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ABSTRACT

Marketing planning

wadzanai mutero
HOW CAN COCA COLA Business Administration

INCREASE ITS MARKET


SHARE IN SOUTH AFRICA
BY USING MARKETING
STRATEGIES
Marketing Mix for CCBSArketing Mix for CCBSA
Marketing planning 1

HOW CAN COCA COLA INCREASE ITS MARKET SHARE IN SOUTH AFRICA BY USING MARKETING
STRATEGIES

WADZANAI MUTERO

Business Administration

At

Shanghai Lixin University of Accounting and Finance

Professor/Instructor

Ms. NELLY ZHU

Final Thesis

Final Thesis

Title/论文题目 : HOW CAN COCA COLA INCREASE ITS MARKET SHARE IN SOUTH AFRICA BY
USING MARKETING STRATEGIES

Major/专业: BUSINESS ADMINISTRATION

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Marketing planning 2

Name/姓名: WADZANAI MUTERO

Student No./学号: 2017178038

Supervisor/指导老师:ZHU HANHUA

School of Business Administration


2021.04

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Marketing planning 3

Marketing has been the driving force of Coca Cola. From inscriptions on mountains to the little ads on our little screens, for
sure they have done it all but after we done with all that we still need to analyze our plans and strategies and solve the issues
arising from them. A soft drink giant, Coca Cola, is one such example which has been so aggressive in the market making most
of these aspects since 1886. South Africa not only is it Africa’s Biggest economy, Coke is also South Africa’s most admired brand
name, CCBSA. Johannesburg’s up class shopping malls provide the coke drink for free. CCBSA changes its taglines and this has
been on of the most unique attributes or features of the Organization. This makes the audience target feel that the company is
doing some innovation and it also kps them interested. With all this great marketing plans and strategies, ‘What can Coca Cola
in South Africa do to increase its global market share. How Can Coca Cola achieve that? What methods can be used to achieve
this goal.
KEYWORDS : Marketing Planning, Strategy, Coca Cola, Brand, Marketing budget

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Marketing planning 4

Executive Summary

Marketing has been the driving force of Coca Cola. From inscriptions on mountains to the little ads on our little screens, for
sure they have done it all but after we done with all that we still need to analyze our plans and strategies and solve the issues
arising from them. A soft drink giant, Coca Cola, is one such example which has been so aggressive in the market making most
of these aspects since 1886. South Africa not only is it Africa’s Biggest economy, Coke is also South Africa’s most admired brand
name, CCBSA. Johannesburg’s up class shopping malls provide the coke drink for free. CCBSA changes its taglines and this has
been of the most unique attributes or features of the Organization. This makes the audience target feel that the company is
doing some innovation and it also keeps them interested. With all this great marketing plans and strategies, ‘What can Coca
Cola in South Africa do to increase its global market share. How Can Coca Cola achieve that? What methods can be used to
achieve this goal.

In my research and findings, I have come to a conclusion that, every organization is trying by all means to increase its market
share day in day out, no matter how big or small the organization may be. In the case of Coca Cola in South Africa, how can this
be achieved? The answer will be, by trying to increase the sales and revenue of Coca Cola. When sales and revenue are
increased, the market share also increases because of the direct relationship between these two. The main goal for this project
is to come with a plan on how best we can increase the market share of CCBSA by the year end 2021. A lot was considered.
Since this is an African country, that meant gathering of data is something that was obviously going to be a challenge,
considering the fact that a lot of African countries like to keep their business private. So, when it comes to information even if
the business has gone public, they are not willing to release or share it. In the end we found out the goal was attainable. CCBSA
marketing strategy has been doing really good despite the last year condition and still thriving to do better and that’s the party
we really want to address. Marketing Mix indeed is one of the top marketing strategies and fits well in the manufacturing
industry. Will be looking at the 4Ps of marketing mix and how they can affect market share of CCBSA. With the good application
of this strategy and a good implementation of the action program, Coca Cola’s market share could increase by 6% this year and
1.5% quarterly.

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Marketing planning 5

CONTENTS

Part 1.................................................................................................................................................................................................................. 3
Introduction........................................................................................................................................................................................................ 3
1.1 Brief Company’s History........................................................................................................................................................................... 3
1.2 Problem Statement.................................................................................................................................................................................. 3
1.3 Demarcation ............................................................................................................................................................................................ 4
1.4 Methodology............................................................................................................................................................................................ 4
PART.2................................................................................................................................................................................................................ 6
Analysis on the marketing environment.............................................................................................................................................................6
Market Analysis.............................................................................................................................................................................................. 6
2.1 Exernal environment--Micro-level............................................................................................................................................................6
2.2 External environment—Macro-level (THE PESTLE ANALYSIS ) ..........................................................................................................10
2.2.1 POLITICAL ........................................................................................................................................................................................ 10
2.2.2 ECONOMICAL .................................................................................................................................................................................. 11
2.2.3 SOCIAL .............................................................................................................................................................................................. 11
2.24 TECHNOLOGY ................................................................................................................................................................................... 12
2.2.5 LEGAL ................................................................................................................................................................................................ 12
2.2.6 ENVIRONMENT ...............................................................................................................................................................................12
2.3 Internal Environment analysis................................................................................................................................................................ 13
2.4 Swot Analysis.......................................................................................................................................................................................... 13
Part 3................................................................................................................................................................................................................ 16
Suggested marketing strategy..........................................................................................................................................................................16
3.1 Marketing Objectives.............................................................................................................................................................................. 16
3.2 STP STRATEGY............................................................................................................................................................................................. 16
3.2.1 SEGMANTAION.................................................................................................................................................................................... 16
3.2.2 Target Market...................................................................................................................................................................................... 16
3.2.3 Positioning........................................................................................................................................................................................... 16
3.3 Marketing Mix............................................................................................................................................................................................ 17
The (four) 4Ps............................................................................................................................................................................................... 17
3.3.1 The Product strategy........................................................................................................................................................................... 17
3.3.2 Price strategy....................................................................................................................................................................................... 18
3.3.3 Place and Physical Distribution............................................................................................................................................................18
3.3.4 Promotion............................................................................................................................................................................................ 19
People........................................................................................................................................................................................................... 20
PROCESS....................................................................................................................................................................................................... 20
Part 4. Action program..................................................................................................................................................................................... 21
Part5. Control................................................................................................................................................................................................... 23
Bibliography..................................................................................................................................................................................................... 29
Appendix.......................................................................................................................................................................................................... 30
Error! Hyperlink reference not valid.Abstract..................................................................................................................................................................

Error! Hyperlink reference not valid.Executive Summary............................................................................................................................................

Error! Hyperlink reference not valid.Brief Company’s History.....................................................................................................................................

Error! Hyperlink reference not valid.1.......................................................................................................................................................................Part


4

Error! Hyperlink reference not valid.Introduction...........................................................................................................................................................

Error! Hyperlink reference not valid.Problem Statement............................................................................................................................................

Error! Hyperlink reference not valid.Demarcation ......................................................................................................................................................

Error! Hyperlink reference not valid.Methodology......................................................................................................................................................

Error! Hyperlink reference not valid.2 PART.2.................................................................................................................................................................

Error! Hyperlink reference not valid.Analysis on the marketing environment...............................................................................................................

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Marketing planning 6

Error! Hyperlink reference not valid.Market Analysis..................................................................................................................................................

