Principles of Marketing: Corona Extra Beer

This paper discusses the market segmentation, evaluation, target market segments, and positioning strategy for Corona Extra Beer in Malaysia.

Running Head: Principles of marketing: Corona extra beer
PRINCIPLES OF MARKETING: CORONA EXTRA BEER
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Principles of marketing: Corona extra beer 2
Assignment I: Principles of marketing (Corona extra beer)
How do you segment your consumer markets?
Effective market segmentation is crucial to the success n achievement of a products goals
and objectives in its target market, moreover, it creates a better basis of understanding of the
audience in the target market and how they will respond to the product. Therefore, Market
segmentation can be defined as the process where an organization creates sub-groups from a
larger population in a market to specifically target them more and understand them (Grant,2016).
Corona Extra is a Mexican based beer that is distributed by Carlsberg in Malaysia. According to
Malaysia traveler (2018), As you would expect for a majority Muslim nation, alcohol
consumption in Malaysia per capita is quite low where only 3.5million consume beer out of 29
million population where most are lifetime abstainers. How can Corona extra beer segment the
Malaysian market?
Geographic segmentation-This is dividing the market based on the geography of a target
market through country, cities, counties, or suburban areas. Malaysia has a Muslim majority
which affects beer consumption in the country where its low per capita. Therefore, for the corona
extra beer product, I would segment the target through identifying cities that consume beer
especially where there a large significant number of tourist or foreigners such as Kuala Lumpur
and further segment it based on its districts that have potential growth for consumption of beer
(Baker, 2016).
Demographic segmentation- this is dividing the market based on the age, religion, and
income in order to target the consumer more accurately and meet the customers’ needs. The
consumption beer market has largely been impacted by the Muslim religion which is the majority
segmenting the non-Muslim consumer market will be effective, however, only this who have
reached the legal age drinking age limit in Malaysia (21years) (Armstron, et al, 2014). Corona
beer product is affordable however, it will be significant to identify consumers with middle to
high-level income and target them

Principles of marketing: Corona extra beer 3
Psychographic segmentation- this is segmenting the market based on the lifestyle,
attitude values attitude s or in general the social classes present in the Malaysia society. For this
corona extra beer product, I would focus on tourist, foreign locals, and residents who do not
mind to have a few at regular intervals, this could mainly be influenced by individual cultures
(Mahmoud, 2014).
Behavioral Traits segmentation-this is dividing the market based on the behavioral traits
such as level of usage. I could target nonusers to entice them to buy, prior users to get them back,
potential users to convince them to give Corona extra beer product a try, and current users to
strengthen their level of commitment through rewards programs such as discounts (Solomon et
al, 2014)
How do you evaluate your market segment?
Market segmentation is essential in identifying and maximizing the potential of each
individual consumers with an appealing approach, therefore, evaluating each segment ensures
that the firm does to a waste any resources in the long run (segments that will not buy any of the
firm's products) (Baker,2016). Therefore, matching each marketing segment characteristic to the
qualities of the corona extra beer product and the ability of the achievement of the sales
performance objectives by the firm should always be done, through the following
Market potential evaluation – I would evaluate the market potential of each segment by
identifying the number of potential consumers, their income and the number of people who will
need the product, they can be termed as market participants in the corona extra beer market as
they need the product and have the purchase ability, therefore, the market potential evaluation
could be equated to the number of consumers x their product purchase (Sandıkcı, 2017).
Sales potential -this is the share of a market segment that a firm expects to achieve in the
long run. To evaluate the sales potential, I would estimate the corona extra Malaysian market
share based on the performance of the product in adjacent markets, additionally, I would also
equate the sales potential through the average individual consumer's purchase x the total number
of consumers in each segment, this will give a general idea of what to expect (Sandıkcı, 2017).

Principles of marketing: Corona extra beer 4
Competition-competition evaluation is essential in each market, Corona has a boost in the
Malaysian market since its distributor Carlsberg has the largest share market, however, if, in a
scenario where the total sales of the corona extra beer products are below the market potential,
the products will achieve sales without having an effect on competitor brands, however, if the
sales are above the market potential then rivalry stiffens for the competitor brands as their
market share is affected
Elaborate on your target market Segments
Geographic segmentation-This is dividing the market based on the geography of a target
market through country, cities, counties, or suburban areas. Malaysia has a Muslim majority
which affects beer consumption in the country where its low per capita (De Mooij,2018);
a) City-identify major cities that consumer beer in Malaysia despite the low
per capita consumption and target them a good example in Kuala Lumpur.
b) District- After identification of the city, the districts within the city are
targeted and retailers can be used in selling the products to consumers e.g. supermarkets,
bars and restaurant
Demographic segmentation- this is dividing the market based on the age, religion, and
income in order to target the consumer more accurately and meet the customers’ needs
(Sandıkcı, 2017).
a) Age- strictly not for sales for persons under that age of 21 as stated by the
Malaysian laws, Therefore the target market is adults from 21 years and above
b) Income- Corona beer product is affordable; however, it will be significant
to identify consumers with middle to high-level income and target them
c) Religion- The consumption beer market has largely been impacted by the
Muslim religion which is the majority. Therefore, the products will target non-Muslim
consumers and other religions that may prohibit consumption of alcohol products market
will be effective

