Outlined below are a few descriptive recommendations to SAB suggesting how Hansas marketing strategy could be changed from a niche market product to a mainstream brand:
Despite Hansas recent success, SAB has had to shift perceptions of Hansa over the years and transform their brand into a mainstream beer label. Prior to considering re-launch into a larger, more mainstream market SAB should conduct research and scan and analyse the current South African environment. PESTLE (Political, Economic, Sociological, Technological, Legal, Environmental) analysis and SWOT (Strengths, Weaknesses, Opportunities and Threats) are tools which would greatly assist SAB in understanding their markets and which segment of the market Hansa could operate in competition to its other beer labels.
This research will help SAB to identify the internal and external environmental impacts on markets across South Africa and should help identify whether Hansa could continue to satisfy a niche in the beer drinking market or whether its offering of a unique Pilsener taste and low ABV content would be more attractive to a larger, more mainstream market.
Through the use of focus groups and market surveys, questions such as these below would assist SAB in identifying a shift in demand for Hansas offering:
Would you buy a lighter beer?
If you wouldnt, what would your reasons be?
What beer do you currently buy & consume?
Why do you buy it?
Are you brand loyal?
Do you side towards South African beer only?
Would a German beer with a unique taste interest you?
Why would it interest you?
Would you buy it?
At what price would you buy it?
Do you know what a pilsener is?
The outcome would have been startling and a complete contradiction to American trends. The research would have concluded that the white South African target market would not be interested in a lighter, “weaker” option. Based on this information and the research extracted from other racial and gender segments SAB could have looked for alternative segments to target Hansa.
I recommend, based on the outcome of the information generated from both the PESTLE and SWOT analysis SAB should avoid targeting a white male market.
The white male market was already matured with well known and established beer brands and as identified in the analysis, a lower ABV product would not be welcomed nor consumed by 5% plus ABV beer drinkers. Targeting a majority black population would be a key factor in turning Hansa revenue into large profits for SAB.
Despite the black market not a previous target option due to legislation, this did not mean that beer brands were unfamiliar to them. However, brands such as Castle may not have been welcome in the black population due to strong links to an oppressive minority user. This would bode well for Hansa as it was a new product to an untapped market, with strong ties to a Germanic Heritage. This heritage may also play a crucial role in promoting itself as a status product amongst the black community.
Identified target market based on the analysis would be: