#heineken products

[monte-charlo]

Not people saying those heineken star trophies are better than original designs from the track. Like sure the monza tentacle monster trophy is a little unorthodox but its still miles better than generic sponsorship piepiewasser trophy

[gentlemans-code20]

#ProductPick - NewAir Large Beverage Refrigerator Cooler

Add ambiance to any room in the home with our 224 Can Built-in Beverage Fridge—a stylish cooler outfitted with multicolor LED lights that illuminate your collection and a seamless stainless steel door frame that enhances your home décor.

[bbybearcubbs]

Things Overheard In Dorms - Skz Edition

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Jisung: "That's the fourth time this week you've brought up cannibalizing me. Should I be worried?"

Chan: "So needless to say, she peed on me"

Minho: "Wow, this Heineken has such a smooth finish!"

Jeongin: "Do you think I can fit an entire orange in my mouth?"

Hyunjin: "If I hear someone sing Hamilton in the shower again I'm joining them in their shower so I can drown them."

Seungmin: "Someone just gave me a free cake. Should I be worried?"

Felix: "How did they manage to get that in BOTH shower stalls?!?"

Chan: "How much caffeine is poisonous? I'm asking for myself, I'm actually worried."

Changbin: *Faintly, as though yelled from in a room down the hall* "Can you come hand me my Swiss Rolls? My head spins if I sit up."

Seungmin: "Well you see, Marxism is actually-" *Anguished yelling from multiple people*

Minho: "Why is Felix sitting in a box in the hallway with a sweatervest draped over his head?" Chan: "Stress"

Jisung: "What's the difference between an undergraduate research assistant and a random nosy 19 year old? Less than you think!"

Hyunjin: "Let Bob Ross caress your happy little struggles away"

Jeongin: "He talks like the world is waiting with bated breathe to hear what he thinks about Fight Club."

Minho: *Screams in harmony with a vacuum*

Marxism is the social and economic theory developed by Karl Marx in the 19th century. Marxian economics describes the capitalist system of production as inherently unfair to the workers, who represent most of the population.

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Taglist [Open]; @rikislady @stayconnecteed @starlostastronaut @skzms @hanjibug

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[randomtheidiot]

What the Norse gods probably smell like.

NOTE: I AM NOT A NEOPAGAN. I’M JUST A NERD. PLEASE DO NOT TAKE MY DERANGED RAMBLINGS AS RELIGIOUS GOSPEL, I WILL ULTIMATELY USE ALL THAT POWER AND INFLUENCE FOR EVIL.

This is a comprehensive list of what I think all the Norse gods smell like. Do not ask me why I wrote this down, why I wanted to post this on the internet or why I even asked the question in the first place. Everything can be explained by mental illness and sleep deprivation.

If your favorite deity isn’t on here, it’s because they suck.

-Óðinn (Odin): A mix of beer, sausage and that old man sweater smell.

-Þórr (Thor): Alcohol, body odor and an inordinate amount of Worcestershire sauce. The smell is strong enough to knock small birds straight out of the air.

-Loki: Fireplace soot and the kind of mulling spices you’d use in apple cider. You’d think it’d smell good, but the sooty smell kind of ruins it. A bath would definitely help.

-Frigg: Some sort of strong perfume, along with cheap wine and potpourri. She just kinda does, I don’t know why.

-Freyja: She has that cat scent. I don’t know if any of you know what I’m talking about, but she smells like a cat.

-Freyr: Apple scented shampoo. This is a conscious choice on his part.

-Baldr: Flowers. Real ones, too. Not the fake perfume shit. I suppose now he smells like a corpse that was burnt on a pyre, but when he was alive, he smelled like flowers.

-Höðr: Wintergreen mouthwash… for some reason.

-Nanna: Fruit preserves like jam and shit.

-Hœnir: He smells like a dad. Whatever you think a dad smells like is what Hœnir smells like. He smells fatherly.

