Marketing Report: Analyzing the Around the Pub Sport Bar's Strategy

This report provides a comprehensive marketing analysis of the "Around the Pub Sport Bar." It begins with a PEST analysis, examining the political, social, economic, and technological factors influencing the bar's operations in South Africa. The report then delves into industry trends and competitive analysis, highlighting the challenges and opportunities within the pub sector, including the rise of competitors and the impact of technology. A key focus is on market segmentation, identifying target demographics based on income, age, and lifestyle, and geographical segmentation within South Africa. The report also explores the bar's positioning strategy, suggesting enhancements like cocktail lounges and cigar bars to upscale the brand and attract a wider customer base. The report concludes with a list of references used in the analysis.

Running head: AROUND THE PUB SPORT BAR 1
AROUND THE PUB SPORT BAR

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Table of Contents
Marketing environment...................................................................................................................3
PEST............................................................................................................................................3
Political.....................................................................................................................................3
Social........................................................................................................................................3
Economical...............................................................................................................................3
Technological...........................................................................................................................3
Industry trends..............................................................................................................................3
Competitive Analysis...................................................................................................................4
Market segmentation, Target market...............................................................................................4
Market segmentation....................................................................................................................4
Geographical segmentation..........................................................................................................4
Primary target...............................................................................................................................5
Positioning strategy......................................................................................................................5

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Marketing environment
PEST
Political
South Africa as country is parliamentary republic and there have been several changes in the
licensing laws which are in alignment with the political government of the South Africa.
Politically around the Sports bar have the permission for the late night openings and the long
hours which itself is a core feature of the bar. Also the policy of the national minimum wages
increased the salaries of the employers in the Around the pub sports bar and employment strike
the door. Apart from this the challenging part for the bar is the increase in the duty on alcohol
from 10% to 15%.the government is also palling to increase the duty on beer to 9%. This could
be a challenging feature for the bar (Cape town magazine, 2018).
Social
Culturally the pubs are the center for the social life and it enhances the opportunities for the
families as well as the friends to cater the services of the food and beverages and breweries along
with the quality time. Around the pub sports bar in South Africa meets all the requirements of the
company and provides a wide range of food ranging from Thai, Continental to side drinks such
as beer, whiskey. The ambience involves the live music and the theme based nights to give extra
youngness to the consumers. Majorly the youth of the South Africa has been high in population
enjoying at Around the pub sports bar. The mission of the bar also states to cater the customers
along with the awareness being responsible consumer of alcohol (The morning advertiser, 2017).
Economical
The African currency Rand is all time low and the problem with the RBI is has the ability to
influence the RAND and as the reserve bank responds the interest rates spikes up and weakens
the value of the RAND. The currency is also subjected to the market forces. This creates a
problem for the industry to expand the business in the South Africa. The high exchange rates and
the duty on the beer and alcohol seem to be difficult to manage for any bar in South Africa.
South Africa primarily trades with China and the economy of China on the other hand tends to
slow down (Cape town magazine, 2018).

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Technological
There are wide advancements with regards to the technology in the pubs and the bars. May it be
just form the notice board and to the entire interior of the bar the technology has revolutionized
the standards of the pubs and the bars. The facility of the projector the wide range of the
channels options, live music and the in house speakers, all these have attracted the large number
of customers. The storage tanks to store the large beer has modernized from refrigerators to
monastic beer cellars. The cellar technology improved the experienced of the customer and this
again comes at a heavy cost. This again is a challenging path for Around the sports bar to tackle
for (Fessha, 2016).
Industry trends
The industry trends of the pub industry have been fluctuating over the period of last five years.
Restaurants and the coffee shops are also opening the side bars and they account for 47.4%. The
catering and the services accounts for 14.2% whereas the take away and the fast foods forms of
38.5%. the total income of the south Africa has been spurred by the spending in the pubs, bars
and the mainly in the food and the beverage industry. On the other hand the salaries are quite low
in the case of the food and beverage industry (The morning advertiser, 2017).

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Competitive Analysis
On the competitive landscape the Around the pub sports bar has the huge competition against the
Gino’s Sky bar situated in Durban, or 31, one of the most famous night club in Cape town. In
terms of the cover charges the 31 cape town offers the services at R150 per person whereas the
same services are offered by the Around the pub sports bar in R160 per person. The expensive
and the decorative interior of the 31 café is what attract the customers most. The Around the pub
sports bar shall invest in improving the ambience through ancient arts and the unique chandeliers
that can naturally light up the bars (Market Insight, 2019).
Market segmentation, Target market
Market segmentation
Around the pub sports bar is highly competitive and the customers are majorly segmented on the
basis of the income and the purchasing power capacity of the customers. The middle class, white
collar and the office workers are serviced from the down tow area. On the other hand the market
is also segmented on the basis of the youth, the late night party people and the weekend people.

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Geographical segmentation
Now days there are wide range of technologies have shaped the food and the beverage industry
at all together at the different upfront. The food and the bar sales in South Africa tends to be
second highest income wise. Restaurants and the pubs in South Africa earned more income for
the month of January, earning about 2.684 billion. Geographically Cape Town seems to be the
most happening place to boast the nightlife, however around the sports bar shall expand the
business outside South Africa it get the international opportunities as well (Rogerson, 2016).
Primary target
The primary target of the Around the pub sports bar shall be to capture the old generation, the
families and the mothers who wish to enjoy at the age of 50’s. Of course youth will make most
of the part but the major focus of the bar shall be on the odd generation due to the low chances of
entry of the other bars in this niche category. There are ample amount of opportunities for the
Sports Bar to grow and make a name for the similar services but different age group (Market
Insight, 2019).
Positioning strategy
In order to be the amongst the favorites the Around the pub sports bar shall introduce the cocktail
lounge and the cigar bars as they upscale the brand and the image. The cigar bars is the new
concept and not much of the bars have opted for this option. The bar promotions shall be done to
reflect the culture and target market of South Africa. The multidimensional positioning strategy
shall be followed by Around the Sports Bar to cater the needs (Cabras, Higgins & Preece, 2016).

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References
Cabras, I., Higgins, D., & Preece, D. (Eds.). (2016). Brewing, Beer and Pubs: A global
perspective. Springer.
Cape town magazine, (2018). Your guide to nightclubs and bars in Cape Town. Retrieved from
https://www.capetownmagazine.com/nightclubs
Fessha, Y. T. (2016). Ethnic diversity and federalism: Constitution making in South Africa and
Ethiopia. Routledge.
Market Insight, (2019). South Africa’s Food and Beverage Sector. Retrieved from
https://www.southafricanmi.com/south-africas-food-and-beverages-sector.html
Rogerson, C. M. (2016). Developing beer tourism in South Africa: international perspectives.
The morning advertiser, (2017). How has pub technology changed since 1974. Retrieved from
https://www.morningadvertiser.co.uk/Article/2019/02/12/How-has-technology-in-pubs-
changed