Corona Extra- "Find your beach."

                       

 

 

Class: Global Marketing Communications Planning GM-606

Professor: Walter Mills

Date: March 22, 2013

Individual Project: Corona Extra

 

 

 

 

  

Executive Summary- The corporate objectives as indicated by Group Modelo are: to create the moment, travel the world, grow every day and to care for our planet. “To travel the world” in summary states the company’s growth in international markets is led by Corona Extra. To aid the growth in international markets the concept of the beach was modified to a state of mind regardless of a consumer’s physical place or daily situation. The updated tagline for the communication message is “find your beach.” The primary target audience: age 21- 35, males, college education and semi-professional career making $50k a year, in urban centers with 500, 000+. They identify with the lifestyle aspiration Corona represents. They are confident, fun people who don’t take life too seriously. Marketing mix: concerning the product, Corona has always been about connections, more than just a beer. It represents a philosophy of living in the moment that has been embraced around the world. Furthermore, the distinct Mexican beer brand qualities: florescent neon yellow color, a clear glass bottle and printed label. Place, this beer chose “to travel the world” thus it can be found in 150 counties in including North America, Latin America, Europe, Africa, Middle East, Asia & Oceania. Throughout these counties the price of Corona varies however, average global price is about $4.14 USD. In the U.S. Corona promotes, using mass media advertising, such as television spots and print but also uses other media like billboards, taxi tops, bus wraps and sponsorships. Overall Corona does have an integrated marketing communications future opportunities include public relations and sale force.

I have selected Corona Extra because it is an iconic Mexican beer brand with a distinctive approach to its communications. Additionally, I was inclined to this brand considering it has presence globally. Prior to the project I had knowledge of the brand when I would watch boxing matches Friday nights on some of the local Spanish channel like Univision or Telemundo. Surrounded by family and friends, shouting and booing as we enthusiastically watched jabs, hooks, combinations round after round, bell after bell always in anticipation of knockouts. On the sidelines Corona ads, on the gym floor Corona, Card girls Corona. Also, as I soon entered college and thus stated visiting night clubs, Corona was present in several occasions.

Content analysis- Primary target audience: affluent, age 21- 35, males, college education and semi-professional career $50k a year, in urban centers with 500, 000+. Secondary, would be the U.S. Hispanic population, men, 21-35, Southwest region, speak Spanish, high school education making less than $50k a year. (Young, 2009). Corona Extra associates with the image of fun and relaxation thus, consumers are seen as youthful and energetic who want to live in the moment and relax to enjoy life. Beer buying behavior among this audience is low involvement because the decision is not a commitment time like that of a new car. The factors motivating a purchase relate to past experiences conserving vacations on a beach, social events with friends or aspirations to advertising messages they have encountered. Athletes reference groups and friends encourage purchasing. The implication of purchasing a premium beer translates into a person that has premium taste as well. Concerning the information needs, Corona focuses on when communicating what and with whom beer should be used.  The unique positioning is factor that influences buyer behavior because they understand the relaxation state of mind as analogous with the Corona brand.

Business Context- “We modified the concept of the beach to transform the physical place into a state of mind. With this concept ads will show different opportunities to “find your beach” in daily life situations” (Grupo Modelo, 2012). Consumers now consider there are other places to relax, hence the tagline “find your beach.”

Competitor analysis- Budweiser- The great American Lager, recently introduced a new beer to the market in 2013. Budweiser is a premium beer, highlights quality ingredients, donated water to natural disaster victims. Concerning the Website, it feels interactive it has videos a clean look and is easy to navigate also they sponsor professional sports, music events etc. (Anheuser-Busch, 2013). Budweiser has a competitive advantage based on budget size and domestic appeal.  Corona has positioning, reputation as #1 import beer.

Brands positioning are distinct however, they compete based on sales, Budweiser with $466 million, Corona with $349 million (The Free Library, 2013).          

