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Executive Summary
This report provides an analysis of Corona approach to segmenting, targeting and positioning
their customers through the understanding of consumer behaviour. By exploring the
hard-working Australian, the party orientated socialite, and the adventurous Australian hybrid
segments, we determine reasoning and effectiveness of specific marketing attributes that attract
these consumers. For the hard-working Australian, the AIO model and VALS survey depicts that
the Corona consumers have active lifestyles and seek self-expression through peers. For the
party orientated socialite, association with events such as SunSets music festival connects the
brand with partying individuals. For the adventurous Australian, its targeted to the positive and
ambitious 18-35-year-old with the use of imagery of relaxation and holidays in their social media
marketing strategies. Corona's positioning strategy is crucial in strengthening competitive
advantage and associating product attributes in consumer's minds. The elaboration likelihood
approach is applied in Corona's marketing campaigns making use of tropical and coastal
imagery linked with low involvement purchase attitudes. Compared to the other beer producing
competitors, Corona holds distinct brand loyalty and perceptions of self-identity with consumers.
Innovative usage of social media helps influence brand association with sporting and holiday
imagery, affecting the consumer’s decision making during the pre-purchase phase of consumer
evaluation. Corona utilises print advertisement for consumers seeking satisfaction to personal
needs of socialisation, associated with Maslow’s hierarchy of needs. The Country of Origin
effect explains the relationship between perceived quality of a product based on the country it
originates from. There is a positive attitude towards Mexican brewed beers, which achieves high
brand equity for Corona. Corona has two different designs of the product which embraces
association and brand recognition. The gold links with western culture of superiority and
happiness, whereas the blue and yellow design produces relaxing imagery of beaches. Corona
also plans the pricing of the product to be slightly higher than its competitors, forming the
mentality of “You get what you paid for.
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Table Of Contents
Executive Summary 2
Table Of Contents 3
Introduction 3
Segmentation Analysis 4
Segment 1 Hard Working Australian - Vincent 4
Segment 2 Party Orientated Socialite (Jack Burton) 9
Segment 3 Adventurous Australian- Tess 10
Positioning Analysis 16
Social Media Campaign 18
Print Media Campaign 19
Country of Origin Effect 20
Product Attributes 21
Packaging 21
Price 22
Conclusion 23
Reference List 24
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Introduction
Corona Extra was first introduced into the market in 1925, since its launch it has emerged to
become a Mexican icon. Corona is a pale lager with traditional Hispanic flavors produced by
Cerveceria Modelo. It is a beer recognised and sold around the world and currently rated among
the top selling beers internationally. Corona embodies a relaxed, carefree persona situated
around fun, sports, music and the beach. The brand focuses on the overall experience
consumers have when interacting with the brand. Corona’s brand puts a high emphasis on the
friendships and memories that are made when consumers drink Corona (Bhasin,2018).
The purpose of this report is to identity prominent market segments for Corona and analyse the
relationship between these segments and Corona’s marketing communications. After the
analysis of these particular consumer segments, the report will outline Corona’s positioning
Market segmentation is the process a company undergoes when it divides the market into
subsets of consumers (Schiffman, O’Cass, Paladino, & Carlson, 2014). These subsets have
multiple characteristics in common including consumer needs, interests, and similarities. Based
on Corona’s current marketing communications, the following segments have been chosen: the
Hard-working Australian, Party Orientated Socialite, and the the Adventure seeking Australian.
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Segmentation Analysis
The Hard-Working consumer profile Corona targets utilizes a combination of multiple segment
bases to communicate various marketing messages to those with specific homogeneous needs
and desires. With the application of AIO and VALS consumer behavior models, we determine
this consumer base tends to be ambitious, self-expressive, and enjoys social communities.
Analyzing these consumer behavior theories help us understand the decision making in
AIO Model
The AIO model refers to the measure of activities, interests, and opinion variables that the
specific group of people conduct in their daily lives. (Vyncke, 2002). Separating psychographic
patterns into typographies, marketers can analyses how consumers view their individual
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Figure 1.1 (Corona Australia)
Activities
The activities of consumers refer to the series of manifest actions relating to leisure, work and
reverie (Reynolds, F. D., & Darden, W. R. 1972). Hard-Working Australians often seek out the
thrill of sporting events and forming relationships in relaxed social communities. Working on
their active selves and relaxing with friends, Corona utilizes various product placements and
online advertisements to reach the evoked sets of this segment. They idolize the concept of
adrenaline rushes from challenging sports. When taking breaks from sports utilizing large
volumes of energy, these consumers unwind by consuming alcoholic drinks and a gathering of
friends as part of Australia’s drinking culture. The alcohol consumption market includes 78% of
the Australian population, with 44% drinking at least once per week (NADK, 2018). Beer
specifically in Australia held 39.9% of the consumed volume of alcohol in 2015-16 (Australian
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Bureau of Statistics, 2016) Gathering and interacting with friends and family using social media
as a platform, these consumers finds pleasure in connecting with people. Figure 1.1 displays
logo to spread brand awareness with social media groups and the surfing community.
