2 questions below need to be answered in an APA essay format please do not forget the ABSTRACT. Your answers must include content and cite reference materials where appropriate basically add some fluff and cite work to assist in this requirement and please do not copy the answers exactly. Basically cumulate all the questions and answers into a whole paper. A good rule of thumb is that each answer should be approximately 250 words in length
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.
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.
Answer:Coca-Cola is in a good position in South Africa, because of the positive image that it has created for its target market. It has done this in two ways. First, Coke’s contributions to the local economic and social environment were immense. Their mere presence in South Africa creates jobs and fosters stability. For every job created by the production and marketing of Coke products, 10 additional jobs, on average, were created in related industries. They also give back to the community. Coke set up the Coca-Cola Africa Foundation, in which the company partners with other organizations to build sustainable communities on the continent. These contributions to the economy and to the society have helped Coke to create an image of social responsibility that their customers respect.
The second way that Coke has become so popular in South Africa is through fun endeavors. They hold sweepstakes, contests and game shows, which their consumers appear to enjoy very much. For example, they have launched the Coca-Cola Mega Millions game, which has captivated South African consumers. Mega Millions had a game-show format and it was broadcast live during primetime on one of South Africa’s top network channels. These campaigns have a double effect: They not only make the company appeal to customers and increase its position in the market, but also they also greatly boost company sales. By combining fun and social responsibility, Coke has created a unique image that its consumers find very appealing. This image has enhanced Coke’s position in the market and distinguished Coke from its competitors.
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.
It is preferable that promotions do not particularly target the lower-income consumers, who would purchase Coke instead of products that provide nutrition. It is not the type of promotion that should be the focus of this discussion; rather, it should be the target market for the promotion. The Panasonic Hi-Fi may appeal to the lower-income market disproportionately, so it is not advisable to have this as a prize.
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 industries.
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, Spar-letta, 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 competitors.
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.
Lascu, Dana-Nicoleta. International Marketing, 3rd Edition. Cengage Learning, 02/2008. VitalBook file.
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