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CORONA BEER (MODELO)
FOREIGN MARKET ENTRY AND DIVERSIFICATION
Assignment #3
BUS 599 CORONA BEER (MODELO)
Indentify and discuss the trends in global beer markets

The consumption of beer began in the 14th century. Most breweries were local due to the tastes of certain geographical locations. In the 1990’s a tread began to form of companies acquiring smaller breweries to have a larger span of sales. This was due to the high costs of operations but having an extended stream or constant cash available for maintenance the structure of this industry supported concentration in this area.
Beer consumption in developed markets continues to suffer from high unemployment, high fuel prices and constrained consumer spending. In the USA, where unemployment is particularly sever among key beer drinkers, beer volumes have fallen slightly although accompanied by consumer uptrading between industry price segments.

Beer growth trends by volume%
Forecast five-year compound annual growth rate (CAGR) by region – 2011 to 2015

Discuss how Modelo’s international expansion was made possible through strategic partnerships with experienced distributors in local markets.

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Grupo Modelo first introduced Corona in Chicago through Barton Beers Ltd. Barton was one of the largest beer importers in the 25 western states and was experienced in the marketing and sales of imported beers. The second distributor that was chosen was Gambrinus Inc. Modelo gave the distributors carte blanche in the distribution, pricing strategy, transportation, and advertising campaigns but they did not have control over the production of the beer which was made in Mexico. This allowed some competitiveness between distributors which allowed Modelo to have strong relationships between importers.

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