Internal context-The Group Modelo, values progress thought technology. Now they operate most modern brewery in the world (Grupo Modelo, 2012) Thought diversification of energy sources they strive to keep low carbon emissions, implement recycling, and participate in conservation of the environment. Social responsibility includes fostering educational values, and promoting responsible drinking, this is present in all of their communications.  

External Context-Corona currently is under new management in the U.S.  Recently, Belgium-based Anheuser-Busch (AB InBev) proposed acquisition of the Groupo Modelo. The Department of Justice filled an antitrust lawsuit against the acquisition because, InBev, would own more than 51% of beer market thus monopoly. To avoid this, Constellation Brands will handle Corona in the U.S. (Stagnito Media, 2013).  Ingredient branding comes via a lime wedge in Corona ads. Professor Younge states this habit is undertaken by tourist, Mexican residents don’t do that. Nonetheless, the lime is associated with the mentality of beaches, relaxation and fun positioning.  

Main communications needs/ Summary of context analysis- Corona has been targeting the  same group of audience in the U.S. for many years and the position Corona has taken since the being had resonated with them on an emotional level. But currently consumers are more aware and involved as to in the way they spend their precious time. Corona is not about to sit back and watch them transition to another beer brands. Rather Corona is adapting to changing times thus making a transition with its customers. Current customers don’t really care too much about their health, if they did they would like not be drinking beer and if they were then it would be “lite” beer therefore Corona is and represents full flavor, not skimping qualities. Competition beers to this consumer really do not fit their need or personality. Corona drinkers feel like they have worked hard at work or during the week so they deserve to treat themselves in some way or another. Because they work in an office setting, work is not a physical labor rather a mental challenge and fatigue, the best option to remedy this fatigue and treat themselves, Corona. Corona has positioned itself to offer the solution to these functional and emotional needs. Based on these simple needs, most of the communication strategy and executions needs to mirror their need in such a way that does not require them to think, thus something they can understand and appreciate, with simple details.

Marketing Communications Goals and Positioning (Corporate Objective)-The corporate objectives as indicated by the 2011 Group Modelo are: to create the moment, travel the world, to grow every day and to care for our planet, see appendix for summary (Grupo Modelo, 2012).

Communications Objectives- Relevant to a communications stand point is “to travel the world.” In summary, international presence in more countries is key to the company’s growth. To aid growth in international markets the concepts of the beach was modified and transformed to a state of mind regardless of a consumer’s physical place or daily situation. The updated tagline for communication is “find your beach.” Additionally,

“outstanding this year were the tour of country singer Kenny Chesney, and 12 ATP tournaments, which strengthens the bond of Corona with the sport of tennis, and increases its global presence.”

 

Based on the objectives the communication strategy would be increased distribution to different parts of the world which Corona is not currently in. Corona because it is the star brand which can lead the way for the company’s other 5 top export beers. Next, with sponsorships the objective is promotion of the brand with different target audiences interested in tennis and country music. Communications platforms that I have seen do support the objective, “to traveling the world.”

Segments, Targets and Positing-“Beer consumption is overwhelmingly male-dominated, men accounting for more than 80% of the volume consumed” (Apex, 2012) The target audience for beer and tennis are in line. The USOpen audience: 59% male, 87% attend college, 93% have high speed internet, 42% between ranges of 18-34 while on 36% are in, 34-49 (USTA, 2013).