Error! Hyperlink reference not valid.Exernal environment..........................................................................................................................................

Error! Hyperlink reference not valid.THE PESTLE ANALYSIS OF COCA COLA .......................................................................................................

Error! Hyperlink reference not valid.POLITICAL .........................................................................................................................................................

Error! Hyperlink reference not valid.ECONOMICAL ...................................................................................................................................................

Error! Hyperlink reference not valid.SOCIAL ...............................................................................................................................................................

Error! Hyperlink reference not valid.TECHNOLOGY ...................................................................................................................................................

Error! Hyperlink reference not valid.LEGAL ................................................................................................................................................................

Error! Hyperlink reference not valid.ENVIRONMENT ................................................................................................................................................

Error! Hyperlink reference not valid.Internal Environment analysis...........................................................................................................................

Error! Hyperlink reference not valid.Swot Analysis......................................................................................................................................................

Error! Hyperlink reference not valid.Part3......................................................................................................................................................................

Error! Hyperlink reference not valid.Suggested marketing strategy...............................................................................................................................

Error! Hyperlink reference not valid.Marketing Objectives.........................................................................................................................................

Error! Hyperlink reference not valid.STP STRATEGY........................................................................................................................................................

Error! Hyperlink reference not valid.SEGMANTAION..................................................................................................................................................

Error! Hyperlink reference not valid.Target Market....................................................................................................................................................

Error! Hyperlink reference not valid.Positioning..........................................................................................................................................................

Error! Hyperlink reference not valid.Marketing Mix........................................................................................................................................................

Error! Hyperlink reference not valid.The (four) 4Ps

Elements of Marketing Mix


Physical
Product Price Distribution Promotion

........................................................................................................................................................................................................................................

Error! Hyperlink reference not valid.The Product strategy..........................................................................................................................................

Error! Hyperlink reference not valid.Price strategy.....................................................................................................................................................

Error! Hyperlink reference not valid.Place and Physical Distribution..........................................................................................................................

Error! Hyperlink reference not valid.Promotion..........................................................................................................................................................

Error! Hyperlink reference not valid.Part 4. Action program..........................................................................................................................................

Error! Hyperlink reference not valid.Part5. Control........................................................................................................................................................

Error! Hyperlink reference not valid.Bibliography...........................................................................................................................................................

Error! Hyperlink reference not valid.Appendix................................................................................................................................................................

EXECUTIVE SUMMARY

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Marketing planning 7

In my research and findings, I have come to a conclusion that, every organization is trying by all means to increase its market
share day in day out, no matter how big or small the organization may be. One may ask how? The answer will be, by trying to
increase their sales and revenue. The main goal for this project is to come with a plan on how best we can increase the market
share of CCBSA by the year end 2021. A lot was considered. Since this is an African country, that meant gathering of data is
something that was obviously going to be a challenge, considering the fact that a lot of African countries like to keep their
business private when it comes to information even if the business has gone public. In the end we found out the goal was
attainable. CCBSA marketing strategy has been doing really good despite the last year condition and still thriving to do better
and that’s the party we really want to address. Marketing Mix indeed is one of the top marketing strategies and fits well in the
manufacturing industry. Will be looking at the 4Ps of marketing mix and how they can affect market share of CCBSA.

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Marketing planning 8

BRIEF COMPANY’S HISTORY

Coca Cola was created or invented by a man called Doctor John Pemberton in May, 1886. He was a pharmacist from Georgia
Atlanta. The name Coca Cola came to him a suggestion given the Doctor from his bookkeeper Frank Robinson. Frank was also
good with his penmanship, he was excellent, since he was a bookkeeper. He was the one who first wrote the name in that
order and with those letters and it stuck until today, what a trademark. The first soft drink to have ever been sold was publicly,
was sold May 8 1886. This was in Atlanta at the soda fountain in Jacob’s Pharmacy. They managed to sell about 9 bottle of the
drink each day and the first year’s sales rounded up to $50, what a year for the company. In 1887 Asa Candler bought Coca Cola
formula from John for $2,300 and 1890 and became America’s most loved and popular drink. Due to Cabdler’s aggressive
marketing, the Coca Cola company syrup sales increased by 4000% between 1890 to 1900. As of today, daily consumption is
more than 1(one) billion per day of the Coca Cola company.

But how successful has it been in South Africa?

On July the 4th 2016 Coca Cola Company, SABMiller plc world’s second largest bottler Company in the world and the South
African Gutsche Family investments, came together to for what is known as CCBA Coca Cola Beverages Africa with its
Headquarters in Johannesburg South Africa which is also the home of Coca Cola Beverages South Africa CCBSA, Coca Cola
SABCO in Port Elizabeth with the Gutsche Family owning 80% of the shares. CCBA has set to be one of the top producers in
Africa catering for the 40% production of the product in the Continent. These countries include Namibia, Uganda, Kenya,
Ethiopia, Tanzania, Mozambique, Mayotte, Ghana, Nigeria, Botswana, Zambia, Swaziland, Comoros and South Africa. Our main
focus is the CCBSA in South Africa which has been in production since 1940, one of the first Coca Cola Companies in Africa Coca
Cola SABCO

PART 1.
INTRODUCTION

1.1 BRIEF COMPANY’S HISTORY

Coca Cola was created or invented by a man called Doctor John Pemberton in May, 1886. He was a pharmacist from Georgia
Atlanta. The name Coca Cola came to him a suggestion given the Doctor from his bookkeeper Frank Robinson. Frank was also
good with his penmanship, he was excellent, since he was a bookkeeper. He was the one who first wrote the name in that
order and with those letters and it stuck until today, what a trademark. The first soft drink to have ever been sold was publicly,
was sold May 8 1886. This was in Atlanta at the soda fountain in Jacob’s Pharmacy. They managed to sell about 9 bottle of the
drink each day and the first year’s sales rounded up to $50, what a year for the company. In 1887 Asa Candler bought Coca Cola
formula from John for $2,300 and 1890 and became America’s most loved and popular drink. Due to Cabdler’s aggressive
marketing, the Coca Cola company syrup sales increased by 4000% between 1890 to 1900. As of today, daily consumption is
more than 1(one) billion per day of the Coca Cola company.

But how successful has it been in South Africa?

1940 The Giant is established in South Africa. Then things turn around and Coca Cola left South Africa in the mid-1980s.The
major reason was because of the criticism they faced due to the ongoing apartheid going on at that time. Pepsi also left the
country. But I think Coca Cola was clever enough to come up with a strategy. Coca Cola sold its bottling and distribution
interests to a BLACK OWNED company Gutsche Family. This became the first black owned soft drink bottler across the
continent and the world perhaps. On July the 4th 2016 Coca Cola Company, SABMiller plc world’s second largest bottler
Company in the world and the South African Gutsche Family investments, came together to for what is known as CCBA Coca
Cola Beverages Africa with its Headquarters in Johannesburg South Africa which is also the home of Coca Cola Beverages South
Africa CCBSA, Coca Cola SABCO in Port Elizabeth with the Gutsche Family owning 80% of the shares. CCBA has set to be one of

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Marketing planning 9

the top producers in Africa catering for the 40% production of the product in the Continent. These countries include Namibia,
Uganda, Kenya, Ethiopia, Tanzania, Mozambique, Mayotte, Ghana, Nigeria, Botswana, Zambia, Swaziland, Comoros and South
Africa. Our main focus is the CCBSA in South Africa which has been in production since 1940, one of the first Coca Cola
Companies in Africa Coca Cola SABCO

Why is Market Planning needed?

