Caselet / Scenario
In all your answers give an example of what you mean using the case scenario below. Do not regurgitate or repeat the theory from the textbook or study guide.
BILLIATO – A TASTE OF WEALTH
Billiato Ultra-premium was launched in the South African market in November 2021 by Refiloe Maela Phoolo known by his stage name Cassper Nyovest. It was launched at a private launch in Cassper Nyovest’s yearly all white party.
Billiato is an easy flavoured drink that is nothing like a Vodka or Gin but a Tequila. It is something people can easily drink. According to the founder “it is one of a kind shooter”. He also stated that through this drink ordinary people will have an idea of what wealth tastes like. The name was taken from the word billion and taken from culture in a South African township called Vaal.
Billiato is produced and bottled in South Africa. It is a 750ml bottle with 35% alcohol. It is sold at major retail stores in South Africa, namely Makro, Pick n Pay, Checkers, TOPS at SPAR, Johnny’s Liquor and in well-known establishments such as Konka. Konka is a vast and unique facility that has made the establishment very successful in catering for national and international clients.
Billiato retails for R299.99 – R339.00 depending on the retail store and current specials being run at that time.
About the founder of Billiato Ultra-premium alcohol
Cassper Nyovest is the South African hip-hop artist, song writer, entrepreneur and record producer. He is the founder of family tree records, and he uses this record company to empower talented individuals from South Africa. He has won many awards. He is also the founder of footwear brand – Root of Fame and the new alcohol
brand – Don Billiato. He has over 6 million followers. He is also known for the Fill-up events; boxing celeb matches he has done over the years.
The Billiato brand is currently marketed mostly by the owner on his social media pages (Facebook, Twitter, Instagram etc.) and retailed at all his major events such as annual all white party, boxing matches, fill-up events etc.
The owner recently confirmed that it is the 8th selling liquor in South Africa.
Billiato’s competitors include:
Olmega priced at around R299.99 Jose Cuervo priced at around R329.99
Eljimador Reposado priced at around R349 99
Examples of Billiato owner post about the Billiato brand
“Both businesses are doing well & are already making profit which is so encouraging cause I haven’t even been trading for a year. The potential is immense, and I can’t wait to express all these ideas that I have. The support my people have given me is overwhelming. Thank you all!
Question 1 (10)
Select and explain five (5) most appropriate macro (external) environment factors that directly affect Billiato. (10)
2 marks will be allocated per explanation of each macro environment factor. Discuss two points per macro environment factor = 10 marks.
Question 2 (20)
The owner of Billiato shared the company’s five-year objective which includes increasing the market share by 2% each year. To realise this objective, you have been requested to prepare a strategy. Your strategy needs to focus on the market segmentation, targeting and the positioning strategy. To complete this task, answer the following questions:
Identify two (2) market segments (target audiences) for Billiato (1 mark each). Note
– do not confuse segments with segmentation variables – the latter refers to demographics, psychographics etc. (2)
2 mark allocated for the motivation of each selected segment = 2 marks.
Using demographics, lifestyle and behavioural segmentation variables – develop a profile for the two segments identified in Question 2.1. (12)
6 marks allocated per segment which consists of 2 marks per market segmentation variable = 12 marks.
Explain three (3) positioning methods that Billiato can use (2 marks each). (6)
2 marks per positioning method (discuss 2 points per positioning method) = 6 marks.
Question 3 (10)
There are five (5) gaps that exist between consumption and production. Apply the five
(5) gaps to the Billiato case study. (2 marks each). (10)
1 mark will be allocated per discussion of each gap. Discuss two points per gap = 10 marks.
Question 4 (5)
The Billiato brand turned two years old in November 2022. In order to celebrate this milestone, the owner of Billiato requested that you to conduct the research to understand customer satisfaction with the product and to obtain suggested improvements. The owner plans to use the feedback in the next product action, i.e. the birthday limited edition.
Explain which data research design you will use. (1)
1 mark will be allocated per discussion of the data research design = 1 mark
Assume that Billiato has a list of loyal consumers. Discuss the four (4) probability sampling methods that you will use to conduct the research. (4)
1 mark will be allocated per discussion of the sampling method = 4 marks.
Question 5 (20)
The owner of Billiato explained the importance of packaging to succeed in his business. Discuss any three (3) types of packaging that Billiato can use as part of the marketing strategy.(6)
2 marks per type of packaging (discuss 2 points per type) = 6 marks.
The first two years of the Billiato brand have proven to be very successful. In order to remain competitive and to increase sales, the owner is studying the possibility of adding an additional product line. Discuss the process that Billiato should follow in order to develop an additional product line (2 marks each). (14)
2 marks per step (discuss 2 points for each step) = 14 marks.
Question 6 (10)
According to the owner of Billiato, the brand is now sitting 8th in terms of selling liquor in South Africa. The owner of Billiato is driven to move to 5th place before the end of 2024 and he is considering pricing as one strategy to implement in order to achieve this objective. Discuss and motivate any price adjustments that can be considered to support this objective. (10)
2 marks per price adjustment (discuss 2 points for each price adjustment) = 10 marks.
Answers to Above Questions on Fundamentals of Marketing
Answer 1: Macro environmental factors have a direct level of impact on the performance of an organisation. In the given case scenario of Billiato, it is evaluated that there are different macro environmental factors that directly influence the performance of the organisation. For example, the economic factors in the form of fluctuations in the disposable income affect the business of Billiato in a direct way because it provides luxury goods which might not be within the budget of people because of fluctuation in the disposal income.
Get completed answers on the above questions on fundamentals of marketing as provided by the Student Life Saviour South Africa experts.
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