The recession is really taking a toll on everyone — even beer drinkers.
Because of the belt tightening measures almost all American households are implementing, everything is being cut down, even beer. There is a growing trend of beer drinkers now choosing cheaper priced brews when they buy them in supermarkets and stores. And this is a trend that the premium beer manufacturers are not happy about.
So what can you do? Well, if you’re Grupo Modelo SAB, the largest brewery in Mexico, you have to revisit some of your strategies. The company’s exports of its beers, including its top selling Corona, has declined by 5.3 percent in the first half of this year.
Modelo hsa said that it will be focusing on marketing to entice consumers to buy its beer. The obvious strategy of cutting prices to increase sales is not being entertained by the company because it will face higher input costs. One of its strategies is to even revive a popular ad it had in the 90’s as a way of stretching its marketing budget.
I don’t know about this strategy. Will beer drinkers buy expensive beer if they see an ad that’s more than ten years old? You have to be really drunk to get sold on that.