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.

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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

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/wordpress/w

p-content/uploads/2008/12/bigstockphoto_no_alcoholic_beverages_2210301.jpg

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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

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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

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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

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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?

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