-Skaði: Pine sap. She is covered in pine sap and if you look closely, she probably has some pine needles glued to her hair.

-Sif: The bread aisle in a grocery store.

-Iðunn: Apple based food products. She’s not exactly running low on apples.

-Sigyn: Olive Garden. She smells like the inside of an Olive Garden. Do not question me on this.

-Mímir: Very strong incense to cover up the corpse smell. It is nearly impossible to breathe around him.

-Týr: Go up to a man. Any man, doesn’t have to be a specific kind of man. Now smell him. That is it. Týr smells like a man.

-Heimdallr: Piss and vinegar from all the hate in his soul. There’s a million goddamn signs of Ragnarök and his dad still has him keeping watch like he’s a fucking security robot. That horn ain’t gonna do shit and he knows it.

-Njördr: He smells bad, but it’s not really clear what’s on him. It could be anything from tacky deodorant to motor oil and judging by his general weirdness, I’m not sure I wanna find out.

-Ægir: Alcohol. He practically wears Heineken as a cologne and it smells fucking terrible. Add on his natural ocean smell and it’s just fucking unpleasant to be around him.

-Rán: Fish, and not for the reason you might be thinking!

-Jörð: She’s a fucking earth goddess. Stick your face in the dirt. That’s what she smells like. Don’t ask me this again. Fuck you.

-Laufey: Tree. :)

-Njörðr’s unnamed sister-wife: The nursing home.

-Lofn: Shitty rose flavored Turkish delight that I got from one of those generic ass Marshall’s stores that white moms really seem to like. It was only slightly better than the lemon one.

-Forseti: That incense they use at Catholic Churches. I don’t know why, he just does.

-Hermóðr: Sweat and various other body fluids, as well as traces of whatever menial task Óðinn last assigned to him.

-Ullr: Tobacco. On his breath. Staining his beard. It’s horrible.

-Sól: Orange juice and sunscreen.

-Máni: Grape scented for unclear reasons. Probably nefarious ones.

-Bragi: Bragi smells like a disappointment of a child. His siblings are Þórr, Baldr and Týr and he’s just there with his stupid poetry and shit. He smells like those stupid Yankee Candle candles that never actually smell like what’s on the label. When I see “tropical seabreeze” on a label, I don’t expect it to smell like dishwashing liquid, but it always does. Bragi is tropical seabreeze candles. Bragi is dishwashing liquid.

-Hel: BAD. BAD SMELL. THAT IS NOT A GOOD SMELL.

-Angrboða: Plums.

[georgegraphys]

Brands that user georgegraphys think would fit George (as team sponsor/individual BA jobs)

1. Samsung (Technology & Electronics)

I know George used Iphones but imo, Samsung would be a good fit to sponsor the team because a) their brand image definitely fit Mercedes & George a lot (bold, broad innovations, and of course, their main colours (Black, White, Blue) fits Mercedes official colour a lot or it doesn't clash against other colours, colour synchro is important too) + their CSR aligns a lot with Mercedes' as they focus a lot on energy efficient, sustainable, and renewable products

2. Cartier (Jewelry)

It is unlikely for Cartier to be a team sponsor, so i'd like to think of George doing a campaign for their collections. Was actually thorn between BVLGARI and Cartier (but then I thought BVLGARI would fit Lewis better, giving me maximalism vibes) whereas George imo, will look better with the simplicity that Cartier jewelry offers (i could honestly imagine Carmen & George doing this join Cartier campaign)

3. Brunello Cucinelli (Fashion)

This is highly unlikely as Mercedes and George are tied with Tommy Hilfiger (even if it happens, it would be an individual collab w/ George) but a collaboration with Brunello Cucinelli would blow people's minds. George actually wore plenty of Brunello Cucinelli clothes (one of them being the sweater he wore in Austria this year). Brunello Cucinelli emits the old money modest elegance, minimalism, and classic that would fit George a lot (as it seems like his fashion style is the opposite of Lewis' maximalism and stand out-ish)

plus, George is friends with THE Brunello Cucinelli's daughter alr on instagram 😜

