Middle America

February 7, 2008

Since I assume (never assume Greta – ass u me), that many of the readers at Louisiana are part of “Middle America”, I thought you would all enjoy this video. According to our wonderful Democratic candidates (Obama is in New Orleans right now), “Middle America” is in trouble. We say we have so many poor, but dang – everyone has a cell phone these days…is that poor? Well Drew Carey expressed my personal opinions so well in a great video (safe for work).
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*tiara tip to She who Will be Obeyed and as always – come visit me on my lonely personal blog – you won’t be sorry – don’t be a stranger!

Corona losing its golden glow; With rivals multiplying, No. 1 import sees first sales decline in 16 years.(News)

Advertising Age March 24, 2008 | Mullman, Jeremy Byline: JEREMY MULLMAN Corona has long been miles away from the ordinary-and the competition. But for the first time in 16 years, the seemingly unstoppable Mexican import is seeing sales decline. And while the brand’s executives chalked up the erosion to a price increase, analysts and the ever-expanding list of challengers storming Corona’s beaches aren’t so sure. Wall Street analysts and some of the brand’s rivals point to a frothing head of new or reinvigorated brands that appeal to traditional Mexican import drinkers-including Dos Equis, Miller Chill, the forthcoming Bud Light Lime and even Corona’s resurgent sibling Modelo Especial-as creating a more difficult competitive environment than the No. 1 import previously has faced.

“We’re getting growth from them,” said Eduardo Casas, director-Mexican brands at Heineken USA, which markets Corona rivals Dos Equis and Tecate. “There is no question we’re affecting their business.” Executives at Crown Imports, which markets the laid-back brand in the U.S., seem unperturbed. “There have been dozens of brands introduced by many competitors who have unsuccessfully tried to emulate the success of Corona,” said a spokesman, “and we don’t see why these attempts would be different.” One executive at the brand’s longtime ad agency, Cramer-Krasselt, laughed when asked if the brand would alter its long-held “vacation in a bottle” strategy-best known for endless variations of beer drinkers enjoying a Corona on a beach. go to website jimmy buffett tour 2011

And, in fact, planned ads for Corona and Corona Light don’t veer much, if at all, from the sun-and-sand-soaked standards it’s been running since 1993. One, called “Treasure Map,” starts with an aerial view of a beach with an “X” on it that’s ultimately revealed to be an umbrella under which two drinkers are enjoying Coronas. A print execution shows two bottles side by side in front of a rocky beach: In one, a lime labeled “Snorkel” bobs near the neck of the bottle; in the other, the lime is fully submerged and labeled “Scuba.” “It’s that relaxed, unadorned simplicity inherent in Corona’s personality that separates it not only from its direct competitors in the beverage-alcohol industry but also from any other consumer product on the market today,” said Timm Amundson, VP-marketing for Corona. here jimmy buffett tour 2011

The agency executive dismissed the new competitors as the latest in a long line of Tequiza-like beverages that have failed to dent Corona. But Tequiza and other past challengers to Corona were not as well-funded as the current crop, which has collectively spent more than $100 million. Miller launched its lime-and salt-flavored Miller Chill last year, spending $25 million on a national media campaign and perhaps twice that much this year, an amount that would almost equal the $53 million Corona spent on its base brand last year.

While Miller Chill’s flavor profile differs from that of Corona-even one with a lime shoved in the bottle neck-there’s little question its Spanglish-tinged ad campaign lured some Corona drinkers away. Miller’s internal research found that 15% of the brand’s volume otherwise would have gone to Corona, according to two people who’ve seen the numbers.

Not to be outdone, Anheuser-Busch this year is launching Bud Light Lime-on Corona stronghold holiday Cinco de Mayo, no less-with a $35 million marketing budget that will compete directly with Chill and indirectly with Corona.

A-B last year also launched Landshark Lager, a niche brand that swiped Corona’s longtime Jimmy Buffett tour sponsorship and nosed its way into Mr. Buffett’s Margaritaville restaurant chain. This year, Corona is moving on to sponsor Kenny Chesney’s concert tour .

Older Mexican brews are also ramping up spending and picking up share. On the high end, Dos Equis last year launched its largest campaign, dropping $8.5 million on measured media, about 50% more than it spent the year before, while on the low end, its sibling Tecate targeted Mexican immigrants with a $16.8 million measured-media outlay, a 10% hike over the year before. Tecate also introduced a light version last year.

Some of Corona’s struggles can also be attributed to an economy that has been unusually rough on its key markets-such as Southern California-and may wind up tightening the budgets of higher-end drinkers who may be less willing to spring for more expensive beers.

“In the past, [mega-imports have] always bounced back,” said Beer Marketer’s Insights Editor Benj Steinman. “But the past isn’t always a prologue.” jmullman@adage.com CAPTION(S):

Life’s a beach: The “Vacation in a bottle” pitch isn’t likely to go away.

Mullman, Jeremy


1 comments
Chaddo
Chaddo

Drew is a libertarian. In this case he's basically right, but I don't exactly trust libertarians and frankly they are starting to really annoy me. I used to be one, so I know how they think. It basically goes like this: A. Adhere to a rigid set of ideas B. Cherry pick stuff that fits those ideas C. Ignore everything that doesn't or lay blame elsewhere (e.g. its the fault of voters who are dumb, nativist, lazy, blah blah blah). On the subject of illegal immigration, for example, they write about how good it is for America- from their offices in a metropolis that's located nowhere near the Mexican border. And most annoying of all is John Stossel. If there's some pearl of wisdom that your momma taught you, he's got proof that it's a myth.

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