Coca Cola is expanding daily especial into the African market. This raises a lot of marketing issues. Marketing strategies that
work in COCA COLA America or Asia, might not really be compatible with the African market. Its market share in South Africa
has dropped significantly from 81% in the late 90s to approximately 49% currently. Coca Cola’s greatest competitor and arch
rival in the soft drink industry, is really making efforts to surpass the giant. It is venturing into new markets that Coca Cola has
not yet started to venture into, giving PepsiCo an upper hand over this Coca Cola. This then raises a need to come up with a
marketing plan that suits well the African market and is able to see the organization’s goals in these areas to fruition. All
relevant teams in the organization should refer to the marketing plan. In this paper we will come up with a marketing plan
for CCBSA, that will help the company in achieving a better market share in this industry in South Africa.

1.2 PROBLEM STATEMENT

Every organization no matter how good it is doing in the market or individual success, all face one problem. This is to
increase the market share since rivals and competitors, the game changers are always coming, and also find a good suitable
marketing strategy for the Organization. Also, in CCBSA, there has been a decline in the consumption of sugary drinks by
Coca Cola in South Africa. The main reason being people are now awakened to health factors and how taking these drinks
affect their health. This among other reasons has resulted in a decline in the market share of Coca Cola in South Africa even
though the company has made efforts in coming up with solutions to the concerns. Now a question arises….

How can Coca Cola increase its market share by the end of 2021 in the South Africa by adapting its Marketing Strategies?
With the help of a good marketing plan Coca Cola will achieve this Goal.

Sub-questions; 1. What has CCBSA done to deal with the health issues and concerns surrounding the big giant?

1. What is the suggestion marketing plan for South Africa?

1.3 DEMARCATION

In this research paper we are mainly going to focus on South Africa, the marketing plan of Coca Cola South Africa is now the
heart of development in Africa and because of its great economy fast development that’s what makes it more interesting to
look at Coca Cola Beverages South Africa as it is sometimes likes to the Coca Cola NY.

We will also look at the market environment of the company. We will go through every process (PESTEL, SWOT ANALYSIS
and Interviews) and evaluations in trying to come up with a marketing plan for our case company.

1.4 METHODOLOGY

 Analysis on the marketing environment to analyze our problem (SWOT, PESTLE)

Swot & Pestle: these are analysis tools that allows us to identify all factors that can affect the marketing activities and
therefore allows us to compile and compare completely different types of data and purposes. These two helps us prepare
and plan more effectively. It becomes easier to achieve goals using these two.

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Marketing planning 10

Swot: SWOT (qualities, shortcomings, openings, and dangers) investigation is a system used to assess an organization's serious
position and to create vital arranging. SWOT investigation evaluates interior and outside factors, just as current and future
potential.

A SWOT analysis is intended to work with a sensible, certainty based, information driven gander at the qualities and
shortcomings of an association, activities, or inside its industry. The association needs to keep the examination exact by staying
away from pre-considered convictions or ill-defined situations and rather zeroing in on genuine settings. Organizations should
utilize it as a guide and not really as a remedy.

Some keys:

 SWOT analysis is an essential arranging strategy that gives appraisal instruments.


 Recognizing center qualities, shortcomings, openings, and dangers prompts certainty-based examination, new
viewpoints, and groundbreaking thoughts.
 SWOT investigation works best when assorted gatherings or voices inside an association are allowed to give practical
information focuses instead of endorsed informing.

Strengths: Strengths depict what an association dominates at and which isolates it from the opposition: a solid brand, steadfast
client base, a solid asset report, novel innovation, etc. For instance, a speculative stock investment may have built up an
exclusive exchanging system that profits market-beating results. It should then conclude how to utilize those outcomes to pull
in new financial backers.

Weaknesses: weaknesses anticipate an affiliation from performing at its perfect level. They are domains where


the commerce must progress to remain genuine: a weak brand, higher-than-normal turnover, critical degrees of commitment,
a lacking store organization, or lack of capital.

Opportunities: Opportunities allude to great outside factors that could give an association an upper hand. For instance, if a
nation cuts taxes, a vehicle maker can trade its vehicles into another market, expanding deals and piece of the pie.

Threats: threats imply components that can conceivably harm an affiliation. For occasion, a dry spell could be a threat to a
wheat-creating organization, because it might demolish or reduce the gather surrender. Other essential perils consolidate
things like expanding costs for materials, extending competition, tight work supply. etc.

Pestle: pestle analysis (political, economic, social and technological, legal, environmental) is an administration strategy
whereby an association can survey significant outside factors that impact its activity to turn out to be more serious on the
lookout. As depicted by the abbreviation, those four territories are vital to this model.

It is accepted that pestle analysis was first presented under the name ETPS by Harvard educator Francis J. Aguilar. In the 1967
distribution "Checking the Business Climate," Aguilar introduced the financial, specialized, political, and social factors as being
significant effects on the business climate. Along these lines, the letters were revamped to make a helpful and eccentric
abbreviation utilized today.

Suggested marketing strategy to try and solve the marketing problem (STP, MARKETING MIX)

STP: this stands for Segmentation, Targeting, and Positioning. The STP strategies helps marketers making/creating their
messaging and also be able to develop and deliver their tailored relevant message or information that engage segmented,
targeted audiences. It helps us define the market, create audience segments and definitely construct segment profiles. It is
one of the most effective and commonly used marketing models of today.

Marketing Mix: this is a strategy that has been created after carefully taking into consideration the major 4P’s of marketing;
product, price, place and promotion. Basically, it's called the 4Ps framework marketing mix, and now it's expanded to 7Ps.
They are locations, people, and processes. Some companies also use 4C frameworks. An effective marketing mix can
determine the choice of the target customer group and the customer or the customer's needs at the product or service level.

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Marketing planning 11

 Using self-report, observation, interviews, focus groups in our data collection

To come up with a better way of understanding the company’s market and be able to produce a better solution or
suggestion, a thorough research was done on the company’s market. Interviews their customers were carried out. Analytical
tools were also used to be able to come up an evaluation on the findings so that in the end a better response to the
company can be created. The main for all this primary research is to understand the situation of the company and also see
how best we can approach whatever marketing issue that we found.

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Marketing planning 12

2 PART.2

ANALYSIS ON THE MARKETING ENVIRONMENT

MARKET ANALYSIS

We are going to analyze our market to have a better understanding of what is going on in the market and also what we can do
to get the best results. This is when we do a qualitative and quantitative analysis / study / assessment of the market. Market
analysis looks at various market segments, competition, customer buying pattens, economic environment and also the market
size. This will give us the bigger picture or a well investigate and informed picture of the CCBSA market. This analysis has a lot
of components that include the industry’s outlook, behavior, effect of the environment on the industry.

2.1 EXERNAL ENVIRONMENT- - M I CRO ICEO -LEVEL

External environments are the actions, events or forces outside an organization that have the power to influence or affect
the company.

Actually, there are two types of environments that can affect the Coke Company; specific environment and general
environment but in this part, I am just going to talk about the specific environment.

