Equis, Newcastle Brown, among others. Craft/specialty brewers are small-scale producers and recent market entries. They offer darker “craft-style” beers and ales, often called specialty...