4. L'Oreal (Cosmetics & Personal Care)

I might sound like i'm drunk but HAVE YOU SEEN GEORGE'S HAIR?! L'Oreal can easily make him their model if they become a team sponsor or collaborate with him on a personal campaign. It's a perfect objective for L'Oreal. That's if we're talking about the haircare part, but the skincare? George could too. His skin is *chef's kiss* perfect for a L'Oreal CF shoot on a beach

5. Hennessy (Alcoholic Beverages)

Haven't looked up the F1 policy on this since they seem to be sponsored by Heineken and idk if another alcoholic beverages brand is allowed to sponsor a team. But hey... FUCK THE ENERGY DRINKS WE ROLL WITH THE ALCOHOLS. George's fancy commercial with Hennessy, while drinking a cognac? I'll take it. Plus points for Hennessy is that sophisticated beautiful product design they had (the bottle designs) and the logo 🥹🥹 (i'm a sucker for logos okay)

Other optional replacements:

Ritz Carlton/Marriott Bonvoy > Intercontinental Hotel Group

It's British and had the same vibes and elegance of an expensive hotel just like Marriott Group & Ritz Carlton (I prefer Ritz Carlton over all) but yeah could be switchable. We can still see George doing silly Marriot Bonvoy-like CF

IWC Schaffhausen > Tissot Watches

There won't be a really huge change between Schaffhausen to Tissot as both of them are similarly classic Mercedes vibes.

Police Eyewear > Michael Kors

I just prefer MK's design over Police even though Police ones that George wears are good. Plus point for MK is that they're more well known (opinionated statement)

Monster Energy > None (?)

I don't think an energy drink company sponsor is really needed in George's Mercedes.

Possibly other brand types that i'm interested in for Mercedes to partner with : Airlines (Lufthansa/Etihad Airways) or Luxury Goods manufacturer (Montblanc/Fortnum & Masons/Harrods)

Other than these brands : i personally think Van Cleef & Arpels, Guiness, Bottega Venetta, L'Occitane, and Salvatore Ferragamo to be a great contender in being a good brand for George. But if we're talking about British stereotypes, Lipton should sponsor him LMFAOOO

Conclusion is George doesn't lack brands that fits his image branding and personality. Haters should not worry about who'll sponsor Mercedes/George. There are lots of brands that fit George's Mercedes and George Russell himself, maybe you should broaden your brand knowledge 🤭😝☺️

[wenzhedong]

Abandoning an Established Brand is Hard

Key Takeaways

One of my key takeaways from the first 2 classes is that it is incredibly difficult for companies to abandon an established brand, even when the brand may no longer align with the company's strategic direction. Brands like Heineken and Black & Decker had become deeply ingrained in the minds of consumers, making it risky and costly to completely abandon them. But sometimes companies have to make this tough decisions. While it is really difficult to do what Black & Decker did, there might be alternative options.

Potential Measures for Abandoning Established Brands

Brand Repositioning

Companies can also consider repositioning the established brand to align with the new strategic direction, rather than completely abandoning it. This may involve modifying the brand's messaging, product offerings, or target audience.

Example: BlackBerry, once known for its iconic smartphones, faced declining market share as the smartphone industry evolved. The company decided to reposition its brand, focusing on enterprise-level security and software solutions rather than consumer-focused hardware.

Dual-Branding Strategy

In some cases, companies may choose to maintain both the established brand and the new brand, allowing them to cater to different customer segments or product lines.

Example: When Procter & Gamble acquired the Gillette brand, it maintained the Gillette brand alongside its existing personal care brands, such as Old Spice and Secret, allowing each brand to serve its specific target market.

