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Corona's Risky Brand Dilution

Posted by Abe Sauer on October 20, 2009 06:35 PM

Corona may be dealing with some bad PR over a fake ad, but its real advertising campaign may also be losing its way.

Corona's parent Constellation Brands appears to be having a good year. Hard times may be good for alcohol makers. But that's not the case for the group's Corona beer brand, which, as a premier label, is suffering as strapped consumers turn to lower tier beer brands. The brand is hoping to counter this by introducing 24-ounce cans of Corona to the market soon.

Corona is also bumping up its ad exposure during premier sporting events such as the Major League Baseball playoffs and National Football League games. Any football fan is aware of this, as Corona ads have become more numerous and subtly different in tone.

Overall, this is bad news for Corona. In a chase for profit, Corona is doing itself the disservice of diluting its brand. First, its introduction of always-classy 24-ounce versions will put the brand in line with low-rent booze brand, sending the message that "Corona is good for a cheap buzz."

Then: Corona's now iconic ads, featuring tranquil, dialogue-free shots of relaxing in paradise, have recently featured football themes with football jokes and even football noise, which of course only helps them blend in during games where every ad (especially for beer) has a football theme and football noise.

If Corona keeps this up, they are going come out the other side of the downturn to find their brand cheapened, without too many options for taking it back up.

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Comments

Mario Echevarria United States says:

You have to realize that Corona is actually an premium "American" brand here in the U.S. being that the U.S. marketing messaging has made it what it is.  In Mexico, Corona is considered a cheaper brand with many premium brands that true beer drinkers prefer.  So if they are going football and baseball, well can't get more American than that!

October 21, 2009 11:29 AM #

Abes Sauer United States says:

So true. Kind of the Stella Artois of Mexico.

October 21, 2009 12:04 PM #

Hector C Guatemala says:

Let's not forget that marketing is a verb.  The way a brand moves in the real world has nothing to do with book theory.  As long as the brand has a clear vision and a real plan I don't think there's much to "worry" about!  Keep the drama for politics, not for brands that take risks in the marketplace.

October 21, 2009 06:22 PM #

Chinese Lantern Festival United States says:

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