Answer to Question #233645 in Marketing for KUKU

Question

how does economic factors involved in King Lager to penetrate in kwazulu-natal market(political economic, sociocultural, technological, legal and environmental)

Answer 1

King Lager is one of the beer products produced by the Namibia Breweries Limited (NBL). It is produced using only natural ingredients with no additives or chemicals and is brewed to the same high standards that consumers trust from beers made by NBL. King Lager is a recognized brand and entering the KwaZulu-natal market is definitely going to shake the market. I expect the marketing manager to use the marketing tactics to easily penetrate the market such as pricing methods, allowances, payment terms, discounts, quality packaging, advertising, sales promotion, and public relations. King Lager's penetration into the KwaZulu-natal market will be faced by political factors such as taxation regulations. NBL must comply with both the local and state to legally produce, distribute, and advertise their products. Everything from the ingredients to the labels on the cans must be approved before the product can hit the shelves.

On economic factors, It will be competing with the existing big boys' beer producers in the South African market and will have a scramble for profits through the scratch of market attention. They’re local brands you likely won’t hear about unless you visit their town of origin. Still, they’re able to thrive by carving out a niche in this business. On socio-cultural factors, there is constantly at odds with public opinion and, as a result, it’s likely to witness an opposition of sales. Two types of people are leading this brigade: the moral or religious and the health-conscious. King Lager has to utilize the fact that it uses naturally produced materials to produce it and that it can be trusted even by religious people and thus become socially and culturally accepted with the KwaZulu-natal market. On the technological aspect, King lager must have the leading tech to speed up their distribution process, which reduces delays. This way it can increase the amount of beer produced or reduce the costs of production making it more competitive and make it supply the whole KwaNzulu-natal market sufficiently. On the legal aspect, King Lager will face laws and regulations that it has to comply with for them to stay in the market otherwise won't survive in the market. On the environment, it should be aware of the market threats, opportunities to utilize, and the competitors in the market.