Conclusion

Abandoning an established brand is a complex and challenging decision, but it may be necessary for companies to align their branding with their strategic objectives. By considering gradual transitions, brand repositioning, or dual-branding strategies, companies can navigate this process more effectively and minimize the risks associated with abandoning a well-known brand.

#mitsloanbranding2024b

[windynatriavi]

A Corona or a Heineken, Sir?

"Arrogance on the part of the meritorious is even more offensive to us than the arrogance of those without merit: for merit itself is offensive." 

This quote by Friedrich Nietzsche keeps ringing in my head as I think about Heineken. Heineken's vulnerability lies in its utmost strength: It is a legacy brand that, despite its undisputed quality and reputation, now seems too exclusive and arrogant for the upcoming generations. Many of which are worth mentioning come from Hispanic backgrounds living in the US. While that number is ~33.7% in the state of California, in most places, the Hispanic community is still a minority. Yet this community is increasing in numbers and economic importance in the beer market. In other words, Heineken's exclusive brand image is even more problematic as it is now likely to be perceived as 'haughty' by a sub-population that already feels like an outsider. It must connect to the young generation to protect it while keeping its products' aspirational image and sound quality. For example, efforts to bridge the divide by showing multiple generations enjoying a Heineken in the advertisements will appeal to the brand's relatability and legacy- making it seem aspirational instead of arrogant. We can also see how the luxury watch manufacturer Philippe Patek brands itself. 

While Heineken is forming its image as the arrogant and, at best, the out-of-reach or 'un-grounded' option, Corona is taking the opposite direction. To customers' minds, Corona is likely to be the 'unpretentious' option that turned out to be almost as desirable as Heineken. Its positioning of "What you see is what you get" signals a brand that understands people want to keep things simple without sacrificing quality. This image understandably appeals to younger generations. Its growing ad message showing a different 'latitude' also provides reassurance and comfort that while some may not be there 'yet,' they are on the 'journey of change.' 

The ads undoubtedly play an essential role, and it's particularly striking to see how strikingly different and communicative they are when you compare the ads. In the upper left image, the Corona bottle is lying down - almost like people are too drunk to get up after a fun night. Right below it, the Heineken bottle stands straight up, indicating that it wants to portray itself as a more 'serious' brand. The upper right-hand corner ad shows many Corona beers in a bucket, emphasizing that drinking Corona is a 'shared experience.' Right below it, though, the Heineken bottle stands alone amid a dark background - almost to say it might not be for everyone. Regardless of what Corona or Heineken claims it wants to say, the truth is that we know their truth from what their ads convey. 

[lhbranding]

Corona Beer Case Reflection

Prior to reading the case, I didn’t realize that Corona and Heineken had a big difference in their marketing or branding. To my untrained palette, I always thought of both as “light” cheap beers with little differentiation. One of the few associations I have with Corona is the lime that often accompanies it (similar to a blue moon and orange), and with Heineken, the iconic green bottle with the red star.

Consistent with the case, I do associate Corona with Mexico and long-ago college spring break trips to Mexico – i.e. relaxation. The brand seems to have consistently promised a “relaxed” or “fun” experience to its consumers throughout its history. Corona has capitalized on the “Mexico” association by ensuring that their image and operations in America are consistent with those in Mexico (barring price) – from the bottle shape to the logo to the advertisement film locations in Mexico. Corona has always been an approachable beer that builds customer loyalty face-to-face (showing that they’re humble and willing to put in the work to become the #1 beer out there). Exemplifying this culture, the Corona spokesmen in the case noted: “selling beer is 90% perspiration and 10% inspiration.” (As a tangent, I would be interested in understanding how customer sentiment towards Corona shifted during the COVID-19 pandemic and what Corona did to bolster its beer brand vs. the homonym virus.)

