Answer to Question #234748 in Marketing for Theresia Mbendeka

Question

discuss and analyze how legal factors involved in King Lager to penetrate in kwazulu-natal market

Answer 1

Reckless use of King Lager may harm society; thus, various social regulations exist to control the alcohol business in general and the beer sector in particular. King Lager differs from other consumer commodities in that this can be freely marketed, sold, or used in the Kwazulu-natal market. To reduce occurrences of alcohol misuse, King Lager industry participants must follow advertising guidelines that usually limit the content and hours when commercials can be broadcast. South Africa similarly has a three-tiered alcohol regulatory structure that divides industry actors into producers, distributors, and retailers. The former is not permitted to sell back to the consumers. There are additional restrictions on when and where alcohol may be served, impacting the King Lager sector. For instance, most states restrict Sabbath alcohol sales for drinking off-premises.

Furthermore, given its earnings capability in the Kwazulu-natal market, the King Lager sector is a substantial tax provider. The tax code categorizes brewers based on their size, classifying those producing approximately two million barrels annually smaller breweries and those producing more than that as major brewers, despite taxes being paid on every barrel produced. Efforts have been launched to increase the categorization of smaller breweries to a maximum of six million volumes per year and request a decrease in indirect taxes per barrel, pitting major breweries versus smaller breweries.