Madlala often relied on gut feel when making important decisions related to marketing Soweto Gold. How can he manage and use marketing information to make sound marketing decisions?

Case Study Below:

Ndumiso Madlala and his partner Josef Schmid, Soweto Gold was one of the best breweries in South Africa with its base in Soweto. Limited to expansion, the brewery had been located in Orlando West in Soweto. Mandlala had a dream had a success story of creating a beer brand that had been successful in Sudan and he thought it best to start his own beer brewing company. Though he quit his job once trying to actualize this, his dream suffered a setback when he missed his chance to get funding for his dream leaving him with months of unemployment and reduced savings. Mandlala had a dream that had been limited by finances and the need to provide for his family. With a young family to feed, he went job hunting back at his former company with the hope of securing employment but they did not take him back. He was later lucky to get employment from SAB, where he oversaw the creation of certain brands and went on to strategize on how best to not only awaken his dream, but to actualize it with a dream and a successful career, international experience and exposure, Mandlala's dream of having a locally brewed craft beer in Soweto would come true. In 2013, the two partners presented their business idea to IDC and their presentation enabled them to get the funding they needed as start their own company. They also got extra funding from Josef's family and used it to purchase equipment's from China. With a thin stretched business plan and limited funds, the two partners went ahead and invested in new equipment. After winning the Township Entrepreneur of the Year award, which came with R300000, they used those funds to increase their operations base, hired more employees, increased production of 25, 000 liters per month during the summer period therefore raising to the top and emerging as the largest craft breweries in the country. With their success came free media coverage from magazines, Forbes, CNN therefore gets both local and international media coverage and recognition. Challenges and opportunities Their location, in Orlando Soweto. This location limited their expansion and deliveries to and from the brewery was expensive due to the long distance from the main distribution markets and hubs. The size of the lot limited increased production of beer, leaving the two partners to debate on whether to move their location or find another manufacturing firm outside the township. The second challenge was finding a way to attract women consumers to consume their beer. By attracting women consumers, the brand would have increased sales and expand their market niche not only for men but women as well. Women in South Africa enjoyed taking Wine and alcoholic fruit drinks unlike in Europe where women enjoyed the drinking craft beer. Complaints from customers due to lower standards, but they gave out free keg to customers in a bid to regain their trust. However, the issue of producing low quality beer possesses as a threat to the company and if not well addressed could lead to the collapse or closure of the firm. It is no This study source was downloaded by 100000776675673 from CourseHero.com on 05-11-2021 03:39:58 GMT -05:00 https://www.coursehero.com/file/28425051/Soweto-Golddocydocx/ This study resource was shared via CourseHero.com(Surname)2 doubt that with expansion a firm may experience challenges with standardization of their products. Therefore, measures should be put in place to ensure that the firm retains its high quality beer. Another challenge is rapid growth. It is no doubt that a company's success is measured, but growth, however; rapid growth could pose as a threat to the firm. In this case, the firm was experiencing rapid growth, thus stretching their thin business plan therefore leaving some risks unattended. With rapid growth comes increased responsibilities, unforeseen challenges and an uncertain future. It is therefore essential to address and anticipate on how best to handle certain risks and scenarios before they happen in a bid to stay afloat. The opportunities that the firm has included one, free publicity. With the firm making headlines in both local and international platforms, it is essential that the firm takes hold and utilize the free media coverage it is getting. Free publicity means reduced expenses on marketing. The firm should strategize on how best to tap into the potential customers' minds and introduce their brand as a local company that is ready and willing to go the extra mile to provide quality beer. By tapping into the media, the firm has an opportunity to create awareness about its products while displaying what it has to offer. Second, the company has an opportunity to tap into beer that will appeal to the women customers. The company through research and free publicity can create a beer that will be enjoyed by the women, which would in turn increase sales and profit margins. By undertaking adequate research on the women population, the firm a creates a beer tailored to the women's taste thus not only branch out but also create something that they are sure about. Another opportunity that the firm has is creating good customer relations. Through creating a long lasting relationship with the customers, the brand is bound to continue rising higher. Though unlike other products, beer is personal as it is meant to satisfy an individual has need and make them feel good. The firm can achieve this through producing high quality beer with utmost consideration and investment in quality control. Establishing a well thought out and calculated Business plan that will enable the firm to have strategies in place on how maintain good profit margins, good customer relations and quality control standard. It will also elaborate