- Based on the data in the Corona Beer case, what is Corona’s 1996 U.S. market share of the (a) total beer market and (b) imported beer market?
[Hint: Use case shipments, not dollars, to compute share.]
- Marketers use the term “share of voice” (SOV) to describe the degree of marketing effort by a brand relative to other competing brands. Based on the case data, what is Corona’s 1996 advertising SOV in the (a) total beer market and (b) the imported beer market?
- The Corona Exhibit 6 is a modified version of the one in the Corona case. Note the last column on the right, “Corona Sales”. These data are crucial for you to address the following task: compute the relevant BDI/CDI indices (formulas discussed in the lecture) for each state.
- Determine the most promising states for Corona to allocate additional promotional resources, including but not limited to the BDI/CDI computations performed above. Consider any other data in the case that would affect your assessment of market attractiveness. Justify your selections. (250 words maximum)
- Compound Annual Growth Rate (CAGR) is a useful managerial tool. You may need to refresh your memory on the concept (Links to an external site.) . Use this handy CAGR calculator (Links to an external site.) to compute (a) Corona’s and (b) Heineken’s sales (in cases shipments) CAGR for 1990—1996.
- Assuming the CAGRs computed from the case data remain stable in the short term, project (a) Corona’s and (b) Heineken’s sales (in case shipments) in 1999.
- Another perspective on budgeting promotional expense is the industry advertising-to-sales ratio. (a) What is the industry ad-to-case shipments ratio for import beer advertising in 1996? What are (b) Corona’s and (c) Heineken’s ratios?
- Considering all the data in the case, what amount do you recommend that Corona spend in 1997 if it desires to become the #1 import brand by the end of the year? Justify your recommendation. (250 word maximum)
