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Success Stories: Model Group, Corona Beer

1. Profile
Founded in 1925, Grupo Modelo is a leader in the production and distribution of beer in Mexico
Company. It has 42,000 employees working in its 8 breweries, the largest plant of them located in
Zacatecas. Corona beer has become a national icon and its production remains exclusive to
Mexico.1
A few years ago, Grupo Modelo decided to undertake a comprehensive transformation of its
business processes to meet the challenges of this industry. Mexican brewer seeks new
opportunities to grow and become more competitive, and as part of this plan builds a new plant in
Coahuila, the largest in Latin America.
2. Positioning strategy

The idea around which revolved all strategies positioning this company was to show a 100%
Mexican, with its roots in a warm and welcoming country.
Graphic and advertising campaigns show the image of Corona vacuum container and slice of
lemon in different scenarios. Corona Extra but mostly communicates an image of a smooth,
transparent and fellow beer consumer situation.
Since its inception, Grupo Modelo has been leveraged in marketing to position and increase sales
of your product sponsorships popular events in Mexico, made merchandising as calendars and
bottle openers. Sponsorships are still one of the strongest marketing activities of the company,
sponsor soccer teams and festivals.2

3. An International Brand

Among the 80's and 70's brand it made its expansion into international markets initiated by
the United States, pointing to regions with more Mexican immigrants such as Arizona,
California, New Mexico and Texas. To reach the rest of the US states the brand faced a hard and
long judicial process in Puerto Rico because there was a brewery with the same name Corona. In
1979 finally it obtained the rights to use the naming in the rest of the country in question.
In the 80's I take this momentum and get to other regions such as Europe and South America.

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www.gmodelo.mx
www.expansion.mx/negocios

Yesilvia Yllanes

For 1997, the beer became the most consumed beverage foreign US over such prominent brands
as Heineken Dutch.
It has 14 brands, including Corona Extra stands out, which is the best-selling Mexican beer in the
world in 50 markets. Serves 500,000 establishments like grocery stores, supermarkets, restaurants,
bars, among others, through 4,500 distribution routes throughout the country. 7 brands exported a
total of 180 countries including the United States, Hong Kong, Belgium, New Zealand, Australia,
Brazil, Germany, Japan, to name a few.
In recent years, Modelo has followed the overall strategy that considers the organization as a
system, it focuses on process improvement, their interaction and alignment with the strategic map
and all companies that comprise it are aligned with the main activity manufacture, distribution and
sale of beer and bottled water. 3

4. Alliance with AB InBev

In 2013, the partnership of Grupo Modelo announced it was officially part of AB InBev. Mexico
represents 9% of global volume and 10% of its sales, is the second most profitable market after
Brazil. Model has installed capacity of 61.5 million hectoliters of beer per year.
Anheuser-Busch InBev controls half the US market through brands such as Budweiser and
Michelob; in Europe, it has Stella Artois and Brazil, Brahma. United States and Europe are the
largest markets in the world model it is the sixth largest producer in the world. The attraction for
AB InBev is the domain of the Mexican market, which is the world's fourth most lucrative and
growing. In 2011, Model had sales of 91.203 billion pesos and earnings of 11.945 million.
AB InBev is used to being a dominant player in the markets in which it participates. In Brazil, it
has 70% stake in the US and 50%. Grupo Modelo has 60% in Mexico.4

Operate alone in a globalized world where economic borders no longer exist, it is not possible;
why strategic alliances become the preferred companies that break the mold and are mentally open
to change path.

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Youtube: National Geografic Cerveza Corona xito


Revista Panormico: Anlisis del Caso de la Cerveza Mexicana: La Adquisicin de Grupo Modelo por AB-INBEV

Yesilvia Yllanes