I was surprised to learn that Heineken previously was seen as unapproachable and more “proper” (i.e. the exclusivity you’d expect from a “premier” beer). It’s clear that the business has done a lot to change its brand perception as I feel that it is a cheap beer (perhaps also a product of the craft / imported beer market expanding). In the case, they alluded to the fact that Heineken began filming people having a good time in a bar to pivot its image which I think it has succeeded in doing.

At the end of day, as I think about what I associate with a beer – a refreshing beverage after a hard day of work or a long day of skiing – I want something that will relax me. Heineken’s proper “quality” doesn’t seem a good choice based on my motive for having a beer, so I think their marketing shift was prudent. However, I don’t think either brand has done a good job present day in differentiating themselves.

[rajitmbranding]

Corona Beer Case

The Scenario: Heineken's main vulnerabilities are its declining sales in the late 1980s and early 1990s, driven in part by the strengthening Dutch guilder vs. the US dollar. Heineken's attempts to change its advertising strategy through agencies like Lintas and Warwick were unsuccessful in reversing this trend. Additionally, the leadership at Heineken, even after executing various measures, was not able to turn around the company making it quite vulnerable. In contrast, Corona's "Fun, Sun and Beach" themed advertising, overseen by Modelo's Procermex subsidiary, helped propel it to the #2 imported beer in the US by 1996, cutting significantly into Heineken's lead. However, Corona still aims to be #1 in the category.

The Branding: In consumers' minds, Heineken appears to represent a more sophisticated, premium European import, whereas Corona embodies a fun, relaxed, unpretentious beach lifestyle. Corona's ritual of serving the beer with a lime appeals to younger drinkers. Its advertising, stressing the "fun" nature of the beer rather than the brand's prestige, differs markedly from Heineken's historically product-focused campaigns touting the beer's quality and number one status. These differing brand positions, shaped heavily by the companies' advertising campaigns, have allowed Corona to attract a new generation of import beer drinkers and seriously challenge Heineken's long-held leadership position in the U.S. import segment. However, one notable similarity is that both Corona and Heineken primarily (or exclusively for Modelo) imported from their home country and had storied histories. Each beer company held onto their heritage in their advertising campaigns, though that heritage was wildly different.

The Strategy: To protect its market position, Heineken could focus on more effective, regionally targeted marketing as suggested in the case by CEO Michael Foley, and strive for more consistency in its brand messaging. Additionally, Heineken would need to find a way to make its European-leaning messaging relate to the changing demographics in the USA. For instance, as noted in the case, the Hispanic population had grown tremendously by over 30% from 1990 to 1997, and its buying power grew nearly 65% during that same period. How did Heineken appeal to them? With an extensive budget of $15.1M, compared to Modelo’s $5.1M, it was a question of how to use the money compared to how much. For Corona to further increase its share, it should double-down on its brand promise of a fun, relaxed beach lifestyle experience but also eat away from Heineken’s customer base. It can do this through consistent, evocative advertising and experiential marketing initiatives that would help associate Corona with an aspirational lifestyle. Also, as discussed towards the end of the first class for B&D, Corona should be mindful of the brand life cycle challenges that come with success. As a brand grows and gains popularity, it risks losing some of its distinctive identity and badge value. To counter this, Corona could employ a brand discipline strategy, making small but impactful changes to keep the brand fresh and relevant while staying true to its core promise. Limited edition packaging, strategic partnerships, and targeted line extensions could help in this regard.

[lexibranding]

Corona - Class #2

In class, we learned about how branding strategy is the management of cognitive associations and about the need to consistently check in with customers as the brand is co-owned. I think this case illustrates differences in how effectively Corona and Heineken managed their cognitive associates and relationship with their customers. Corona is positioned as the underdog of the case, but it seems like they have a stronger brand presence than Heineken.