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Interests
The association of excitement towards an object, event or topic that accompanies both special
social activities are the core interest for hard working Australians. Corona captured the
consumer’s interest in latest and trends and hot topics using up-to-date blog entries through
their social platforms. With the use of aspirational reference groups, Corona captivates the
interests by displaying successful and popular celebrities, motivating consumers to view their
ideal selves. These consumers have the incentive to affiliate and resemble idols of the
aspiration group (Englis, B. G., & Solomon, M. R. 1995). In Figure 1.2, Corona displays Laura
Wells in promoting their collaboration with Parley in their #100islandsprotected campaign. Laura
is a presenter, model and environmental enthusiast, whereby associating her with Corona will
bring brand awareness and give a healthy brand image to their fanbase.
Opinions
Individualism and caring for the wellbeing of others, hard-working Australians are perceptive,
cherishing their community and world around them. One of the most relevant issue in the
production industry includes pollution and harm towards the environment. Corona promotes this
social media trends and the World Surfing League tour to reduce the damages of marine plastic
pollution. This not only aids the environment but has benefits to the firm; environmentally
sustainable marketing has increased profitability and market shares, improved employee
commitment towards the firm, and an overall increase in customer satisfaction. (Moser, 2015)
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Figure 1.3 (Corona Australia)
VALS
The Values and Lifestyle Survey (VAL) is a proprietary psychometric practice, a value
measuring approach for nationwide typologies. (Strategic Business Insights 2018). VALS
measures on a scale the certain interests, opinions and personality traits in a consumer’s day to
day behavior of their primary lifestyle functions. The combination of primary motivations and
tend to fit into the Experiencers group, who portrays many forms of individual self-expression
and bring together communities with high social skills. They are the risk-takers interested in
active, unique and social events such as sports, fashion and trends against the mainstream.
High visual stimuli are required to reach these consumers. Experiencers represent 21% of the
young population and due to their high level of socializations also have a strong influence on
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their friend groups. Figure 1.3 depicts how Corona utilize enhanced levels of visual stimuli with
brash bright colours, composition of the fireplace and reflection of water to stimulate social and
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Segment 2 Party Orientated Socialite
At the core of majority of assumptions surrounding Australia and its overall symbolism, bustling
coastal atmosphere, relaxed beach settings and vibrant communities evokes many companies
such as Corona to initiate many of their marketing campaigns representative of this. Instilling
such core attributes about a product is crucial in developing the perception many consumers
may have about A particular product and the target demographic it represents as consumers
generally rely on brand names as part of the representation of information (Yalcinkaya &
Aktekin, 2015). Through its use of hybrid segmentation; Corona has made itself applicable to a
larger target demographic and focused this particular marketing campaign segment following on
from its already predisposed age demographic, consumer locations and particular lifestyle
attributes.
Its consistent message portrayed through its ethos of fun, friends, relaxation, beaches and
social connection has made it possible to develop its approach to implementing the ‘Corona
SunSets’ music festival through a worldwide consumer marketing strategy (Millington, 2015). Its
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throughout all its marketing campaign’s remains constant with all music festival locations having
some form of connection to oceanic features such as Australia previously mentioned earlier. It’s
campaign slogan ‘At Sunset We Rise’ alongside its strong brand association with beaches and
unique signature lime point of difference, Corona has been able to enhance consumer loyalty in
many of the regions that it has played host to with these festivals all year round (Marketing,
2018).
The targeted age demographic that Corona that has been distinguished through its marketing
years old both male and female where personal interests place a heavier influence on social
aspects in their lives. The artists performing at these festivals are also focused at this particular
demographic with many of act performing in Australia being linked to independent artists
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Segment 3 Adventurous Australian
Corona targets the Adventurous Australian as an important segment in their beer market. This
segment’s target demographics include Australian males, and females who’s age ranges from
18-35 years old, with a steady career who earn an average income. For the sake of this analysis
2017). The target market of this segment is also single or married without children. Corona’s
target psychographic consumers are free spirited people who are ambitious and intuitive. These
people embody a lively and down to earth personality, who enjoy the outdoors and all the
opportunities mother earth has to offer. Corona understands that this target segment is a group
of positive people who are addicted to their free and adventurous lifestyle, which is why the
brand attracts them through their use of marketing campaigns and communications. A specific
example of Corona’s marketing towards this segment is shown below through the use of global
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Figure 1.2: (Corona,2014).