As for the user profile I will agree with Young regarding user profile,

“21-34, male who don’t see themselves as part of the masses. They identify with the lifestyle Corona represents. They are confident, fun people who don’t take life too seriously. No approval as to the beer they drink. Mainstream beers don’t match the person they are. They’re open to change. They want a beer that reflects their personality. They appreciate Corona’s unique perspective on certain life situations and refuse to change who they are and what they stand for.”  (EFFIE® Awards, 2006)

 

As for the consumer decision making process I have considered the approach of seven stages: unawareness, awareness, knowledge, liking, preference, conviction, purchase. Corona mainly targets preference and or conviction.  Corona is marketing to multiple audience given it is an international brand, as stated in the corporate objectives “to travel the world”. Moreover, in addition to the primary user, the Hispanic communities are targeted given Mexican heritage of the brand. Concerning preference, as a stage of decision making, Corona does not compare itself to other brands rather it creates favorability by having a presence where most of their target audiences are such as music and boxing event, tennis tournaments. As for conviction or persuasion, the positioning of the brands encourages a change of attitudes in favor of relaxation, this encourages purchase, as taken from the Corona website, “There's something about drinking a Corona Extra that's different…” and from the Facebook “about us” section, “Anytime you’re enjoying Corona, on the beach or on our profile, we ask that you enjoy responsibly…”

Marketing Communications Strategy- Push and Pull in addition to both long term and short goals are strategies Corona uses.  The pull strategy, having the customer come to Corona, can be deemed a long term goal via mass media advertising like television and print. For a push strategy, Corona sponsoring contracts with sports and events I assume they have exclusive rights to sell their product at the event locations, in this way it is a direct brand to consumer experience in the short run. Advertising creates pull whereas a wide distribution satisfies push.  Overall, Corona uses pull more strongly. As for the 3 p’s of marketing communication: product, price and promotion. PRODUCT: the unique selling point that differentiates Corona from Budweiser are the cues associated with relaxation and fun. From the Corona website,

“From the beginning, Corona has been about connections. Because Corona is more than just a beer. It represents a philosophy of living in the moment that has been embraced around the world. We try not to complicate things. That's why we made Corona so easy to drink.

 

Furthermore, the distinct florescent neon yellow color, a clear glass bottle and printed label.

PRICE: According to Humuch.com. The average price is about $4.14 USD, the maximum price is found in Southern Sri Lanka with a price of $7.68 USD and the lowest price found in the California, USA with $1.20. (HuMuch,2013).
Overall, the Corona is priced at a premium price given it has sustained a number one import beer position to the U.S. (Statista,2013)
PROMOTION: Corona uses mass media advertising, such as television spots, print media billboards, taxi tops and bus wraps. In addition sponsorships of music tours and sporting event like boxing and tennis. Online, Corona promotes it brand with interactive ads and social networks like Facebook and Twitter but also has user generated content on YouTube.

Message and Creative- The messages and tone of the individual communications that I have seen have shown variability. Notably, Corona is transitioned from campaigns “miles away from ordinary” to the current, “find your beach” campaign. The beach is no longer exclusively used as a point of reference for cues with relaxation. “Advertising aim to strengthen the connection between the physical beach and the beach “state of mind,” it depicts beaches in unexpected places-- in a city bar, on an urban rooftop or on a snowy mountaintop.” (Marketing Daily, 2012) However, the communications messages have a distinctive tone, limited dialogue and simple easy going atmosphere that gives a perspective on life. This is not true for the secondary markets where Corona takes a more festive approach, showing people in clubs, one male protagonist with a the supporting case of people singing from a nearby stage. I find that the two approaches translate respectively throughout other communications tool like online, television, print.

Communications Mix-Corona does use integrated marketing, most notably with television, print, digital and out of home. Digital media include the official website and social media Facebook and Twitter. The website is overall very informative this moves the target audience from knowledge to preference. The web site can be very effective way of reaching the target but it not. The website does not have a link to Facebook or Twitter. Facebook, slightly more interactive people actually post, comment, share and ‘Like’ thus this provide a better measure of brand engagement. This like Twitter can move the consumers from knowledge to preference. Twitter should be the most up to date but it’s not.. Concerning television, 13 television spots have been created for the new campaign. Additionally, Corona is reaching consumers via online television provider Hulu. This is the most effect tool to moving customers thought all stages to purchase because it reaches them when they are involved in enjoying relaxation. Print included taxi cabs tops and billboards both one way communications, none the less, have the potential to aid in awareness to conviction. Out of home consist of sponsorships of music and sporting events which are comparable to the strengths of personal selling. Other ‘personal selling’ I see potential for “Corona girls” where they take over a club bar and serve clients beer, this seems to create buzz in Mexico. 

Resources: Human & Financial-Cramer-Krasselt, ad agency currently have the Corona Extra account. The ads produced do not explicitly associate C-K and Corona (Cramer-Krasselt, 2013 ). As for internal resources, Carlos Fernandez, Chairman of the Board and CEO of Grupo Modelo (Constellation Brands, Inc, 2012).Valuable partnerships also include Crown Imports and recently InBev Company.

Scheduling & Implementation- The media plan is appropriate to reaching the target audience. Digital is online 24/7 while television commercials and print I saw on C-K website. Outdoor will most likely be visible during the day time for billboards handing off the side of building walls. “May on taxi toppers, bus shelters and other outdoor displays in 10 key U.S. markets including New York City, Chicago, L.A., San Francisco and Washington, D.C.” (Marketing Daily, 2012). I agree with the scheduling and location, in May the is much warmer and with the location it makes sense because that where the largest target audience reside.  

Issues-Beer advocated reviews are not in favor of Corona, 2.27 in comparison to the rating of Budweiser, 2.32. Budweiser has a history of advertising in mass media channels like Super Bowls. The commercials in this event are of importance because they reach a massive amount of the people, live, for an extended period of time. This space is not cheap, but the benefits are enormous. This advertising can lead to larger separation between Corona and Budweiser simply by not having a presence this yearly event.  Possible responses to Budweiser are a contest, inviting consumer to make a Super Bowl ad. Likely, the most important advantage of this contest would be the association to the event, WOM and hype (beeradvocate.com, 2013).

Evaluation & Control-Call to action from communications was not clear as to where I should go to for more information on the product. The print ad that stands out as hinting to where I can get more information is, “Log off. Lime in. Find your Beach.” As for the responsiveness of Corona via Facebook and Twitter I asked on both, “Corona it’s the St Parties day , what do you suggest “Light” or “Extra”?” and no reply from them at all.

Feedback-For print advertising, it can track circulation numbers via an audit thus giving them an idea of how many people saw the ads. For outdoor media, sales are based on traffic and a suggested amount of public exposure an ad might get given its location in the city, so referring back to the sales numbers will used full to estimate how many people where reached. Television ads can be measured by looking at media rating for the specific program they rant their ads in. Hulu will provide specific numbers as to how many times as specific ad was played and during what program.

Conclusion and Summary-Overall the effectiveness of the communications strategy is great, however, I do feel that social media is lacking in terms of engagement. The positioning is clear with consistent message tone and color. The brand personality is never lost throughout any of the communications tools of print, television, digital or outdoor. The only recommendation would be an active presence in the night life via “Corona Girls.” However, on the other hand I would also recommend targeting women with similar characteristic as the current demographic. Currently, the ads seem very gender neutral but considering it’s the category of beer, the association it always that of men.     

 

Appendix 1– Group Model Mexico Corporate objectives Annual report 2011

To create the Moment

“The key goal was to continue offering the best service in the beer industry and the highest quality products. In 2011, that objective shaped into an increase in market share to record levels, and into a growth in domestic sales of 10.5%, to 48,521 million pesos.” (Page 6)

To travel the world

“Grupo Modelo’s international strategy has centered on growing in the foreign market and traveling the world with six export brands. This year we reached the goal of being present in more than 180 countries with our flagship brand, Corona Extra, which places us among the top companies in terms of the number of nations in which we are present,… the work carried out in the international market, in 2011 the export volume grew 6.8%.”

“For Corona Extra, for example, we modified the concept of the beach—which has distinguished the brand almost since it was first introduced in the US market in the late seventies—to transform the physical place into a state of mind. With this concept, we launched a new series of ads that show different opportunities to “find your beach” in daily life situations.”

