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Assignment

  • Course: Integrated Business Strategy
  • Professor: Dr Estelle
  • School: Milpark Business School
Page 1 of 86

Assignment Submission
MODULE
MSM

No assignments will be accepted without this completed coversheet. Student number
Bongiwe Magasela

Mark Allocation:Comments:

TOTAL

Contents

Executive Summary
Given the rich cultural depth of the Castle brand in South Africa, Castle Draught can present a very unique through the line marketing opportunity. There are however Castle brand constraints to overcome and opportunities to leverage.

The constraints that need to be de-emphasized are perceptions related to low cost (cheap) and old-school (not trendy), body-effect (gas and hang over) and taste (the notion that a drinker must first acquire a taste for the beer). This substantially drives away new drinkers in favour of retaining the existing customer base only.

In de-emphasizing the constraints, they must be decisively replaced for Castle Draught with substantial alternative consumer oriented appeal. This repositioning is radical but not without risk, however a mediocre intervention will yield an inevitably mediocre result. To some extent the risk will be mitigated by a trusted and strong underlying mother castle brand. The competition is fierce and the on-going subject of raging debate in drinking circles. Competitor offerings must be taken head-on. Draught such as Heineken and Windhoek enjoys an appeal similar to Coca Cola in its pervasiveness and intensity, and therefore presents a very serious sustainable challenge.

Castle Draught as a variant to Castle Lager has not enjoyed sufficient differentiation in its initial launch. It is proposed that it be re-launched with substantially revised context and stunningly differentiated impact. Accordingly, the “untouchable” assumptions must be revisited within a conservative framework of retaining base brand identity and embedded brand strength, as well as the existing customer base; the proposed alternative appeal are the following Taste (controlled reduction...