This includes the competitors, customers, suppliers, advocacy groups and industry regulations. These, if are not handled well
can have negative impact on the Coca Cola market share in South Africa.

2.1.1 Market size

Market Share 1994

14%
5%
Coca Cola
Pepsi. Co
Others

81%

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Marketing planning 13

Market Share 2010

PepsiCO inc
Tiger Brands Ltd
6%
9%

Coca Cola
Coca Cola
50% Other
Tiger Brands Ltd
Other
35% PepsiCO inc

Figure 2.1…..…. (Figure’s Namemarket share of the soft drink industry )

The statistic above shows the market share of the soft drinks’ companies in South Africa (2010)

Market Share 2020

45 47.3
43% Coca Cola
46% PepsiCo
Tiger Brands Ltd
Others

6.5 4.7
6% 5%

Figurre 2.2 …

Coca Cola used to dominate going backwards and even though they still control much of the industry but the gap is being
closed down pretty fast and soon they it might just be history looking at how the world of business is quickly changing. This is a
proof that most of this small companies are catching up and some are actually surpassing the giant in terms of growth. As we
can see that the company’s market share has dropped significantly and that is a raise for some concerns. CCBSA’s market
share has been going down over the past years and especially 2020. Some could be asking why? Well, it’s almost obvious. One
reason that could be given is the pandemic that has been affection a lot of businesses not just in South Africa but, the whole
world at large. Their biggest plant in Johannesburg was shut down after an employee tested positive and during that they
weren’t any vaccines produced. This giant is more associated with outdoor fun they aren’t any one food place store or
restaurant that doesn’t serve Coca Cola products and also this means that with most of these place’s shutdown, not so much
business was being done and very few people were ordering online. This definitely affected sales and contributed also to the
fall of the market share.

While people are at home, they have more time to read and investigate some of the products they consume and also investing
more into their health forcing people to take precautionary measures regarding their health.

2.1.2 Competitor

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Marketing planning 14

Coca-Cola has been a success for extra than a hundred and twenty years. In contrast, PepsiCo (founded at roughly the identical
time) did not grow to be a serious competitor till after World War II, when it came up with the idea to sell its product in large
parts for the equal price as Coke. The “cola wars” picked up pace in the mid-1960s and have now not abated since. Today the
two American corporations wage struggle principally on worldwide fronts. While the combat on occasion grows ugly, with
accusations of anticompetitive behavior, typically the two companies remain civil. Only once in the history of their competition,
supermarket income of Pepsi overtook Coke’s grocery store sales in 1979. It wasn’t until early 2006, however, that PepsiCo
loved a market fee greater than Coca-Cola. Pepsi’s approach of focusing on snack foods and innovative approaches in the non-
cola beverage market has helped the organization obtain market share and surpass Coca-Cola in common performance. During
the 2008–2009 recession PepsiCo’s diversification strategy endured to pay off, which helped grow the company into the largest
snack-maker ever to be experienced in the world at that time. Also on the other side, a lot of traders were concerned about the
issue of Coca Cola depending much on having a sturdy currency and its international sales. The long-term prospects really had
to be concerned of this. Because PepsiCo does 60 percentage of its enterprise in North America, a strong dollar does not
adversely have an effect on the agency as a good deal as it does Coca-Cola. These factors may additionally give PepsiCo more of
an upper hand over Coca-Cola in the future.

A similar situation has also happened in South Africa

Coca-Cola and PepsiCo had lengthy journey in South Africa via the mid1990s. And, as was the fashion of the early and center
phase of the twentieth century, neither organization initially seemed unduly concerned that their earnings have been
constructed on a system of institutionalized racism and segregation. As used to be the case in later eras, public cognizance
campaigns in United States ultimately influenced PepsiCo, then Coca-Cola, to well-known and tackle the plight of their black
African workers. Robert Woodruff shaped the Coca-Cola Export Company in 1930 and the business enterprise entered that
market the equal year. Over the subsequent two decades, the company progressively moved upward and across the continent,
in particular after World War II. Coca-Cola—along with PepsiCo and other multinational companies (MNCs)—found
extraordinary success in South Africa, chiefly due to the fact of the political and financial realities of the country. The system,
which would come to be known as apartheid many years later, did actually produce a lot of opportunities. It created cheap and
politically forced labor in the South African non-white population or the largely the black community of the nation. Supposed
that all MNCs may want to legally pay their people equivalently less than America, leading to exaggerated prices of return in
contrast to different markets.

Thanks to this notable fee benefit and their already large global appeal, Coca-Cola quickly dominated income and market
presence in South Africa. Coca-Cola’s supremacy in the world smooth drink industry did not advance by means of chance. The
strategic planning and big advertising campaigns continually proved profitable for the big giant. The model was the same also
in South Africa. The organization also managed to penetrate the local, that includes the Afrikaans-dominated-areas. The main
idea was to make the product more appealing and like by the South African societies. In 1948 when PepsiCo arrived and the
same also being the year which the Nationalists taker over and institutionalized apartheid. At that time Coca-Cola was the most
important sponsor of the competition. It did the sponsoring of Cadet Band Competition that was held in Johannesburg and
provided the solely bever-age for sale there. The presence of PepsiCo brought on South African Coca-Cola journalist J. H. Smit
to remind administrators in South Africa and in Atlanta that the ‘‘special exercises market’’ displayed a special opportunity for
Coca-Cola to ‘‘become related with all community work out ... .’’Insider distributions like Coca-Cola Abroad show neighborhood

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Marketing planning 15

Coca-Cola bottlers securing ‘‘sampling tests’’ at neighborhood all-white schools in Cape Town and sponsoring—and winning—a
whites-only go with the stream within the yearly Jacaranda Celebration in Pretoria. Coca-Cola’s greatest and most sizeable
sponsorship, though, happened in December 1949 at the dedication of the Voortrekker Monument. Coca-Cola additionally had
a sturdy presence in nonwhite South Africa, advertising and marketing in white, black, and colored sections of all main cities,
and many smaller ones, as well.

Although Coca-Cola did nothing to protest the240 C. T. Moses and D. Vest racial discrimination and segregation laws set just
waiting to be passed and put into place by the help of the Afrikaans government at that time. This also caused a boycott in USA
its home nation. Ultimately spurred the company to take an extra aggressive stance on social problems in South Africa.
PepsiCo’s foray into South Africa started in 1948, nearly two decades after Coca-Cola’s was once there. Coca-Cola trailing in
national income at some point of its existence, PepsiCo observed itself in a familiar area in this venture: having to face a very
difficult challenge in opposition to its greatest competitor. The cost of opening factories in South Africa these days, because of
it, PepsiCo used the available local bottling companies to assist in the distribution of its soft drinks, reducing profits. The late of
1950s, corporation C.E.O Alfred Steele extended all its bottling operations into South African territory, taking his famous
celebrity wife, film-actress Joan Crawford, to help market the company's presence and dedication to the region. By the
following decade, PepsiCo’s territory in South Africa, and the complete continent, seemed secure, albeit no longer as robust as
Coca-Cola’s. However, in1960 PepsiCo helped to sponsor a tour that sent Jazz amazing Louis Armstrong on a tour of
neighboring Rhodesia. By the cease of the 1960s, Coca-Cola had37 bottling flora in South Africa, far eclipsing PepsiCo. It was
once in the beginning expected as the prototype for the cutting-edge emerging nation. South Africa in the early Nineteen
Nineties was busily getting ready itself for a future after nearly five decades of apartheid. As the ruling National Party started
loosening its grip, the world anxiously organized to assist. Hundreds of agencies from around the world sent assessment teams
to consider commercial enterprise opportunities. A prima facie case was once convenient to make: in contrast to many African
countries, South Africa boasted a current infrastructure, a steady currency, and a highly well-educated workforce, all—
ironically—products of the apartheid system. U.S. companies absolutely saw the chance to demonstrate their commitment to
range and inclusion. McDonald’s Corporation, for example, set up a franchise training application for black South Africans and
shortly solidified plans to build lots of stores. The company also sent an African American to head up its operations there. J. P.
Morgan set up an application to instruct black financial executives. South Africa had long been a multiracial cauldron of dueling
cultures and interests. Apartheid, Dutch for ‘‘apartness,’’ describes a deep and huge machine of racial classification and
ranking, with whites at the top and black and those of combined race or ‘‘colored’’ and Asians at the bottom.13It used to be
codified into regulation through a series of measures that started in 1948 with the election of the National Party, a Boer-
dominated political party. Passage of repressive laws continued, amongst them the Population Registration Act in1950, which
limited blacks at that time 70% of the population to 13% of the land.