Corona stated in 2014 under the “About” section of its website post that “Corona is more than
just a beer, it represents a philosophy of living, it is about connections between people and
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Australian market segment, Corona has become heavily involved social media and marketing
campaigns. For a brand that was once known for its reputation as an ocean vacation in a bottle
(Schultz, 2011), Corona has successfully changed the viewer perception of its brand by
focusing on the consumer's state of mind. Corona achieves this by portraying its beer as a
vessel of transport, taking the consumers mind away from its current physical place or situation
into a more relaxing, ideal state. This allows Corona to create a psychological connection in its
Corona as a brand is able to reach a high level of its target market by utilizing a wide range of
communication channels including digital, print, and social media. This marketing strategy is
(Adamson,2009).
Corona’s use of interactive media has become a huge success with the launch of their
interactive website that is linked to Corona’s Facebook, Instagram, and Twitter. The linking of
these social media sites to Corona’s website allows viewers to see all aspects of Corona’s
marketing campaigns though multiple vessels. Their website and social media accounts give
viewers access to live advertisements, videos, blog posts, as well as interviews with famous
athletes as well as everyday Corona enthusiasts. Corona’s media campaigns cover sporting
events around the world to target the “Adventurous Australian” segment. An example of this is
shown below when Corona coved the 2017 Quicksilver Pro Warm Ups in Queensland which
features famous surf champions Matt Wilkinson and Joel Parkinson, see figure 1.4.
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Corona focuses its marketing on traveling and exploring because it listens to its consumers and
realizes their need for a sense of self fulfillment and self actualization. Through the use of
images of nature such as the beach and mountains that are found in multiple of Corona’s
advertisements, the brand is trying to represent the adventure its consumers are craving.
Corona knows its consumers are dreaming of surfing, camping, traveling, and many other
things, instead of teasing the consumer by soley showing their aspirations. Corona targets the
consumers emotional desires and the fulfillment achieving these tasks will bring them. Corona
suggests that their beer will give the consumer the same sense of freedom and satisfaction that
Corona embraces the Adventurous Australian market segment by inspiring them to continue
their passion for adventure though its Corona Journey’s collection. This collection is made up of
real stories that consumers can read and have their passion for travel and adventure ignited,
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Figure 1.5: (Corona,2018).
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Positioning Analysis
Brand Positioning has become one of the most crucial elements in the marketing strategy of
competitiveness which has a direct correlation to deliver perceived brand benefits for a
consumer (Kobuszewski Volles & Hoeltgebaum, 2016). Corona has been able to distinguish
itself apart from substitute products through its elaboration likelihood model approach Corona
has with such campaigns as mentioned previously ‘At sunset We Rise’ and ‘Find Your Beach’
proving to be very effective in a highly saturated market (Millington, 2015). It has been proven
the purchasing influences for consumers choosing Corona as a product over other substitutes
has been directly influenced by such simple tropical & coastal imagery used in each campaign.
CCG (2018) saw an emerging trend in a declining beer market; Corona has managed to
dominate overall market share in multiple nations including Australia with the general consensus
from consumers labelling it a ‘awful tasting beer’, however continues to grow in popularity and in
sales. Understanding Corona’s consumer groups low involvement purchase attributes has
proven vital in directing its market approach focusing on the delivery mode rather than the
In Australia, Corona has now become the highest purchased imported beer and increasing
sales each year in the domestic market (IBISWorld, 2018), which is a reflection on the overall
consumption within Australia. The distinction of brand loyalty and perceptions of self-identity
with consumers are the strongest points of difference that Corona have used to target their
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segment as consumer groups have generally stronger tendencies to purchase and remain loyal
to products similar to their perceived identity (Roy, Khandeparkar, & Motiani, 2016).
The spider graph below is a representation of the Australian beer market and the positioning
strategy that main competitors in the market are perceived as a point of difference.
Through the use of various cases of classical conditioning, it has been viewed the extent of
impact that multiple methods of endorsements have had on building favourable brand image
within their consumer segments. As stated in Till & Priluck (2000), the use of classical
conditioning with pleasurable imagery will overall have a positive desired effect on consumers
developing a stigma towards a brand or product. Corona has utilized many sub cultural
influences to match many of the target consumer groups that have influenced their particular
sub group in particular reference to surfers, beaches and music. Icons such as Kelly slater,
John Florence have been used previously throughout their campaigns and more recently a
partnership with ‘Parley For The Oceans’ using such ambassadors like Chris Hemsworth in
hopes to reduce plastic waste in our oceans gives consumers confidence in the brand extending
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Social Media Campaign
Corona’s innovative use of social media platforms such as Facebook, Instagram, Twitter, and
the Corona website contribute to their products tangibility in the pre-purchase phase of
consumer evaluation (Hill,2004). This platform helps build Corona’s brand image by associating
with the social media sites listed above. The brand uses social media platforms to offer
promotions such as photo competitions, trivia, and sweepstakes. This appeals to a wide variety
of consumers and influences them to actively get involved with the Corona brand and are more
Corona is able to appeal to the Adventurous Australians and the Hard -Working Australians by
continuously promoting surfing and snowboarding events on its social media platforms. Their
website features blogs about surfing, travel, music festivals, snow sports, vacations, adventures,
and a section dedicated to Mexican adventures. All of these blogs have stories and videos
documenting individuals journeys and adventures in full detail allowing the reader to second
handedly experience the stories listed above. Corona is able to build strong brand equity by
sponsoring sporting organisations including the World Surf League (World Surf League, 2016).
