Project #80295 - marketing week7.8


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. To assist in this requirement, a good rule of thumb is that each answer should be approximately 200 to 250 words in length.


Chapter 14 International Publicity, Public Relations, and Sales Promotion Strategies 417


Case 14-1 Promoting Coke


in South Africa


Coca-Cola just moved its operating group headquarters


from the United Kingdom to Johannesburg,


South Africa, to be closer to target consumers.


Coca-Cola is the largest consumer goods provider


in Africa. To date, the company has grown through


close collaboration with its bottling and retail partners.


Company headquarters have an aggressive


growth plan for the African continent and for


South Africa in particular: With a large percentage


of the population young and dynamic, this market


should be carefully courted.


As part of its efforts to reach this population,


Coke set up the Coca-Cola Africa Foundation, in


which the company partners with other organizations


to build sustainable communities on the continent.


To reach young South Africans in particular,


the company hired South African artists that would


appeal to this segment of the population to participate


in a remix of the ‘‘I’d Like to Buy the World a


Coke’’ theme song as a musical montage of reggae,


Kwaito, rap, hip-hop, and hard rock. The ad was


part of the ‘‘Coke Side of Life’’ campaign, and


the theme song was so popular that radio stations


added it to their playlists.


South Africa was Coca-Cola’s first stop on the


African continent in 1928. The company set up


the first bottling and distribution plant in Johannesburg


and has expanded its business in the


country ever since, employing more than 10,000


people. The company’s presence in South Africa


created many more jobs in the country: For


every job created by the production and marketing


of Coke products, 10 additional jobs, on average,


were created in South Africa in related




The Coca-Cola Company sells numerous nonalcoholic


brands to South African consumers.


Among them are Coca-Cola (with its Light and


Vanilla Coke versions), Fanta (with its Orange,


Grape, and Pineapple versions), Sprite, Tab, Sparletta,


Lemon Twist, Schweppes, Mixers, Fresca,


Minute Maid, Powerade, Bibo, Milo, Krest,


Splash, Bonaqua, and Vitango. Its product mix


in South Africa is more extensive than in the


United States because, in South Africa, the company


also bought out a number of popular regional




During its time in Africa, Coca-Cola ran a few


successful promotions. First, in 2002, it hired Riverside


Technologies in Wilton, Connecticut, to


provide ideas on technologic modifications that


would set the brand apart. Riverside came up


with modules that could be inserted into the packaging;


these modules would sing and announce


the winner of a Coke promotion. Consumers


who purchased the winning cans were instant winners


of Panasonic stereo equipment. The winning


cans were filled with carbon dioxide and water,


to replicate the weight and feel of a real can, and


were assembled into the Coke can by Schmalbach-


Lubeca Continental Can in Bonn, Germany.


Fifty talking cans were produced for the promotion


and were distributed nationally. In just the


first month of the promotion, sales of Coke cans


rose by 3.2 percent, Diet Coke cans by 18.6 percent,


and Fanta by 3.8 percent compared with


the previous year. This was in line with the


theme of the promotion, ‘‘This summer only


Coca-Cola talks,’’ literally—and figuratively, in


terms of sales.


Since 2002, Coca-Cola did not have many promotions


that had a similar impact. In the spring of


2004, for example, the company coordinated with


its advertising agencies another promotion that


was not as popular with South African consumers.


The promotion asked them to nominate the most


inspiring person they knew to carry the Olympic


Flame in Cape Town. Distributors were unhappy


that they were not involved in the promotion, and


generally, it was felt that a more aggressive and creative


approach was needed to resuscitate Coke


sales again.


In early 2006, Coke hired Conceptualise,


South Africa’s leading promotional marketing


specialist, whose area of expertise is the development


and implementation of promotional competitions


and games. The company developed


the Coca-Cola Mega Millions game for the


South African market, which has captivated


South African consumers. Mega Millions had a


game-show format, and it was broadcast live during


prime time on one of South Africa’s top network


channels, SABC 1. In the game, contestants


interacted live to win cars and large cash prizes.


To enter the game, individuals had to purchase


Coca-Cola carbonated drinks, check the label,


and find out if they won a prize. Their number


also qualified them to enter into a pool of candidates


to become a contestant on the live show—a


contestant was drawn during each show from the


pool of potential contestants. The Mega Millions


game was hugely successful, with 22 million


entries over a 4-month period.


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