The Abolition of Passes and Coordination of Documents Act, which required all blacks to elevate identification booklets, called
‘‘passes’’; and in1953, also the Preservation of Separate Amenities Act, which established ‘‘separate Coca-Cola and PepsiCo in
South Africa but no longer necessarily equal’’ parks, beaches, publish offices, and other public locations for whites and
nonwhites. Evidence from both American and South African fundamental sources suggests that the selections to confront the
South African government’s racial policies may additionally have been born out of an experience of social and economic justice,
but organization income proved the figuring out element in how both companies carried out their very own interior
publications of action. From its outset, many political businesses hostile apartheid, distinguished amongst them the African
National Congress (ANC), which was once formed in1912. Opposition to apartheid was once largely peaceable till the Sixties
when a large team of blacks in the city of Sharpeville refused to elevate their passes. The government declared a nation of
emergency and spoke back with fines, imprisonment, and whippings. In all, sixty-nine humans were murdered and
187wounded. The ANC and a second prominent political organization, then-African Congress (PAC), have been banned.
Relations between the United States and South Africa throughout apartheid were, like both Coca-Cola’s and PepsiCo’s, comfy
into the 1980s,15when activists and politicians started out to agitate towards the country’s racist policies. In 1986, the U.S.
Congress surpassed the Comprehensive Anti-Apartheid Act (CAAA), which dedicated the United States to ‘‘use economic,
political, diplomatic and other capacity to take away the apartheid machine and to aid those victimized by apartheid to
overcome the suppressing laws imposed on them through apartheid.’’16PepsiCo and Coca-Cola, watching for the move, soon

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introduced that they were ending operations in South Africa.17Yet, even as it deliberate its departure, Coca-Cola was putting
the stage for a return, one day. ‘‘Our intention is now not entirely disinvested,’’ said Coca-Cola.

With the improvement of people’s life standards, the drink industry is in a quick developing period. The demand is starting
to increase. Even though Coca Cola takes up almost 50% of the market in South Africa, there are still many threatening
competitors. Its greatest is Pepsi. Also, some small companies that are copying these big corporations and some that
producing an alternative to the soft drinks, remain a threat to Coca Cola. Low prices of alternatives mean lower prices as
well of other drinks. This will eventually lead to limited profits. If people now prefer more juice and tea to coke, this will
greatly affect the performance of Coca Cola in South Africa a lot leading to a drop in its market share. The competition faces
a difficulty in entering the soft drink industry in South Africa because of bottling network. Pepsi and Coke have authorized
business contacts. Wwith their prevailing bottlers who have the authority in specific environmental regions. So, in terms of
the market share both have an upper hand compared to other competitors.

Coca Cola’s greatest competition has been PepsiCo even though PepsiCo occupies one of the least market shares on that
chart but singularly, it remains the greatest competitor. Their products besides the brand name are almost the same and
now people seem to be shifting to Pepsi. This is as a result of health awareness increasing concerning Coca Cola and it can
actually hurt the market share for Coke.

But Coca Cola is working hard to make sure that they provide they provide a product that is consumer friendly and targets
all hence the introduction of their less sugar products like Coke Zero, that has been on the rise since its introduction to the
market.

The market analysis is used to monitor the company’s environment both external and internal. Coca Cola uses this strategy
to look at or monitor both external and internal factors in regard to its business. This is because the external and internal
factors contribute or rather influence a lot of its success and also being able to remain as the best soft drink industry.

2.1.3 Supplier

Increase in the price of milk, plastic and oil has led to the increase in the costs of raw materials during the last three years.
As a result, many suppliers, including some long-term suppliers, cannot accept the initial price. This will now force Coca Cola
to sign a new contract, because they require changeable prices. But if the cost increases to some extent, the suppliers can
increase the price. What this means is that Coca Cola and the supplier can now share the risk.

1. Customers

To customers good drinks should meet these two requirements; Having a good taste and healthy, there is no doubt that
COKE tastes really good. However, as other carbonated drinks, Cola contains sugar and carbonic acid. This will hurt the teeth
and lead also to fat. This has really affected Cola’s demand with the South African market and even Globally. Therefore,
Coca Cola needs to notice the changes in the customers’ needs and meet the requirements.

2.2 External environment—Macro-levrellevel (THE PESTLE ANALYSIS ) OF COCA COLA

I figured that to review the external environment of a company, PESTLE analysis is really a helpful tool. Coca-Cola is really
influenced by different components which incorporate Political, Financial, Social, Mechanical, Natural and Lawful. The
examination of these variables will deliver distant a much better, a higher, a stronger, an improved, a higher neglect of the
outside environment of Coca Cola from all aspects and deliver a estimate on different dangers and openings within the
advertise.. Coca Cola is actually affected by various factors which include Political, Economic, Social, Technological,
Environmental and Legal. The analysis of these factors will give a better overlook of the external environment of Coca Cola
from all aspects and give a forecast on various threats and opportunities in the market.

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This will help to keep track of Coca Cola’s major challenges and point out the hidden prospects and opportunities in the
market.

POLITICAL ECONOMICAL

 All the political influence and contributions created  the effect of economic tragedies
according to the laws and regulations of the Nation  the impact of a good economy
 The effect of the changes made within the political 
atmosphere of the country

SOCIAL TECHNOLOGICAL

 Changes and shifts in the nation from taking  Production through the use of technology
carbonated drinks to taking only healthy drinks  Use of online platforms to assess opportunities
 Coca cola’s economic empowerment

ENVIRONMENTAL LEGAL

 Sustainable solutions for 2021  Government’s laws and regulations on the


 Giving back to the environment industry
 Laws and taxes on the process and
ingredients of the product being produced.

2.2.1 POLITICAL

Politics affect business greatly. It affects business in a tremendous way. This is because especially in Africa, for a big
organization like Coca Cola it has to be in good books with the government if it really wants to operate at maximum capacity
within that nation. Laws can change anytime and they might actually work against the organization. So, the company needs to
know how maneuver within the system.

