Corona Modelo Has Grown From Assessment

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Carlsberg also have the largest stable of brands in the country, and nationwide blanket distribution. Lastly, Corona has experience in dealing with Carlsberg, with whom it has distribution agreements Russia, Central Asia, Turkey and a number of other countries around the world.

Corona faces intense competition from InBev (now a-B InBev after its merger with Anheuser-Busch). InBev has a different model for international expansion, comprised of purchasing breweries all over the world. This secures the company local production and distribution. It has the potential to shut Corona out of its distribution chains, reducing Corona's ability to compete in some markets. In addition, two of a-B InBev's global brands -- Budweiser and Stella Artois -- compete directly with Corona is most markets as imported superpremium beers.

There are three tactics that Modelo can employ in order to compete against a-B InBev. The first is to shore up its distribution channels. If one of the major risks is that it might lose these channels to a rival, Modelo needs to tie up long-term contracts with other international brewing companies that also have a vested interest in warding off a-B InBev.

The second tactic that Modelo should employ is that the company should focus on its own advertising campaigns. Corona is a strong brand in its own right, and Modelo has built significant expertise in brand-building over the past 25 years of international operation. The company needs to leverage that strength in order to out-advertise its rivals.

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Other firms will compete, but Corona has demonstrated that its campaigns resonate with consumers all over the world. It should not change what it does now as that would put its future success at risk.

The third tactic Modelo should employ is to build the strength of its other brands. a-B InBev has two global powerhouse brands and multiple complementary brands as well, both local and international. They do this to leverage economies of scale in distribution. Modelo needs to do this as well, by building some of their other brands -- Modelo, Negro Modelo or Pacifico -- into global brands capable of complementing Corona in overseas markets. Adding another brand would allow Modelo to position multiple brands directly against those of their main competitors. Modelo has the leverage to get its other brands into foreign countries, now it just needs to find the right advertising hook to build those brands and become a true global brewing giant.

Corona has a strong market position build on its branding capabilities, and has achieved worldwide distribution by leveraging their brand to secure distribution agreements in each country. They now face the prospect of an intensely competitive global market. However, but focusing on growth markets in Asia and Latin America, and continuing to leverage their brand strength to fend off competitive threats, Corona can continue to grow despite the obstacles.

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