on how best to tap into the women customer niche, how to maintain their current position; how to grow, how to improve employee productivity among other issues that need to be addressed. By so doing, the firm will be adequately prepared for the future with well-written procedures on what to do when faced with certain challenges. Possible solutions. Establish a well-written business plan that will have an elaborate account of the company's vision, goals, target, core values and plans. Benefits of a business plan include, staying on strategy thus acting as a constant reminder of what needs to be done to attain the set company goals. Another benefit is clear business objectives such as sales, new product launches among others. Another benefit is having a defined plan on sales drivers, business processes and potential markets. It also gives the business and employees a sense of priorities on what is important and what should come first before what. By establishing a well-defined business plan, this will This study source was downloaded by 100000776675673 from CourseHero.com on 05-11-2021 03:39:58 GMT -05:00 https://www.coursehero.com/file/28425051/Soweto-Golddocydocx/ This study resource was shared via CourseHero.com(Surname)3 enable easier decision-making; create a sense of cohesion, as all stakeholders will be on the same page. Another possible solution is taking advantage of the local and international media coverage to create an international brand sold within international markets. The firm's success has been highlighted by CNN, Forbes and other major media houses. It is through such platforms that the firm through its representatives should sell their brand and invite investors to collaborate with as they launch their presence in foreign markets. By collaborating with other firms, the firm would save on all the risks associated with the entrance of a new market. Through collaborating, they will have access to an already existing market. It will also reduce the time taken to create awareness of its presence due to an already ready market. It would also reduce the expenses on advertising, setting up, acquiring licenses and business permits among others. Another possible solution is establishing a quality control team to ensure that the quality of the beer is standardized and meets the quality threshold set by the initial founders. It is through offering the same quality beer that the firm retains its loyal consumers while attracting new ones. It is also through maintaining its standards that it meets its consumer needs and meets customer satisfaction. By doing so, it will not only increase sales volume, but also maintain consumer confidence and trust, thus, building a long well rooted relationship that will see return customers. It can do this by increasing the number of employees, thus ensuring they deliver quality work. With rest and good pay, the workers are better suited to be motivated thus more productive. The firm can achieve this through the creation of shifts, which would ensure maximum production by well-relaxed, motivated and productive workers. As the saying goes, happy worker, happy employer. Launching beer brands that will cater to women and the young generation. The firm has a chance to conduct research within international borders to ascertain the kind of beer brands that would do well for both the women and young generation. This would help expand not only the company brand, but also the target market, thus increasing sales volume and target market. By conducting research, the firm would save on time taken for trial and error, which would not only cost the company time but also its limited resources. By tapping into a new market, it would give the firm competitive advantage over its competitors thus creating dominance in the industry. Though rapid growth may pose as a threat, the firm should ensure that it is adequately prepared to handle large operations without compromise on quality and good customer service. This can be achieved through setting funds aside to act as a safety net in the event that more resources were needed to meet increased demands. It would also be advisable to seek assistance from a strategic advisor who not only knows how best to market the products, but also how best to manage the demand while ensuring the firm is not overwhelmed by the success and succumb to pressure. Looking at the few employees it has, the company has no experts to help the two partners in managing the firm as a brand and the success it is experiencing. Lastly, with increased operations and success comes the need to give back to the society. Though some may argue that the firm has done Soweto proud by putting it on the map for the right thing, it is also essential for the firm to fund initiatives to give back to the society through Community based Initiatives such as sponsorship. Given the fact that Mandalala was a beneficiary of a sponsorship program, it is essential that the firm pays it forward. By doing so, the firm will not only be creating a brand, it will be creating a legacy in its area of operations. It can also give This study source was downloaded by 100000776675673 from CourseHero.com on 05-11-2021 03:39:58 GMT -05:00 https://www.coursehero.com/file/28425051/Soweto-Golddocydocx/ This study resource was shared via CourseHero.com(Surname)4 back by assimilating young members of the society that meet its employee criteria, thus creating employment while giving hope to individuals in the society that it is okay to succeed and be the best. By doing so, the company would pride itself in not only making quality craft beer, but also creating hope and awareness in its immediate surroundings. In doing so, it would be affecting its public relations, but also establishing individuals by giving them platforms to rise above while making society a better place. 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