To start, let’s discuss a little about the history of the Corona Company. Corona was first brewed in 1925 by Cerveceria Modelo, a company based in Mexico City. It wasn’t imported to the United States until 1979. (2011, N. E. Peabody) During my research, I have found that Corona Extra has become the number One imported beer in the United States, pushing Heineken to second place. Corona Extra has made itself synonymous with relaxation and having a good time on the beach.
If you have seen any of their advertisements you will see a man and a woman sitting on the beach, sometimes they show them on vacation and sometimes they have just finished a hard day at work and they are just relaxing at the bar, but the idea is that when you drink a Corona Extra the taste relaxes you and you feel that you are in Mexico relaxing on the beach. I think that the strategy that best describes the Corona Extra Company is the differentiation strategy. It seems that Corona is targeting consumers that do not mind paying the extra cost for a good quality product.
They have also branched out their original product Corona to try and capture more consumers. They have done this by introducing, Corona Extra, Corona light and Corona Lime. The idea is to make a product that gives the consumer the choice of what kind of Corona beer that they would like to drink and reaching a broader consumer market. On the website, Economy Watch, they discuss the 2008 condition of Mexico in comparison with the U. S. economy as follows, “As compared to US, per capita income of Mexico is one-fourth.
It has been found that income distribution in country is greatly disproportionate. Purchasing power parity of GDP has been estimated to be $1. 578 trillion in 2008. GDP official exchange rate was projected to be $1. 143 trillion in 2008. 2 percent was real growth rate of GDP to economy of Mexico. $14,400 was per capita (PPP) of GDP in fiscal 2008. ” (2008, Economy Watch) This shows that the economy in Mexico is not as strong as it is in the U. S. and that Mexico relies heavily on trade with other countries.
The article continues to state, “Main focus is given to export of goods. Major export items include goods, vegetables, silver, fruits, oil and oil products, coffee and cotton. Major export partners of Mexico, which determine Mexico economic conditions, are US, Canada and Germany. It also imports goods from US, China, Japan and South Korea. Major import items include car parts for assembly, metalworking machines, electrical equipment, repair parts for motor vehicles, steel mill products, agricultural machinery, aircraft and aircraft parts. (2008, Economy Watch) Corona Extra has used this strong export of goods to also export their product to other countries and this has paid off tremendously for the Corona Extra Beer Company. In a country known for its beautiful beaches and laid back lifestyle, Corona Extra has used this to their advantage. Since the U. S. is known for its fast pace and cut throat business tactics, Corona Extra shows you that the average fast paced American can slow down, sit back and relax in the same nice, relaxed atmosphere as Mexico. Conclusion