The organisations Corona sponsors often times advertise for Corona at discounted prices, and
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Print Media Campaign
Corona’s marketing team has effectively utilized Maslow’s hierarchy of needs to its advantage in
their print advertisements. Corona advertisements have a recurring theme where a group of
friends are in a social setting enjoying Coronas together. This theme applies to Maslow’s
hierarchy of needs because all consumers are seeking satisfaction to their personal needs, the
advertisements suggests consumers can fulfill their need for socialization by purchasing and
depict a group setting where people are happy and at ease, consumers build a brand
association between friendship and Corona. This brand association leads to increased Corona
consumption levels because of consumers socio cultural desire to feel accepted as a member of
Corona is brewed and bottled in Mexico, because it its an imported beer the Country of Origin
Effect is present in Corona’s brand marketing. The Country of Origin Effect is based on the
premise that consumers tend to have preferences when purchasing products that are
product's perceived quality based on the country is originates for many consumers, this
relationship has become an influential buying factor (Adina,2015). Corona has managed to
create a positive attitude towards Mexican brewed beers by enforcing quality control and
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The Corona brand has achieved a high level of brand equity for a Mexican brewing company by
becoming one of the most popular international beers. Corona exports its products to more than
120 different countries worldwide, and is ranked number 95 of the world's most valuable brands
according to Forbes Magazine (Forbes, 2007). Corona was able to achieve its brand equity and
happiness, vacations, and over all good times (Sarukhan,2018). Corona uses its media
platforms such as its print advertisements, social media pages, and television advertisements to
connect Mexico’s culture with the brand establishing an international positive brand image. An
example of this can be seen on every Corona bottle where the phrase ‘la cerveza mas fina’ is
printed. This phrase directly translates to ‘ The Finest Beer,” the linking between Corona’s
Mexican origin and its branding attributes has made Corona one of the world's most recognized
beer (Forbes,2007).
Product Attributes
Packaging
Corona has two different beer packaging to adhere to its diverse target markets. The packaging
establish a higher level of brand regcontion (LaMarco,2018). Corona offers a clear bottle that
highlights the Mexican beer’s golden color. The color gold is often associated in the western
culture with superiority and happiness, the clear bottles embrace this association and use it to
further establish Corona’s positive brand image. Corona bottles also have a blue and yellow
color scheme that subconsciously remind consumers of the beach, which is an important factor
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to Corona’s marketing and brand positioning (Miller,2005). Corona’s use of bright
complementary colors on the traditional clear bottle are both strategic and pleasing to the
consumers eye.
Corona also offers its beer in a sleek and easy to hold can for consumers who prefer a more
sturdy packaging alternative to the traditional glass bottle. For example Corona’s Adventurous
Australian market segmentation may prefer the aluminum cans when packing for a trip. The
cans also offer consumers to have Corona at beaches and other venues like music events the
Partying Socialite market segmentation might attend that prohibit glass bottles. Refer to figure
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Price
Price has a huge effect on consumers willingness to purchase a product. Corona’s target
market are consumers who earn a mid range income, and therefore are looking for a good
quality beer that is affordable. Consumers formulate their personal opinion on a products value
but comparing its monetary worth to the benefit they gain by obtaining the product. Due to
Corona’s high brand awareness and positive brand image the company is able to price its beer
slightly higher than its competition while maintaining competitive price rates. Consumers often
times have a “You get what you pay for,” mentality that forms habits influencing them to
consider purchasing a higher priced product like Corona beer instead of a much cheaper beer
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Conclusion
Based on the report above, we have came to the conclusion that Corona has established a
clear brand positioning strategy that targets the following market segmentations: The Hard
-Working Australian, The Party Oriented Socialite, and the Adventurous Australian. Corona has
targeted these marketing segmentations by selecting activities, interests, opinions and hobbies
that the desired market segmentation is interested in. By doing so Corona has created a strong
brand personality that is present in all aspects of their marketing campaigns. Corona aims to
reach its marketing segmentations by advertising and sponsoring at events the desired
demographic would be exposed to. Social media campaigns have become a powerful tool that
Corona uses to capture its audiences attention while providing an interactive media platform for
consumers to connect to the Corona brand. Through the use of multimedia marketing and
strategic brand positioning, Corona has created an environment where it can effectively sustain
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