Modelo and the Corona product have been consistent over time. The product has always been brewed in Mexico and the majority voting rights remained in the hands of Mexican families even after AB acquired an economic interest. Similarly, when they decided to export Corona to the U.S., they decided to market it as a premium imported beer with the “Fun, Sun and Beach” image, eliciting associations of being on vacation, laid back, relaxing and letting loose. Their two distributors stuck with this image and Model reserved the right to approve advertising content, ensuring there was consistency. The collaboration between Modelo and their distributors also helped their strategic positioning in terms of pricing and added to consumer trust. Even today, over 30 years after the content of this case, the brand associations with Corona are still the same and positioned at a similar price as Heineken (~$27.99 / 24 bottles).

On the other hand, the case portrays Heineken as losing its way. Heineken wanted their associations to be primarily with product quality, which was portrayed in their campaigns like “Just being the best is enough.” However, they were not in touch with the consumer and assumed they were doing everything correctly. Additionally, there was tension between Heineken and the distributor and when sales started declining, the company we quick to ditch their marketing strategy. They tried multiple different leadership teams, marketing firms and campaigns. Their strategic process appears to be chaotic and it makes sense why they were losing market share.

According to Statista, now Modelo and Corona are the top two imported beers sold in the U.S., with Heineken now being third. https://www.statista.com/statistics/188728/top-imported-beer-brands-in-the-united-states/

[anandham24]

Corona VS Heineken in the 90s

As Foley, the president of Heineken USA in 1994, said, "Beer is all marketing", It is important to know who your customers are and create the right cognitive association map in their minds.

For Corona, their target was the younger generation who looking for something fun and exotic. We can see that from the previous marketing campaigns like "Fun, Sun, Beach", and "Vacation in a Bottle" signal that the company understood its target customers and did a great job at aligning the brand image. This theme is also enhanced by the long-neck clear bottle that is unique from the other producers.

On the other side, the Heineken brand was associated with premium, quality, and mystiqueness. The company had been using the strategy of "letting the product speak for itself", which aligned well with the image the company trying to paint in the minds of its customers. This cognitive association may work well with the older generation, but as time went by and young adult shifted their preference toward Corona as a choice of imported beer, Heineken has to be more active in its advertising strategy, something exciting that will capture the crowd.

[chenghui-lim]

Choose your beer wisely

Even though both Heineken and Corona are foreign beer brands to the US, their expansion strategy and advertising campaign reflect divergent values. Modelo, the parent of Corona, has built its brand around partnership with distributors and consistency in the customer experience. With customers, Modelo chose to absorb additional Federal Excise Tax to maintain price accessibility. It could have followed its competitors to increase prices, since drinkers of imported beer are more affluent. Instead, it considers its position as the preferred imported beer among Hispanics – a group that has lower buying power than others. It also shows willingness to reinforce its identity as a Mexican brand but with US characteristics. It kept its long-neck bottle design and brewing entirely in Mexico yet adopted a non-returnable bottle packaging – a consumption behavior more consistent with US consumers. However, Corona initial advertising tagline on “Fun, Beach, Sun” was insufficient in building a strong brand. The tagline had uneven relatability across US consumers located in beach-deprived locations. Very little in its advertising campaign became a moat when safety and health rumors circulated.

Heineken on the other hand adopted a relatively hostile market penetration strategy. It was less responsive to distributors, less friendly to customers. Instead of playing up its product qualities, Heineken put down its competitors as a “faddish phenomenon”. For example, Heineken described Corona as “a quirky little alternative beer in Texas and California”. Heineken messaging almost came across as “either you are with us or against us” and risks alienating customers of its competitor brands. It also put distributors in a difficult spot, especially if distributers were serving both Heineken and its competitors. With little goodwill built up among stakeholders, Heineken risks brand erosion in the event of a scandal.

#MITSloanBranding2024B #corona #heineken #brand

[brand1ngm1t]

Corona

What are Heineken’s vulnerabilities and how could they be protected?

