ASSIGNMENT | Promoting Coke in South Africa

Read Case Study 14-1: Promoting Coke in South Africa and answer the following questions in an essay format.
1. Evaluate Coke’s market position in South Africa relative to other competitors and other businesses.
2. Evaluate the different types of consumer promotions used in South Africa to increase sales for Coca-Cola South Africa. Are there any types of sales promotions that should not have been used in a country characterized by a wealth gap, with a substantial proportion of the population below the poverty line? Explain.
Your answers must include content and cite reference materials where appropriate. Deliverable length is 2 body pages minimum.
**Please use Lascu, D. N. (2008) International Marketing, 3e, 3rd Edition. Cengage Learning, as the primary reference.

SAMPLE SOLUTION

Promoting Coke in South Africa, Case Analysis
Evaluation of Coke’s market position in South Africa
Coca Cola company is the market leader in the production and distribution of soft drinks and operates in at least 200 countries around the globe. The company has strong brand recognition and sells a variety of still and sparkling beverages. It generates more than 60% of its total revenue and about 85% of its operating income from outside the USA (Lascu, 2008). Coca-Cola has been a dominant company in South Africa and remains in a good position because of the positive reputation it has created for its target consumers. This has been achieved in two main ways.
First, the company contributed greatly to the political, social, economic and environmental growth of the country since its market entry in the 1920s. Its presence led to the creation of employment, economic growth and fostering stability. According to Lascu (2008), for one job that emanated from production and marketing of the company’s products, ten more jobs are created in other related industries (Lascu, 2008). The company also contributed to the society through Coca-Cola Africa Foundation where it partnered with other organizations to create a sustainable community within Africa. These…