In our previous blog post, we looked at how Dos Equis has been continually improving its sales in the US while Heineken has been losing its. Similarly, over the last couple of years, Corona has continued to see its sales decline. Are Corona’s numbers declining for the same reason Heineken’s are?

There might be some similarities between their two situations, but there is also a fundamental difference – while Heineken has been relatively quiet in the US, Corona has been consistently advertising. So Corona’s problems are not related to its lack of advertising.

That leaves a few other possibilities – the effectiveness of the ads and the product itself being two prominent ones. Focusing on advertising, we already discussed how effective Dos Equis’ “Most Interesting Man in the World” ads are, but how about Corona’s “beach” ads? From a product positioning perspective, Corona positioned themselves to own the “cold beer at the beach” imagery in consumers’ minds, and for a while also mostly owned the “Mexican beer” position in the US. However, given that Dos Equis has been advertising strongly for several years now, the “Mexican beer” brand position is more evenly split between the two. Moreover, for the ten months out of the year when most people don’t think of the ideal beer to drink on a hot summer’s day, they’re not thinking Corona. So, although Corona might have been successful in owning the beach imagery, that also pigeon-holed them into a smaller place in consumers’ minds. Dos Equis, on the other hand, remains prominent in any season. Moreover, because of the “Most Interesting Man” ads, Dos Equis holds a more premium image, which is the segment of the beer market that is climbing.

Interestingly, in Mexico, Femsa (make of Dos Equis) has not aggressively run its “Most Interesting Man in the World” ads. Coincidentally – or not – Dos Equis’ market share has fallen significantly compared to Corona.

We’ll have to see what happens next, given that Heineken is now in the process of buying Femsa. Will they be smart enough to expand the successful Dos Equis campaign to Mexico or will they pull back on it in the US?

Domus is an advertising, PR, and internet marketing agency based in Philadelphia. For more information, please visit us at http://www.domusinc.com.

As recently reported in Advertising Age, Heineken USA’s sales fell nearly 11% in 2009. At the same time, Dos Equis, selling at a similar price point, had sales increases of about 20%. What’s different between the two brands?

For one, Heineken has had virtually television advertising for a long time (or if it has, it’s been completely unmemorable). On the other hand, since 2007 Dos Equis has been been consistently running one of the best advertising campaigns around, its “Most Interesting Man” campaign.

Yes, Dos Equis has expanded also its marketing to include billboards, print ads, a redesigned web site, and social media pages. (The Dos Equis Facebook fan page has a couple of hundred thousand fans; visitors to its http://dosequis.com web site stay an average of 7-1/2 minutes.) But how many people initially became aware of or interested in the “Most Interesting Man ni the World” from sources other then Television? Some, probably not most.

The lessons? First, television advertising still works, and works well. But as has always been the case, content is king. If the ad is ineffective, no amount of air time will make up for it, but if the ad is effective, television remains an incredible medium. Next, integrating social media naturally around an ad campaign can increase its effectiveness. That doesn’t mean just creating any old social media presence, and it doesn’t mean running a social media campaign independently of the rest of the marketing campaign. It means integrating everything together so that they are synergistic with each other.

Domus is a marketing communications agency based in Philadelphia. For more information, please visit us at http://www.domusinc.com.