“Among sponsorships, the most outstanding this year were the tour of country music singer

Kenny Chesney, through which 1.1 million Corona Extra consumers were reached, and

the 12 ATP tournaments, which strengthens the bond of Corona Extra with the sport of

tennis, and increases its global presence.” (page 12)

“Corona Extra was included for the second consecutive year in the Best Global Brands ranking published by Interbrand” (page 12)

To grow every day

“Reached the goal of building and operating the most modern brewery in the world: the Compañía Cervecera de Coahuila,… Coahuila is fundamentally focused on serving the export market. Because of its location, scale and state-of-the-art technology, the brewery will contribute to improving the efficiency and the average productivity.” (Page 20)

“Grupo Modelo promotes sustainable growth and production with low carbon emissions, as well as technological advances and the diversification of energy sources throughout the production process planning for a future source of wind power.” (page 20)

To care for the planet

·         sustainability component is Re-vive,

·         Fundación Grupo Modelo, which promotes different projects relating to the environment, education and society as a whole.

·         the Escuela Modelo program that caters to 13 thousand students in public schools and their families arena,

·         Fondo para la Paz working on developing indigenous rural communities in conditions of extreme poverty in collaboration with the to promote the collection of rain water and access to clean drinking water

 

Appendix-2

 

Facebook page

Howsociable

Twitter

Website

 

Social mention                       















Site Report Card: 6.8/10                                                

   

 

Corona print ad

Billboard                                           

Interactive

 

 

 

 

 

Citations

Anheuser-Busch. (2013). , budweiser. Retrieved from http://www.budweiser.com/en//_age_gate?redirect=/en/us/

Apex. (2012). U.s. beer industry beer demographics. Retrieved from http://www.beer-brewing.com/beer-brewing/US_beer_industry/beer_demographics.htm

Beer Advocate. com (2013). Budweiser. Retrieved from http://beeradvocate.com/beer/profile/29/65

Beer Advocate.com (2013). corona extra . Retrieved from http://beeradvocate.com/beer/profile/75/232

Constellation Brands, Inc. (2012). Corona extra named one of world’s top brands by interbrand. Retrieved from Marketing Daily. (2012,). Corona evolves 'find your beach'. Retrieved from http://www.mediapost.com/publications/article/171045/corona-evolves-find-your-beach.html

Cramer-Krasselt, C. (2013 ). Corona. Retrieved from http://www.c-k.com/

EFFIE® Awards. (2006). Corona extra: Miles away from ordinary. New York American Marketing Association,

Grupo Modelo. (2012). 2011 sustainability report online.. Retrieved from http://www.gmodelo.mx/modelo_economico_en.jsp

HuMuch. (2013). Global average price. Retrieved from http://www.humuch.com/prices/Corona-Beer-one-bottle/______/221

Marketing Daily. (2012,). Corona evolves 'find your beach'. Retrieved from http://www.mediapost.com/publications/article/171045/corona-evolves-find-your-beach.html

Stagnito Media. (2013, feb). A-b, constellation brands revise modelo acquisition agreement. Retrieved from http://www.csnews.com/top-story-malt_beverages a_b__constellation_brands_revise_modelo_acquisition_agreement-62820.html

Statista. (2013). Sales of the leading imported beer brands of the united states in 2011 (in million u.s. dollars). Retrieved from http://www.statista.com/statistics/188728/top-imported-beer-brands-in-the-united-states/

The Free Library. (2013). Top 25 beer vendors, year-to-date ending december 30, 2012: Sig data us food.. Retrieved from http://www.thefreelibrary.com/Top 25 beer

USTA. (2013). Demographics. Retrieved from http://www.usta.com/onlinesales/demog.html

Young, P. (2009). Product research corona extra. Marketing Research Methods X460.6,