Carlsberg also have the largest stable of brands in the country, and nationwide blanket distribution. Lastly, Corona has experience in dealing with Carlsberg, with whom it has distribution agreements Russia, Central Asia, Turkey and a number of other countries around the world.
Corona faces intense competition from InBev (now a-B InBev after its merger with Anheuser-Busch). InBev has a different model for international expansion, comprised of purchasing breweries all over the world. This secures the company local production and distribution. It has the potential to shut Corona out of its distribution chains, reducing Corona's ability to compete in some markets. In addition, two of a-B InBev's global brands -- Budweiser and Stella Artois -- compete directly with Corona is most markets as imported superpremium beers.
There are three tactics that Modelo can employ in order to compete against a-B InBev. The first is to shore up its distribution channels. If one of the major risks is that it might lose these channels to a rival, Modelo needs to tie up long-term contracts with other international brewing companies that also have a vested interest in warding off a-B InBev.
The second tactic that Modelo should employ is that the company should focus on its own advertising campaigns. Corona is a strong brand in its own right, and Modelo has built significant expertise in brand-building over the past 25 years of international operation. The company needs to leverage that strength in order to out-advertise its rivals. Other firms will compete, but Corona has demonstrated that its campaigns resonate with consumers all over the world. It should not change what it does now as that would put its future success at risk.
The third tactic Modelo should employ is to build the strength of its other brands. a-B InBev has two global powerhouse brands and multiple complementary brands as well, both local and international. They do this to leverage economies...
Corona Modelo needs to chart a course for the company's future. The longstanding objective is to move Modelo into the top five of brewers in the world. As of 2005, Modelo remained outside of the top six. The company has 52 of the domestic market and is the best-selling imported beer in the United States, 50% ahead of next-best seller Heineken. The most significant underlying problem with respect to global market
However, there are also smaller importers for specialty brews such as Paulaner operating in Malaysia as well. While a smaller company will have more limited distribution, it will distribute specifically to the same types of establishments favored by Corona's target market, and German brews are generally not competing directly with Corona. AB InBev owns 50% of Modelo at this point. There is the possibility that the company may decide to
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