Coca Cola was really affected by politics after the South African independence in 1994. This really didn’t come out as a shock as
the company had already tried to eradicate this problem by partnering with a black owned firm and making it the face of Coca
Cola. But Despite the efforts because the product has not really changed, the black’s majority started a campaign to boycott
and sabotage the brand. Their reason for doing this was simple. The product reminded them of the past full of racism and hate
from the white minority who had colonized the nation was controlling it before 1994. The plan actually worked and Coca Cola’s
market share dropped. Their plan was to make Pepsi the new face of South Africa, the future. Could politics actually manage to
flatten the sale of Coca Cola in the nation? The answer is yes. Politics did manage to do just that. Protest started. People started
marching in the streets blocking the delivery trucks of Coca Cola some burnt and crippling the business. The exclusive contracts
they had signed with their bottlers protected them and acted as a shield from being put out of business in South Africa.

CCBSA has also tried to expand into other African states before that includes Zimbabwe. The political atmosphere in Zimbabwe
had them losing all hope of ever opening a plant in the Nation. Zimbabwe states that for every foreign investment into the

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nation, the company or organization hoping to invest must sign the exclusive contracts offered by the government. These
contracts states that 51% of the company in the nation belongs to the government. This leaves the organization with only 49%
stock of the company. This undeniably ridiculous but, that’s the law of the nation. Politics really have a great impact on the
growth of the organization. So, it mostly resulted to selling finished products to the nation which in a way benefits greatly the
organization as the consumption rate of the product in Zimbabwe is almost the same that of South Africa.

ust as a few other third-world nations, the advertising of South Africa is vulnerable to the perspectives systems and different
approaches by the government. As of late Coca Cola and the South African government come to an understanding because it
finalizes the buy of a controlling 54.5% stake in its joint Africa wander with ABInBEv (ABI.BR)Just as some other developing
countries, the market of South Africa is susceptible to the aspects like ideologies and various policies by the government.
Recently Coca Cola and the South African government reached an agreement as it finalizes the purchase of a controlling 54.5%
stake in its joint Africa venture with ABInBEv (ABI.BR)

. This also includes increasing black ownership in Coca Cola Beverages South Africa to 30% by 2021

This shows the company's alignment either the government's national imperatives for inclusive social and
economic development

This will definitely affect the company’s market share as the majority support of the brand comes from the black
community in South Africa.

2.2.2 ECONOMICAL

After the introduction of New Economic Policy in the SA economy, the financial conditions of the country have
become stable. The introduction of this policy has abridged the issuance of an industrial license. The liberization in the policy
of foreign capital has attracted foreign investments which have improved SA economy.

The informal region was once key to Coca-Cola’s strategy in South Africa. Informal and formal traders are a key section of the
corporation model. As a key company in South Africa’s beverage cluster, Coca-Cola’s machine is fairly representational (e.g.,
whether competitors like it or not, what Coca-Cola does definitely figure strongly into their own strategy). 1998 study of 815
casual retail stores in that county found that Coca-Cola employed about 16,500 people immediately and that another 178,205
jobs have been in a roundabout way supported by the company’s production system. Of the latter estimate, about 42%of the
jobs (74,794) created were in the casual area. Statistical analyses verify what most casual observers may without problems
note: Informal groups are a seriously vital part of South Africa’s economy. Most are sole proprietorships, started to both make
bigger non-public or household income or to stave off unemployment. According to research commissioned by way of Coca-
Cola, their monetary activities in South Africa also furnished consider-able upward mobility for aspirant black-owned
businesses.

‘‘Soft drink pro-ducts show up to play a pivotal role in assisting lots of entrepreneurs seriously change into manageable
enterprise concerns’’ (Woodward & Teel, 1999).

the GDP per capita declined by 4.8% from 2018 to 2019 and we saw a tremendous rise of 16.7% getting into 2020
before the pandemic hit the nation.

Since the economy is stable and is in path of positive growth, there is very good potential increase in the market
share for Coca Cola. CCBSA is committed to venture improvement as ana venture for the long run and change of South
Africa. We reinvest capital in neighborhood businesses through our Neighborhood Conveyance Accomplices (LDPs) and the
Develop My Trade preparing program for little retail owners. Coca ColaWe right now hasve 126 LDPs which are
neighborhood community businesses, run by neighborhood individuals utilizing neighborhood individuals. The program has
made 450 work openings to date. 93% of LDP proprietors are value arrangements with 20% possessed by dark females. We
have prepared over 6 800 customers on the Develop My Commerce program to develop their businesses economically into
long run. With each dealer supporting at slightest 4 individuals with their commerce pay, this implies about about 34 036
individuals have profited from the program. 95.2% of program members essentially expanded their commerce aptitudes and

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98.4% detailed a dealsdeal increment. Besides, 11.1% of proprietors were able to utilize 1 or more person(s) as a result of
the training.

The current economic situation is South Africa is really promising and Coca Cola is really capitalizing on it and is able to make a
profit. Coca Cola’s market share can actually realize a rise.

2.2.3 SOCIAL

South Africa's population, the majority is youth and possesses high purchasing power. Exponentially the population
of South Africa is growing and this means that the number of customers will also increase. The majority of the young
generation in SA give more priority to the health and their health-conscious nature is driving them to choose healthy and
refreshing drinks. This has been one of the main reasons for its drop in market shares.

Even so the hot weather conditions in Africa, insists that people buy cold refreshing beverages and Coca Cola will
always be the most favorable and also with introduction of other low sugar Coke products, everyone can enjoy.

2.24 TECHNOLOGY

It is well known that South Africa is a developing country but, amazingly it has made great advancement in the field
of information technology. The technology in South Africa is synchronized and adapted for the use of 4G and 5G networks.

Technology has managed to cover a lot ground and is now reaching self-sufficiency in providing the updated
solutions. These conditions provide Coca Cola to further expand its Brand in South Africa.

With the great use of technology and social media in Africa at large, the brand can interact with its customers in a better
way. But there is also great damage that comes with it. If the brand is to put up an add that does not settle well with the
customers or misinformation by those who intend to hurt the brand, it reaches a lot of people very much faster before it can
actually be rectified and the damage has already been done. But also, the reply, response or statement to rectify the
mistake also reaches the masses in a similar way.

2.2.5 LEGAL

To support the investing companies the government of South Africa has introduced the idea of excise free zones. This
is really a great relief to the companies since it will allow them to concentrate primarily on the manufacturing process rather
than outsourcing. These legal proceedings provide a very healthy environment for Coca Cola. 3.85million people in South
Africa have diabetes and it surely started raising a lot of concerns regarding to people’s health. Research shows that
approximately 70% of women and 13% of women in South Africa are obese. On the global obesity scale in the sub-Saharan
Africa, south Africa is ranked the highest and this surely raises a lot of concerns. From 11% the tax on sugar of sugary drinks,
a rise will be witnessed that will amount to 20%. This will result in decline in the consumption of these soft drinks and also a
great decline on sales. BevSA said and I quote “72 000 jobs could be lost if this tax was to be introduced. This affects greatly
the sales and revenue of the giant and will definitely result in a market share decline.

2.2.6 ENVIRONMENT

This aspect majorly depends on the geographical feature of the place. any sort of the change in nature is beyond the
control of humans.

Coca Cola South Africa has managed to introduce many programs that are eco-friendly in other countries. So, it will
not be a great concern to the company.

