Brand Management Individual | Assignment

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Added on 2021-01-11

Brand Management Individual | Assignment

Added on 2021-01-11

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Brand Management Individual Assignmentby Bonginkosi Nkambule 2170768941

Table of ContentQuestion 1..............................................................................31.1.........................................................................................3Question 2..............................................................................42.1........................................................................................42.2.........................................................................................Question 3..............................................................................3.1....................................................................................... 2

Question 1 1.1 As PAUL enters the South African they should take into account the following: Challenges According to the South African Reserve Bank (2016:2), the South African economy hasbeen on a downward trend since 2011 where it reported a growth rate of 3.2%; to beingforecast to grow at 1.4% in 2018, from 1.3% in 2017. This trend may adversely affectPAUL as it reflects weak demand for products and services in general. Incomegenerated from the Food Service industry decelerated by 5.9% from 4.33 Billion in 2016to 4.29 Billion in 2017 (Department of Agriculture, Forestry and Fisheries, 2017:7). Thistrend reflects that the market might be experiencing some form of maturity thus callingon industry players to grab existing market share or establish niche markets like whatPAUL has done by entering the French cuisine space. The South African Food Serviceindustry has a high failure rate which currently stands at 62% within the first years and82% within the first 5 years of operation (Mhlanga, 2018:408). This trend can affectPAUL negatively as it seeks to maintain its staying power in the industry. A greateremphasis on customer retention can help circumvent this challenge. South Africa’sdata charges are considered amongst the most expensive in the world (ICASA2016a:13), even though the number of fixed, wireless and mobile connections nowstood at 47 726 307 as it September 2017 (ICASA 2016b:3). This perception may stiflePAUL’s reach in digital platforms as more and more consumers may be able to view itscontent. Since PAUL wants to launch its restaurants in super regional malls likeMelrose Arch, they should take cognisance of the decline in growth of trade density inthis category of shopping malls; where growth went from 5% in 2012 to -7% in 2018(South African Property Owners Association, 2018:8). This negative growth may reflectthe closure of shops in these shopping malls (South African Property OwnersAssociation, 2018:8). The Cost of Occupancy to Sales ratio of Super Regionalshopping malls is also on the increase as reflected by a climb from 8.2% in 2015 to10.8% in 2017 (South African Property Owners Association, 2018:10). This means thatPAUL should sell more meals in order to cover rent.3

OpportunitiesFrom 2015 to 2016, South Africa saw an increase of 12.8% (to 10 million) in the numberof international tourists which if added to the 11.4 million domestic tourists brings thenumber of trips taken to 24.3 million (South African Tourism, 2016:10). This largenumber of tourists provides PAUL with an international customer base of tourists whomay be familiar with the brand in their home countries. The emergence of ride sourcingservice provider, Uber - with its network of 4000 drivers (2500 of which are in Gauteng),has greatly improved the South African night life by providing an alternative for peoplewho might want to go out and have a good time without putting their life in danger bydriving drunk (Hemana & Sifolo, 2017:7). According to the (Industrial DevelopmentCorporation, 2017:3), the weak rand provides an opportunity for global companies toscale up their investment into South Africa. This means that, as a company that mayhave expansion plans into other urban and high-end South African locations, PAUL willbe getting more Rands for their Euros thus enabling them to capitalise the business.Question 2 2.1PAUL currently uses Buzz Marketing which is defined by Leila and Abderrazak (2013:3)as a marketing practice that involves placing brand cues in populous public spaces soas to build excitement and an urge amongst consumers to disseminate marketinginformation. PAUL also uses publicity by offering high end media houses an opportunityto get exclusive coverage of events and products. PAUL also uses opinion leaders inthe form of influencers who are invited to get a firsthand experience of the brandthrough baking classes in hope that they will use their influence to encourage theirfollows to visit the bakery and restaurant. PAUL uses referral marketing by encouragingcustomers to take pictures in their bakery and restaurant to share them with their socialmedia followers. PAUL also runs sales promotions in the form of competitions wheresocial media followers are encouraged to create campaign collateral and stand achance to win certain prizes4

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Brand Management Individual | Assignment