Case Study: Promoting Coke in South Africa

Multinational corporations must work hard to maintain a positive public image. While these organizations stand to greatly benefit from existing technology, capabilities, and economies of scale, they are frequently challenged in their efforts to enter new markets. Consumers are frequently skeptical of change and may harbor some hostility towards large multinational organizations. As Coca Cola has expanded its brand around the world, it has worked hard to be creative in its marketing while maintaining a positive public image. The success of Coke in Africa is a direct result of the company’s ability to embrace and support the unique culture of the many regions around the continent.

Understanding that their image as an American business juggernaut might be met with some resistance, Coca Cola has worked hard to maintain positive publicity in Africa. According to Lascu (2008), “Companies use public relations, supporting their local community and community events to create positive publicity for their brands” (p. 400). In an effort to appeal to the target consumer while enhancing its public image, Coke developed the Coca-Cola Africa Foundation. According to The Coca Cola Company (2008), “The foundation addresses individual and collective needs across issues of health, education and the environment, as well as supporting subject-matter expert development. In short, it is a clear reaffirmation of The Coca-Cola Company's belief in, and long-term commitment to Africa.” By developing this foundation, Coke has demonstrated its commitment to the community and has favorably positioned itself within its target groups. Having positioned itself as a company that cares about the community, Coke has experienced rapid adoption by what might have otherwise been a reluctant market. This success is indicative of the value of maintaining a positive corporate image.

As Coke developed its marketing strategies within Africa, it worked hard to focus on a modular strategy. As a well-known multinational corporation, Coca-Cola had much to gain from utilizing its existing marketing material and strategies. Having identified its target group as young South Africans, Coke leveraged its “Coke Side of Life” campaign to appeal to local tastes. This ability to utilize existing strategies while understanding local trends has proved particularly successful. In addition to utilizing its own marketing teams, Coke has successfully aligned with many partners. In 2002, Coke partnered with Riverside Technologies to create Instant Win cans. According to Instant Win Innovations (2009), “The company currently maintains a long-standing relationship with The Coca-Cola Company, which owns licensing rights to several of our patented “Instant Win!” products.” This marketing campaign further enhanced Coke’s position as a leader in the carbonated beverage industry in Africa.

Coca-Cola, as a rapidly expanding multinational corporation, has worked hard to maintain and enhance its public image. Utilizing public outreach programs, Coke has been largely successful in this endeavor. As corporations move into new and untested markets, it is essential that they consider their public image. Coca-Cola has experienced overwhelming success in Africa due to the combination of this appeal and it consistent and creative marketing campaigns.


References

Lascu, Dana-Nicoleta. 2008. International Marketing (3rd ed.). Mason, OH:
Cengage Learning.

Instant Win Innovations. 2009. About Us. On-line. Available from Internet
http://www.talkingcan.com/About.aspx. accessed 16 April 2009.

The Coca Cola Company. 2008. Regional and Local Foundations. On-line. Available from
Internet http://www.thecoca-colacompany.com/citizenship/foundation_local.html, accessed 16 April 2009.