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Psychographic segmentation -this is segmenting the market based on the lifestyle,
attitude values attitude s or in general the social classes present in the Malaysia society.
Social grade Social status occupation
A upper middle class higher managerial, administrative or professional
B middle class intermediate managerial, administrative or professional
C1 lower middle class supervisory or clerical, junior managerial, administrative or
professional
Behavioral Traits segmentation-this is dividing the market based on the behavioral traits
such as level of usage
a) Non-users-Marek segments where they do not consume beer products but
they could be enticed to give corona extra beer a try
b) Prior consumers-These consumers were once market participants for the
corona beer market, however, they can be enticed back through making an adjustment on
the changes in their taste and preferences
c) Potential consumers- consumers who consume similar beer products but
they can be enticed to consume corona beer in the near future
d) Current consumers-They are active market participants and the strong
relationship can be further strengthened through reward and discount programs

Principles of marketing: Corona extra beer 6
Identifying Possible Value Differences and positioning strategy
Value Differences
a) Products differentiation – Corona extra beer has an exclusive packaging
with alight summer color with a sweet and exotic taste that is used to make cocktails
unlike major beer brands like Heineken and Carlsberg whose green in color and has a
sharp sour taste
b) Service differentiation- quality product service delivery both through
ordering through the official company website and use of retailers such as major
supermarkets, bars and restaurants
c) People differentiation – the firm has high-quality skilled employees who
are better equipped in customer relation and satisfaction to better strengthen the firm and
consumer relations
d) Image differentiation- This is essential in allowing consumers to identify
their needs with the brand, therefore the brand image will convey the product’s
distinctive benefits and positioning in the market
Position strategy
a) Quality Positioning Strategy-Most consumers are always concerned with the quality
of the products. The firm will take a key interest in ensuring that the corona beer product is of
high quality and even surpasses the consumers' expectations
b) Flexibility Positioning Strategy- the relationship between a firm and a consumer is
effective and strong in scenarios where companies are able to change their operations and
products service delivery to meet the consumer taste and preferences, they gain a competitive
advantage over their rivals. Corona beer will be flexible in such situations which will also be

Principles of marketing: Corona extra beer 7
efficient in branching out relative brands to cater for the changes in taste and preferences for the
Malaysian consumers (Rundle-Thiele, 2015).
c) Speed and distribution positioning strategy -This is the efficient and fast delivery
service that will be offered to consumers who order their corona beer products online or through
the conventional means, Moreover, the products have strategically placed for distribution and
access by consumers through the use of retailers such as major supermarkets, bars, and
restaurants
Design Position statement
This is a statement that will summarize the brand positioning of corona beer extra,
therefore the positioning statement for corona beer in Malaysia will be: After a hard day’s work
in the office, relax and calm your ‘nerves’ with the high quality and tasteful Corona beer extra
available at your favorite joint or just a phone call away.
Conclusion
Segmentation is essential to the success of an organization’s development and growth and
development .Therefore, Market segmentation can be defined as the process where an
organization creates sub-groups from a larger population in a market to specifically target them
more and understand them (Grant,2016).The paper illuminates entity of the corona extra beer
market penetration in the Malaysian market despite being a Muslim majority market
nation .Additionally the details discussed in the paper contribute to the analysis and evaluation
of the economic situation in the Australian supermarket and grocery industry .

Principles of marketing: Corona extra beer 8
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Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. (pp. 555-
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Mahmoud, A. (2014). The Emergence of Strong Global Companies Originating in
Emerging Markets. Journal of Marketing, 79(1), 1-9.

Principles of marketing: Corona extra beer 9
Malaysia Traveler. alcohol consumption in Malaysia. Retrieved October 2, 2018, from
https://www.malaysia-traveller.com/alcohol-consumption-in-malaysia.html
Rundle-Thiele, S. (2015). Social marketing: Singapore, Malaysia and Thailand.
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