Emily Taus

EXECUTIVE SUMMARY: DOS EQUIS LAGER

CATEGORY INSIGHTS BEER/IMPORTS: The largest alcohol segment nationwide is beer, reporting for nearly 85% while generating over $91.6 billion annually in retail sales. The most popular beer segments are as followed; light, imports, domestic specialties and premium. KEY CATEGORY INSIGHTS INTERNAL/EXTERNAL FACTORS AFFECTING BEER SALES: The U.S. beer industry has encountered a number of challenging economic as well as powerful demographic and cultural trends that have hurt sales and will likely continue for years to come. Increasing taxes on imported beers US recession and inflation Social media contributing to increased sales COMPETITORS: MODELO ESPECIAL~ Average cost of 12- pack: $15.59 Number 3 imported beer in the US, selling more than 30MM cases annually. From 1999-2008, Modelo Especial compounded annual growth rate has achieved a 19.2% increase, which ranks second in the total US beer market. Currently, Modelo sticks to the traditional forms of advertising and has not ventured into many other channels. CORONA EXTRA~ Average cost of 12- pack: $15.49 Number 5 selling beer overall in the US, with more than a 29% share of the import market. Average growth rate in the US for the last 10 years has been 8.3% KEY COMPETITION LEARNING Modelos Discover the Especial Facebook page: Very active page with interaction with consumers. A majority of their content is written originally in Spanish, and then translated into English. They are keeping with their Hispanic roots well. Dos Equis top 3 areas: the Pacific (as is Coronas), E. North Central, and the S. Atlantic (similar to Corona). Corona, however has managed to be popular in the Mid Atlantic, and Dos Equis could easily use this knowledge to gain traction there.

DOS EQUIS BRAND UPDATE Dos Equis annual growth in November 2011 outpaced Heineken's core brand. Heineken Dos Equis Ambar 3.9% 18.1%

Dos Equis Especial 25.6% STRATEGIC THINKING AND INITIATIVES Threats: COMMODITY PRICES: Supply chain costs and its effects on beer prices influence consumer price increases RETAILERS AGGRESSIVE PRIVATE LABEL/CRAFT BEER MARKETING EFFORTS RECESSIONS SMALLER CRAFT BREWERS Opportunities: DEVELOPMENT OF WIDER AUDIENCE AND GEOGRAPHICAL DIVERSITY FUTURE PACKAGING: Lighter glass bottle. The reduction in bottle weight will reduce CO2 emissions KEY OBJECTIVES~ Contribute to an overall increase in Dos Equis market share. Drive traffic to Dos Equis various microsites to promote events and publicity initiatives. STRATEGIES~ Focus on media vehicles and promotional events with a high concentration of multicultural Males as a way to reach the broader multicultural market. Continue with non-traditional initiatives, events, and digital tools that allow our target market consumers to engage with the Dos Equis Brand.