Article Analysis Essay on Presidente Beer Takes on the Import Competition in South Florida

Introduction

The article Presidente beer takes on the import competition in South Florida: Dominican beer known for its white veil of ice is making inroads in South Florida gives a clear history and a summary of how the Presidente beer came into existence in the Dominican Republic. The article also provides insight into how the beer has emerged in the brewery business. It also explains the challenges that it has faced as an upcoming beer in the market and some of the strategies that have had to be put in place to increase sales in South Florida. The article further explains the history of the Presidente beer in the Dominican Republic, the existence of the beer, the marking strategies and finally, the current state of the company.

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History of Presidente Beer

A Spanish family moved to the United States and started a cigar business. They produced the hand-rolled cigars. The cigar business was a success. Later on, Philip Moris and Leon Jimenes joined one another and came up with the idea to start the cigar business. They proposed the idea of growing tobacco so that they would minimize the cost of buying tobacco from other companies or farmers. In 1983 they moved from Alaska, where they had the cigar business and shifted to the Dominican Republic to make the brew (McClatchy, 2008). The family thus founded the Presidente beer and named it Presidente in honor of the Dominican Republic president Raphael Leonidas Trujillo.

The family later bought the biggest brewery in Dominican, and the businessmen in the launched it in the United States in 1929 (McClatchy, 2008). By this time, it had not gained mass. Being a new product in the industry, most consumers were not yet familiar with the beer. All this changed in the year 1930; this was when they introduced iceboxes to the beer (McClatchy, 2008). They served the beer cold. This made everything change for the consumers enjoyed it very cold. Its market shifted significantly as Presidente beer became famous for its coldness. This attracted more investors who offered to finance them with iceboxes. This was a good offer for the iceboxes, which were by then being sold at extremely high prices at the retail shops. Presidente grew widely and became famously known as the 'bride,' a term used to describe how the beer was dressed like a bride with the white frost on top of it. This white frost resembled the white veil of a bride. It was commonly known as the cold one in the restaurants and bars (McClatchy, 2008).

Existence of the Beer

The beer's popularity grew in large masses. Dominicans started to migrate, especially in New York. Due to the sweetness of the beer, the people of the Dominic Republic opted to move with the beer to New York. Most of the people took the cases of the beer with them. This made the manufacturers of the beer to think of a better way of helping their consumers to be able to carry a large quantity of beer at ease. The manufactures and the founders of Presidente came up with the idea of using a chubby bottle for ease in export (McClatchy, 2008). The effort later failed because the consumers were fond of the long neck bottles. It forced the company to go back to the long neck bottles as they have used earlier. After all, in business, responding to consumer preferences and needs is essential in increasing the demand for a product or service.

They attempted to sell Presidente in South Florida as the area had a preference for imported beer due to its high population and position as an international trade hub. According to the Beer Marketers' Insight based in Nanuet, New York, Presidente Beer sales went up by 7 percent from the previous decade (McClatchy, 2008).

Marketing Strategies

Presidente started small in South Florida in the year 1991. It roughly targeted a population of about 30,000 people within the Dominican community. According to the vice president of the Presidente beer, sales were approximately 40,000 with the little amount spent on marketing (McClatchy, 2008).

Competing with the leading imports in the region such as Heineken and Corona was close to impossible. To be able to have a shoot at this highly competitive business, the founders of the beer had to come up with a strategy on how they will market their beer to have a chance in this competitive market. They offered to sponsor some of the Dominican festivals; this was to help them to sell their brand to the locals (McClatchy, 2008). They also bought a few radios spirits in Spain language to crossover mostly to Cubans, and it was not a very good offer for it did not reach the people who could not understand Spanish. It was, however, a better deal than nothing at all. The little marketing strategy enabled them to acquire more costumers.

Export sales gradually increased. Presidente beer relied mainly on $1.off coupons, and this was to position the beer slightly cheaper than the imports (McClatchy, 2008). The consumers could consume the beer, and the continent of their own are other than importing. Not only was it convenient, but it was also cheaper.

The Current State of PresidenteIn 2019, Presidente beer sold about one million cases in Florida topping this off with the four million cases sold in the Dominican Republic. Competition is rising higher in Brazil's Brahma beer as they recently built a factory seeking to steal some of the brewery's ninety percent of the market at home (McClatchy, 2008). The action presented a significant challenge to Presidente beer as it will not be able to sell its beer in Brazil. The company has also launched light beers and can beers.

To compete favorably and stay on top of the competition, Dominican National Brewery has built a larger and more high-tech headquarters in Santo Domingo at the cost of $ 400 million (McClatchy, 2008). The headquarter will facilitate the Dominicans with job opportunities and with this will come to a long-term benefit to the company, this is where the people will tend to promote the business more rather than going out to import beers from other countries.

In 2006, Dominican partners took over Philip Morris stake in brewery, swapping their shares in Marlboro operations. To fund the deal, the brewery is selling about $134 million in bonds, and its first issue is the Dominican market (McClatchy, 2008). Presidente Beer has unquestionably come a long way in terms of sustainability and market competitiveness. Last year in the United States, Corona sold 8.3 barrels of beer while Heineken sold 5.3 barrels of beer, Presidente sold 110,000 barrels of beer, they were also able to sell a little in South Florid and New York. This information is according to Beer Marketer's insights (McClatchy, 2008).

Summary and Review

In summary, this article has been able to give out facts concerning the president beer, how it came to existence, the founders of the beer, its strategies to market the beer recognized around the community and other countries at large. Also, most people are fond of presidente, despite the growth of other beers in the industry. He adds that most of the clients in the bar come in and order the 'cold one' as they are fond of it for its coldness and how it makes the white form. He further tells us how he also takes a pack of it at home and relaxes with it down when he is not working. The depicted is, thus, evidence that the product of Presidente is of good quality.

Conclusion

In conclusion, the brewery business is a tough one, and it requires people who have a clear understanding of the business. It needs a good team of people to market it to be able to top in the game. Presidente beer has come a long way in the market, and the strategies that they have been put in place will work a long way to helping them market their products. According to this article, the beer has made good progress in handling and selling the white veil to the consumers. Its objective is to satisfy the customers need and that is what they do. The action is a positive remark to the brewery industry,

Reference

McClatchy, D. H. (2008). Presidente Beer takes on the Import Competition in South Florida: Dominican Beer Known for its White Veil of Ice is Making Inroads in South Florida Tribune Business News; Washington. Retrieved from http://www.webrtcworld.com/news/2008/04/13/3383371.htm