The major issue in the ecological system of the nation facing poor recycling techniques, pollution.,

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CONVERTING TO SOLAR POWER

SOLAR POWER
ORDINARY
46%
54%

CCBSA is now converting to using solar energy 100% in all its facilities taking part in the reduction of air pollution around South
Africa and the globe at large. What it means is that they are now cutting on their electricity bill and channeling that money to
other projects. It also means an increase in the revenue. This helps them with more credibility from the government and the
society eventually. Customers want to be associated with a brand that is definitely making a difference or an impact in people’s
lives. Everybody wants to be associated with that great cause.

CCBSA has also introduced the program of providing clean water to the cities they are operating in. In South Africa not every
community has access to adequate clean water and with the breakout of diseases like cholera it is really a big thing for CCBSA
to come and assist. That’s the help the community cannot forget and it also helps with brand loyalty. Maintaining that strong
hand within those areas is vital to the market share of the company.

2.3 INTERNAL ENVIRONMENT ANALYSIS

The inside commerce environment and its impacts is contained inside the company’s administration. The basic inner
situations that Coca Cola guarantees are put in put incorporate; viability within the generation method, legitimate
organization abilities and compelling communication systems. To successfully screen and oversee its inside environment,
coke conducts appraisals of its operations and reacts suitably to any viewpoint, which is likely to cause ineffectualness in any
segment of the shopper and generation procedure. Numbers, the market share is always about the numbers the more the
company is successful compared to its competitors and its previous success, the greater its market share. Now we take a look
at the aspects that makes this possible for the organization at large.

2.4 SWOT ANALYSIS

STRENGTHS WEAKNESSES

 Market position in the industry  Food and beverage sector


 Any innovative strategies?  The management of water
 Distribution network analysis  How healthy are the carbonated drinks
 How loyal is the customer base

OPPOTURNITIES THREATS

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 Diversity in products  Competitors


 Acquiring all small promising competitors  Government laws and regulations
 Getting established into remote areas
 Opportunities also in the water industry

Strengths

Coca cola has really an incredible brand identity and also a particular taste that makes it so hard for the consumer to actually
find a substitute.

 Coca Cola remains the at the top in beverages brands, when it comes to sales and reach
 CCBSA has other subsidiary brands that popular like Coca Cola Original, Fanta, Sprite, Twist, Sparletta, Stoney
 Coca Cola has long associations with international sports events, sponsorship e.g.e.g., World Cup 2010
 Being able to adapt to changing market conditions e.g. In South Africa the brand is now moving towards sugar
free options, juice, water etc.
 Strong financial conditions
 Coca Cola has a Strong brand recall of all its products. This is made possible through marketing and advertising
using the strategy of associating with celebrities as brand ambassador
 Efficient and Effective packaging technique which gives great emphasis and raising awareness on recycling and
reusing
 CCBSA is very good at customer engagement. This is very vital to the big organization as everyone wants to feel
that sense of belonging and want feel like they can relate with brand on a personal level.

Weaknesses

The greatest competitor for Coca Cola has been Pepsi since the age of time. However, Pepsi has managed to breakout of the
soda only model of revenue which Coca cola is running with at the moment, into also the food products. Unlike Coca Cola,
Pepsi has Lays chips and also other food units. This makes them to actually go ahead of Coca Cola in South Africa in terms of
being to branch out of the soda-only model revenue and being to come up with great revenue streams. If Coca Cola doesn’t
pick up the pace, their market share will definitely drop. It has been one of their weaknesses, water management. In most
African communities’ water is greatly needed and its scarce. But because coca cola pays for it to keep the business going, they
get most of it leaving the communities with a shortage of water.

In general people are just getting concerned with their health, watching out on obesity and diabetes. As we all know that
these carbonated drinks are a great influencer of these health complications. The result will definitely affect Coke SA
because the consumption is now getting low.

Opportunities

Coca cola has the great potential to enter into the food industry as well because they are good at creating new products and
diversifying their current offerings. It’s not just about creating these products they also have an added advantage in the
market of their well-established brand Identity, manufacturing, evaluation and loyal customers to back it up.

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The establishment of the Coke Studio in South Africa really helped with the brand awareness and also it can be opportunity
for the company to use the platform as a way of promoting and introducing their new products and drive the message
home.

Not just a Coke Studio but with the amount of success it has managed to accumulate in South Africa, there can actually be
an establishment of a Coke Soccer Tournament and a Coke Soccer Team. Fans will always support their team and its brand
and also during the tournament there is a great hype around the brand and also brand awareness. This will definitely boost
sales and revenue resulting also in a market share increase.

Since they have been trying to deal with water shortage but helping supply the community with mor water drilling borehole.
Coca cola can actually get into the water business, providing clean bottled water to the communities because they have the
resources and the capacity to do just that.

 It can also increase its reach in the untapped cities and towns, and market can actually boost Coke SA
 Buying, acquiring or owning other companies can actually strengthen Coke’s place within the industry and its market
share.
 Coca Cola has already implemented the les sugar drinks and no sugar drinks. Its rival Pepsi.co has not rally done that
and the reasons not really known. This puts Coca Cola at Better position. Consumers will look at the brand as socially
responsible and this will actually put Coca Cola ahead, because of Pepsi’s slow response to this great arising issue.

Threats

Coca Cola uses a lot of water in the making of their products and it should always be in great supply at all times. should they
be any water scarcity, the company will be in great trouble. Unlike Pepsi, Coke doesn’t have other products apart from their
soft drinks. This will make it hard for Coke if water was to become a challenge, since they won’t be having other big revenue
streams. All these non-soft drink alternatives like cafes, smoothies, teas and tonics will always be a threat to Coke’s
livelihood, since they seem to be taking over.

 Inflation, instability and economic slowdown in Africa as a whole will always be a threat to any organization invested
in Africa. Coca Cola South Africa is no exception of such threats.
 If there is a strong competition in the industry, it can lead to a reduced market share. The competition in South
African industry is really tight.

2.5 My overall analysis and conclusion

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Chart Title

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
STRENTHS&WEAKNESSES OPPORTUNITIES&THREATS

NEGATIVES POSITIVES

This illustration shows that Coca Cola has actually a lot of potential to grow in the South African market and be able to
expand its business in beyond one industry and face little resistance. A lot of factors are in favor of the Brand’s growth and
expansion

Coca Cola is spending a lot of money and time in marketing to become the biggest /giant brand in the industry. But if you
look at it from another angle, even though they are at the top there is a great chance that their greatest competitor Pepsi
seem to be growing its market share a little bit faster than Coke. The reason being that Pepsi has managed to branch out
into other industries like food products. This makes it possible for them to be having revenue every time from different
industries putting them at a safer or better position if the soft drink industry is to fall under attack. They will always have an
upper hand over Coke unless Coke steps up and venture into some of these other than soft drinks, as way to increase their
market share and have a big foot in the both industries.

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PART 3.
SUGGESTED MARKETING STRATEGY

3.1 MARKETING OBJECTIVES

This is the part where we ask ourselves who we are? Where are we going? And how can we get there? Our main goal is to try
to increase Coca-Cola's market share by adapting to marketing strategies by the year end, 2021. We need to come up with a
marketing strategy to help them and create a marketing plan that will help Coca Colathem achieve thisese goals.

