Presented By:

1
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.

2
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

3
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

strategy for each.

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.

These target segments will be the focus of this report.

4
Segmentation Analysis

Segment 1 Hard- Working Australian

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

Corona’s marketing and advertising strategies.

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

lifestyles and depict a stimulus to spread awareness of the Corona brand.

5
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

6
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

Corona creating eye-catching advertisements by employing product placement of the brand

logo to spread brand awareness with social media groups and the surfing community.

Figure 1.2 (Corona Australia)

7
Interests

The association of excitement towards an object, event or topic that accompanies both special

and continuing attention to it (Vyncke,2002). Forms of self-expression through sporting and

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

environmentally green movement with their #100islandsprotected campaign, whereby promoting

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)

8
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

resources determine the position of a consumer in a marketplace. The Hard-Working Australian

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

9
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

recreational outlet of energy, vicariously experiencing active exploration and self-expression.

10
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

ability to draw linkage to its intended

audience ‘the partying socialite’ gains

massive attention to its intended target

demographic as a form of guerrilla marketing

strategy by providing free live entertainment

in nations such as Mexico, Australia, United

Kingdom, India, Dubai, China and many

other developed nations

(Coronssunsets.com, 2018). The geographical representation of white sandy beaches

11
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

campaign can be identified as younger generational millennials ranging from age of 18 to 25

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

discovered by radio such as Triple J.

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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

average income wages range from 40 thousand to 50 thousand a year individually(Johnson,

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

advertising and marketing campaigns (Figure 1.1, 1.2, and 1.3)

Figure 1.1: (Corona, 2017).

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Figure 1.2: (Corona,2014).

Figure 1.3: (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

self-expression” (Corona,2014). Due to Corona’s deep understanding of the Adventurous

14
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

consumer’s mind that relates back to a relaxing, laid-back beach atmosphere.

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

effective in increasing brand awareness, brand recognition, as well as global acceptance

(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.

Figure 1.4: (Corona, 2017).

15
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

the activities shown in their advertisements do.

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,

see figure 1.5 and 1.6 for reference.

16
Figure 1.5: (Corona,2018).

Figure 1.6: (Corona,2018).

17
Positioning Analysis
Brand Positioning has become one of the most crucial elements in the marketing strategy of

products in contemporary society in evolving consumer perception and overall strengthen

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

context of the message (Miniard, Dickson, & Lord, 1988).

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

success of implementation of their marketing plan in comparison to a declining rate in beer

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

18
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.

Figure 1.7 : Based off assumptions made by IBISWorld (2018)

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

the value of their purchase decisions (Corona, 2018).

19
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

likely to retain the brands associations as shown in figure 1.8 (Keller,2008).

Figure 1.8: (Corona,2016)

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

even free advertisement due to Corona’s financial support (Fusfeld,2011).

20
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

consuming Corona products (Thompson,2018). The brand emphasis of friendship and

socialisation targets a consumer's social needs, because Corona advertisements frequently

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

a social group (Strunkina, 2016).

Country of Origin Effect

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

manufactured in specific foreign countries. There is a significant relationship between a

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

reinforcing positive brand images.

21
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

positive brand image by utilizing Mexico’s perceived international image of friendship,

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

of a product is crucial in attracting and sustaining the attention of potential consumers

(LaMarco,2018). It is vital to a brand to have a distinct and differentiated product packaging to

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

22
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

1.9 for Corona packaging.

Figure 1.9 : (Corona, 2018).

23
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

from a competing brand (Hansen,2005).

24
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

marketing to its desired demographics.

25
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