Corona has a very specific youthful and fun customer persona. Conveniently for Corona, the buying power of a large target market was growing due to population growth of Hispanic segment. Heineken's product appealed to an older crowd, one that was shrinking in relativity to the broader consumption market. A shrinking market is a large vulnerability. To defend against it could be to diversify product lines that apply to additional segments or serve a segment with strong brand associations specific to the segment they already have success with.

What do the Heineken and Corona brands mean in the minds of consumers, and how do these meanings differ in the minds of consumers?

Corona is the vacation beer. The brand elicits images of being on the beach with their slogans, imagery and name. When enjoyed regularly it is an attempt to escape mundane life and taste aspirational relaxation. Even its origin nation of Mexico is close enough to be attainable but far enough to feel exotic.

Heineken's brand was centered around responsible adults who take international beer seriously. Instead of focusing on building strong associations for consumers, Heineken focused on facts and attributes. Their stiff brand was reflective of how the company conducted business - a big conglomerate who had authority and intimidation amongst its stakeholders and suppliers. This serves as an example of how closely intertwined operations and brand are.

How do the advertising campaigns contribute to these meanings?

Clever slogans like "Vacation in a Bottle," "Find Your Beach" and "Change Your Latitude" elicit a chuckle out of customers and align with the light hearted mindset the Corona product is meant to embody.

[ellenb93]

15.846 - Corona Beer

Beer is a commodity.  While niche, unique, craft beers exist, I would argue that in the mind of the average American consumer looking for a miscellaneous “beer”, while they might have a preference, many of those light beers are interchangeable in their mind.    

I agree with the Heineken team when they argued that people “don’t drink beer, they drink marketing”.   And Heineken and Corona have pursued very different branding and marketing strategies within the US market. 

Corona has a distinct brand.  Close your eyes and think about what Corona Extra (or Corona Light) recall.  Beaches, palm trees, warm weather.  Maybe served in a bucket in the sand or washing down a plate of delicious Mexican food. 

Corona’s entry strategy and subsequent marketing created and reinforce this perception.  By choosing neighborhoods to enter based on beer consumption and the existence of a Mexican grocery store, they entered primarily heavily Hispanic neighborhoods.  This generated a higher consumption of Corona by Hispanic Americans, reinforcing the perception of Corona as a “Mexican” beer (more so than a generic imported beer).  They then followed this up with marketing referring to Corona as “vacation in a bottle”.

While this is a strong brand (and a brand I enjoy – Corona is great), if their goal is to expand beyond that to become the leader in the premium imports beer market, they need to reach a wider audience than those specifically seeking out a beer that represents “fun, sun, beach”. 

The marketing of Heineken sought to emphasize that it was a “premium” beer, and higher price points served to emphasize this to the consumer (presuming consumers often use price as a proxy for quality).  This perception compared to Corona was helped along by various challenges Corona experienced – rumors of cancer causing chemicals or urine present in its beer.

Their strategy was marked by a certain arrogance – if they produce a good product and create a strong brand, that the little “upstart”, Corona, could never touch them within the premium import segment of the market.  This is a strategy of complacency. 

If Corona is to make inroads within Heineken’s core market, they need to create a better perception of their quality compared to Heineken and break out beyond their perception as a “vacation” beer or a beer focused only on the Mexican market.   

[dhruvbathla]

15.846 - Perspectives on Corona Brand Strategy and Growth

Corona's (the beer not the virus) roots go back to 1925 with the establishment of the Modelo group. The group focused on growing through acquisition - both in the manufacturing and distribution landscape. Their ambition was to be the #1 imported beer in every market they did business in. A goal they have come closer to acheiving, even in the largest beer market in the world, the US. Backed by their strong distribution and retailer relationships, despite owning most of them in every geography, they maintained a strong market leader position. Ensuring that they own the final approvals for any advertising/ brand communication and also supporting the financing of the advertising initiatives - they were able to keep their messaging consitent and focused - "Fun, Sun, beach". Through a strong channel strategy, they also maintained a dominant position as a premium beer option in all markets, apart from Mexico. They even prevented TAX increases from spilling over immediately to their customers and absorbed these price hikes, through margin contractions. This strategy, helped them recover from strong negative press against the Brand on multiple occasions. By maintaining these relationships, they were able to turn around sudden spikes from rumors about their quality, calories and other unbacked claims in Europe and international markets. Their channel and Brand strategy, set them up to compete with Heineken well in the late 90s. It is unclear (assuming we are not in the year 2024), if they will continue to grow through localized acquisitions or devise a new strategy to compete with Heineken at the National level in the US Market. However, as long as they continue to innovate on the product and marketing as they have in the past, their strong channel relationships, should help them scale and absorb any other macro economic shocks.

