Black and White South African beer consumers: the influence of marketing mix elements on brand choice
Date
2012-10-02
Authors
Sukuram, Rohan Dev
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Abstract
The South African beer industry is one of the most lucrative in the world but is currently facing a few big challenges such as increased regulation on advertising, increased excise duties and new international competition. South Africa is also experiencing a shift in consumer spending from the white to the black middle class segment. While this provides an opportunity for beer marketers, they need to understand the reasons why these different segments make beer brand choices. This could contribute to achieving a competitive advantage and increased market share, volume and profitability during these challenging times for the liquor industry.
The purpose of this study is to understand which of the marketing mix elements most appeal to and influence the two largest beer consumer groups in the country. A literature review was conducted to provide an overview of the South African consumer and beer market as well as to highlight the marketing mix and its various elements. Key findings from the study were that most of the marketing mix brand choice drivers are similar for both segments but that some are more important to one consumer type compared to the other and that brand image was seen as important to black consumers while white consumers expressed that the actual product and its quality was important. The most impactful and influential marketing mix element for both groups was the “Product” element.
Black male consumers were found to purchase and consume most of their beer at “on premise” consumption outlets compared to white consumers who purchased most of their beer at bottle stores to be consumed at home. The implications for marketers of beer is that they will have to utilize customized marketing programmes to appeal to each segment in order to utilize their marketing spend optimally. Recommendations are also provided on how current beer producers and manufacturers can overcome their challenges and continue to grow their volume, market share and profitability.
Description
MBA thesis - WBS
Keywords
Marketing mix, Beer consumers