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Janet, Rebecca, Amanda, and Brittany

Overview

Situation Analysis

Target Market Analysis

Corona’s New Direction

Communication and Marketing

Advertising and Media

Public Relations

Merchandising and Promotions

Evaluation and Control

Situation Analysis

Industry Background

There are many different brands/kinds of beer

– more each year

Other types of alcohol for Corona to compete with: flavored malt beverages, hard alcohol/liquor etc.

Grupo Modelo is the 5 th largest producer of beer by volume

Biggest Trend:

Craft and microbrewery beer

Dollar value continues to increase

People want to be adventurous with their beer drinking

Situation Analysis

Company Background

 Grupo Modelo 1925- owns Corona, Pacifico, and Modelo beers

 CoronaCorona Extra and Corona Light

Available in over 150 countries

Top selling import beer in U.S. (27.7% share)

Top selling beer- 6 th overall

Holds 63% of the Mexican beer market

 Problem: Beer Marketer-

Imports are overall lower 2010 (1.3%)

Grocery Sales also declined in 2010 (1%)

Situation Analysis

Competition

Heineken

Main Competition

2 nd largest imported beer

 New ad campaign coming

FEMSA

 Partner with Coke

Own distribution channel

Recent Heineken partner

Anheuser-Busch

45% of the market share

Top growing import in 2010 with Stella Artois

Microbreweries

 Sam Adams, Blue Moon

 Small but local threat

Target Market

Source of Business- Primary Market

Age: 21 to 35

Gender: Men

Income: Lower Middle to High

Education: College

Geography: Entire US, Urban centers of 500,000 or more

Lifestyle: Semi-Professional, Professional

Men represent over 80% of total US beer sales.

Closely associated with sporting events

Consumed in larger quantity by high earners

Low income earners tend to prefer the cheaper domestic beers

Target Market

Source of Business- Secondary Market

Age: 21 to 35

Gender: Men

Income: Low to Middle

Education: Some High School / GED

Geography: Southwestern US

Lifestyle: Blue Collar / Retail / Semi Professional

Language: Spanish spoken in the home

Number one beer in Spanish-speaking areas

Prefer greater consumption of beer over Caucasian market

Sales are strong in South West regions of U.S.

Target Market

Demographics and Psychographics

Both Primary and Secondary target markets:

Demographics: Ages 21-35, male, white, average income, high school

 Psychographics: People who love to relax

Enjoy life

Go with the flow

Watch sports

Like hanging out with friends

Vacations/Parties

Target Market

Their perceptions

 Corona’s Brand Personality

Easy to drink

Unmistakable color

One-of-a-kind taste

Use with a lime

One of the most recognizable bottles in the world

Corona is about connections- friends, family, fun

Represents a philosophy of “living in the moment”

A beer best associated with the beach

Corona’s New Direction

Communication & Marketing

Main Objective

 New Brand Positioning Statement:

The perfect mix of a premium and casual beer

Corona has recently changed their positioning from a “beach and relaxation” beer to a “nightlife” beer

More occasions to drink Corona

Communication & Marketing

Strategies

 Distribution Strategy

 Continue distributing all over the world- 4 th most sold beer in the world

 Focus on target locations of South Western U.S.

 Work with grocers and liquor stores for prime positioning

 Pricing Strategy

 Keep price low to represent the “casual” side of the brand

 Compare to competitors

 Goal

 Increase Corona import sales by

2%

Total beer market share by 5%

Budget Plan

Corona’s New Direction

Advertising and Media

Objectives

Move them off the beach

Executions that drive consumers to consider Corona for multiple occasions

Position the brand as the perfect mix of casual and premium

Cater advertising to a more major, urban market that reflect their lifestyles

Advertising and Media

Strategies

Include all types of situations and all types of consumers

Hint to the “beach/relaxation” image that Corona is

Portray Corona Extra and Corona Light differently

Develop ads that change their perceptions

Key Selling Idea: premium and casual- for all types of demographics

Goals: increase sales, change perception, try beer

Advertising and Media

Media Plan

Geographic coverage- U.S., heavy in South West region, coastal

Seasonal Coverage- holidays, summer, sports, Cinco de Mayo

Reach- 60% of our audience

 How to Reach our Target Market:

 Internet, television, print, and outdoor mediums are the best ways to reach the younger crowd that Corona is catering to