[brenda0ng]

Consistency is Key

“Beer is all marketing. People don’t drink beer, they drink marketing." (Michael Foley, Heineken USA Inc. CEO, from 1994-1999)

The Corona-Heineken rivalry is a case study on the importance of consistency in brand communications, especially when brand associations take a long time to build up.

Corona has always tried to conjure up “Fun, Sun, Beach” for its brand. This was built from its consumers experiences with the brand, usually on vacation in Mexico and enjoying the light beer in the sun and on the beach. When people grab a beer, it is usually in a setting where they want to kick back and relax, and be transported away to more relaxed times, so Corona’s brand fits with this consumer need - think about the conversations around the Corona as well, where consumers can start chatting about their fun times and wild experiences (there are bound to be a few) in Mexico, becoming the perfect social lubricant. Corona is also exported to other markets in its authentic Mexican form, so the consistent packaging draws the same emotional association with the relaxing Mexican holiday for the consumer. The added advantage for Corona was that its innovative brewing process eliminated the oxidative effect, more consistently preserving the taste of Corona to consumers as they remember on that sunny beach in Mexico. Advertising content and taglines (‘Change your latitude’ in 1994, ‘Find your beach’ in 2010s) and tie-ups with celebrities that embody the “party” like Jimmy Buffett in its early days to Snoop Dogg more recently, remain faithful to that initial branding vision, allowing the positive brand associations as a premium Mexican beer, to be cemented in consumers minds over time. From its advertising, product look, taste to price in global markets, Corona has executed high consistency in the way its beer is marketed, to guarantee that a strong positive cognitive association to the positive holiday is ingrained in consumers over time. They have also chosen a niche association that is difficult to replicate.

Contrast this to Heineken, where we have a Dutch pilsner in a green bottle. The oxidative effect can cause a sulphurous taste, which commonly leads to a “skunky beer” when left for too long. It is traditionally viewed as a premium beer, associated with quality, heritage and sophistication - but this also happens to be the same values that many foreign imported beer brands also focus on building - meaning that the association to quality can be easily replaced by many other competitor beers as well, those coming from heritage, European type brands, as with many brands under another competitor brewer, Anheuser-Busch. In the 1990s, the changing demographics in the US saw the population in Southern and Western US outpace that in the Northeast and Midwest, alongside the growth of the Hispanic population exceeding that of other ethnic groups. Heineken’s advertising strategy through the 1980s-90s focused on product quality, but this was not necessarily the desired value in the beer that they’re young consumers that they were trying to attract - the conversation revolving around the Heineken would be very different; you are less likely to hear younger consumers waxing poetic about the quality of the Dutch pilsner or the Van Gogh museum they visited in the Netherlands. Heineken also changed its packaging in the mid-90s in the US, and its “personality”, trying to introduce humour to the brand, but this ran the risk of deviating from the values that drew its core customers to it. This switch also requires Heineken to have to rebuild brand associations again.

Through consistency in brand communications, Corona has now overtaken Heineken as the 2nd leading imported beer brand in the US in 2022 (Source: Statista). The Top beer brand, Modelo Especial, is also owned by Grupo Modelo - also a reflection of their patient brand-building that tapped into the American love of sports with associations of a “fighting spirit”.