Advertising Tactics

Broadcast

Networkscommercials will air on popular network stations such as

ABC

Bravo

Comedy Central

ESPN

FOX/FOX Sports

VH1

Spot

 - Prime

 -Late Night

Cable

 - Spot Cable

Magazines

General Consumer

 -

-

-

-

-

US Weekly

People

Readers Digest

GQ

Rolling Stone

Self

Advertising Tactics

Specialty

 -

-

Beer Traveler

Beer Across America

Modern Brewery Age

Trade

-American Brewer

-Beverage World

Advertising Tactics

Outdoor

Billboards- popular cities and cities by the beach

Transit:

 Airport and Subway terminals heavy foot traffic

Train Stations- AmTrak in 46 states

Taxis- largely populated cities

 with nightlife

Blimps- flying over sporting events

Sports Arenas- boards, banners and posters (Chivas, NASCAR)

Advertising Tactics

Interactive

 Websites and Banners:

BeerAdvocate.com is a widely used website that does reviews of beer, everything from huge brands to local microbrews

Any sports team/league that Corona sponsors should have direct advertisement on their websites

Any TV networks, magazines/publications that Corona advertises with should have a link to the Corona website

Public Relations

Objectives and Strategies

 Main Objective: Continue to enforce Corona’s new brand personality and positioning statement to our target markets in a way advertising does not

 Strategies:

 Press releases

Sporting events

Social Media

Media Kits

Special Events

Public Relations Tactics

Publicity

 Press/Media kits

Date, locations

Corona’s involvement in certain events

Other charities/companies included

Prizes

Contact information

Available through cbrands.com

 Announcements

Publicize sponsorships

Web page dedicated to announcements

Keep official site up to date

Public Relations Tactics

Events

 Event Marketing

 Special events- both beach and high class

 Sponsorships- sporting events and poker tournaments

Pro Surf 2011 (APSPR)

The Farmer’s Classic (U.S. tennis Association/part of U.S. Open)

Find a Cure Text Donation Campaign

(The V Foundation)

Chivas USA (Major League Soccer)

Various music festivals

Public Relations Tactics

Corporate Communications

 Newsletter

Keep employees updated

Talk about new events that

Corona is apart of

 Local information- stories of Corona users

 Web site

 Keep website updated

Make it more entertaining- More colors, younger, nightlife look

Engage with consumers so they stay on the site for a longer period of time

Have consumers talk about “Corona moments” on site

Sell more Corona products on the site

Merchandising & Promotion

Objectives and Strategies

 Objectives

New, year- long promotional campaign

Promote travel & well-known nightlife destinations

Get people involved with the brand

Continue Corona’s new positioning statement

 StrategyOffer multiple buying incentives:

Prize Redemption Catalog

In-store promotions

Point of Purchase Displays

Merchandising Tactics

Brand Identity

 Logo

Logo to remain same to keep consistency since its worldwide

Represents the timeless quality Corona will always have

 Packaging

 Change with holidays like Cinco de Mayo to become collector’s items

 Special label for May represents

Corona’s Mexican heritage

Merchandising Tactics

Point of Purchase

Buying Incentives

Goal- Offer free merchandise/advertise contests or promotions

Displays would offer coupons for Corona merchandise

 Ex: free t-shirt with purchase of two Corona six-packs in July

In-store Promotions:

 Location of the Month Campaign

New poster each month to promote new travel destination that is well-known for their nightlife- U.S. Department of Tourism

Bottle Cap savings

 Catalog with different prizes, using Corona bottle caps as “currency”

Ex: 150 Corona bottle caps buys a pair of headphones, etc.

Evaluation and Control

Pretesting and Post testing

 Pre campaign

 Measure the target market’s attention

Use sources to choose mediums

Online surveys- social media sites

 Post Campaign

Use longitudinal techniques

These will help track changes in usage and perception

Evaluation and Control

Monitoring

 Measuring success through:

 Sales Tracking

Surveys and Questionnaires

Our advertising and PR creations- event participation, contest submissions, online banner click throughs, coupon usage

 Customer Feedback/Database Building:

 Use monitoring techniques

Offer incentives- such as a coupon to answer some questions

Official Corona Beer Facebook

Wrap-Up

 Goal- Change perception our target markets have of Corona

 HowUse a combination of Advertising, PR, Promo to showcase Corona’s new Brand Position

 Why- Increase Corona sales to continue their top ranking

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