3.2 STP STRATEGY

3.2.1 SEGMANTAION

This is the division of the whole market for a certain product into different segments based on maybe homogenous
characters of customers. Why.... this process is to analyze and get a better understanding of the market we are dealing with
and to identify opportunities, giving us what I would consider as a competitive age be able to capitalize on these
opportunities as much as we can.

Geographic segmentation: CCBSA has managed to have to segment South Africa on the basis of geographies. It created
a lot of various division in regions across the country with each division reporting to the headquarters in Elizabeth. Every
division is more like autonomy. They run their own sub operations.

Place of consumption: this has been onone of the main successful goals of CCBSA, to make sure that everywhere you go,
you guaranteed to find a fresh cold Cola with most of it taking place in restaurants especially in the fast-food restaurants.

Product type: their segmentation is also base on product type. In the market there are Coca Cola products and non-Coca
Cola products with Coca Cola realizing much of the market revenue. Because of the health care issues and coca cola really
not being able to provide a variety of products to choose from, we have seen tremendous rise from the other non-Coke
products in terms of revenue.

Demographics: this has played a tremendous role in the build upbuildup of the CCBSA market. At this point in timetime,
we are now seeing a lot of young people really associating themselves with brand more than the elderly. Most of the
customers belong to working class which is comprised mainly with a lot of young people.

3.2.2 TARGET MARKET

The target market of Coca Cola has always been mainly the young generation. I have come to the conclusion that; the youth
is their main target and it consists of 15-35 age group. They do not really have certain class in the society they target because
their products are affordable to everyone but they mainly appeal to the young adults and family type of consumers. They
ads preach happiness freedom, family and youthfulness. They involve a lot emotion and they appeal to the almost everyone
at a personal level. One time Coca Cola used a real time proposal in one of their ads it got worldwide attention a lot of
million views on the internet just to show how powerful and engaging it is. Parties and celebration are mostly the core of
their many ads.

3.2.3 POSITIONING

Looking at most videos’ ads put up by the company, we can clearly see that the company position its products as products
that are thirst quenching and also very refreshing. Not only that but, the products are also associated with the feeling of joy,
having a good time with friends and family and just generally enjoying life every day. The product throughout the ages has
been known to be of high quality and consistent as marketed.

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A Look at:

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3.3 MARKETING MIX

To meet consumer demand, Coca-Cola has developed a marketing portfolio. The Mainly marketing mix provides a better
understanding of the four main elements. The role of the marketing mix in Coca-Cola's decision-making is to act as a tool to
provide information about competitive advantage and to mix good corporate resources.

We will look at how these four elements fit into the marketing world of Coca Cola in South Africa

THE (FOUR) 4PS

Elements of Marketing Mix


Physical
Product Price Distribution Promotion

Quality Special Discount Channels


Advertising
Style
Allowances Coverage
Brand Name Personal Selling

Sales Services Terms of Credit Locations


Sales Promotion
Warranties Inventory
Public Relations
Packaging
Transport

Figure 3.1 …

All roads should lead to customer’s satisfaction. We are now finding out the needs and wants of Customers. The marketing
concept now is shifting from “taking what we produce and sell” to “finding out what they need and make it”.

3. 3.1 THE PRODUCT STRATEGY

Here we are talking about all the product related activities that satisfies the needs of the customers. This includes not only
physical objects but also services that are capable of satisfying a customer’s needs and wants.

Innovation in the Coca Cola products definitely going to help increase the market share of the Giant in South Africa. Product
innovation or simply the introduction of new technology to the business can really help increase sales. Coca Cola once used
the name writing machine in South Africa and we saw a lot of people paying more attention to the brand because it was
interacting with them on a more personal level.

Coca Cola has to maintain the standard of producing high quality products at very affordable price. This will really help the
Giant. It caters for the conservative and progressive consumers. Also keeping making sure that, everyone can afford the
same type of quality at the same price without considering social statuses. Even though the company has not yet really
produced the highest quality in terms of health complications that comes with some of the drinks it is still working towards
that goal and also helping its communities to have fresh clean water as they both share it.

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The Cola products are sold in various sizes and packaging. Its core products are sold in 2ltr,1.5ltr, 1ltr, 500ml and 200ml
bottles in plastic, cans and glass bottles. They also made the brand logo clear and visible on the bottles. The bottles all have a
unique shape/shapes that perfectly suits the Brand and flavour.

Coca Cola has a unique style that’s is so hard to copy. The brand name is now marketing its self and gained a lot of
popularity because of its simplicity. The small businesses looking forward to get into the market really have to think twice as
9 in every 10 people would actually buy Coke.

Market research on old and new products will definitely help the company to identify all the possible areas of opportunities
that can be exploited- For the

old product we are trying to find ways we can improve. The Coke soft drink has been falling in sales for a while now. The reason
is because of its health issues. Product research looks out for these little things that may be causing the drop and also how it
can tackle them.

All these positive attributes help the brand to grow bigger. The Real pre- and post-sales services helps in facilitating
marketing. This eventually increases the customer’s satisfaction, sales and the good will of the business.

3.3.2 PRICE STRATEGY

Pepsi is the greatest competitor or rival of Coca-Cola in the soft drinks segment. Both of these two brands cost their items
competitively. Costs are no longer as well over the top to go past the normal clients achieve and nor as well moo to donate an
effect of moo quality. Coca-Cola’s estimating approach is pointed at utilizing company devotion. Indeed, in spite of the fact
that, due to the diminishing request for pop items, the cost competition between Coca-Cola and Pepsi has gotten indeed
seriously. The costs diminish as the measurement of the bundle develops greater. Bulk customers of the product may
moreover ought to pay essentially lower costs than ones buying single Coca-Cola items.

All pricing objectives and policies are covered by the price element of marketing mix. Price is an effective means of
competition and Coca Cola’s prices have remained low and competitive since the ages. This also improves demand and acts
as a sales promotion. Coke has managed to reduce the number of middlemen as way of keeping the price low when it
reaches the consumers.

Coca Cola South Africa follows a second (2nd) degree price discrimination strategy. Prices in different segments have different
prices. This is a businesbusiness with few sellers and many buyers where Coke and Pepsi are the dominant Giants. Coke
cannot increase price in one segment that matches Pepsi especially here in Africa where almost everyone is price sensitive.
This means that customers will switch to Pepsi in that segment. How has Coke managed to deal with this. By reducing price,
a little when buying in bulk. And also allowing small business big orders meaning the product moves much faster.

Low prices always do the magic when it comes to expanding the market share of a business. If Coca Cola lower its prices, it
will attract more consumers or customers rather and this will help their customer base also increasing their sales. When this
happens, it also means that the market share of the company is increased.

3.3.3 PLACE AND PHYSICAL DISTRIBUTION

This element is mainly focused on linking the seller and the buyer. Providing the product at the right time and at the right
place has been the drive for Coca Cola in South Africa.

South Africa had a well-developed casual zone of the informal sector by way of the mid-1990s, a by-product of the harsh
economic crisis during apartheid. The apartheid-era ethnic townships and diverse regions were served by armies of taxis, bars,
eateries, foodstuffs, and distinctive necessities catering to the Africans. Operating out of backyards, side doors, and local kiosks,
the tuck andspaza19shops grew to become a quintessential lifeline for black South Africans in the waning years of apartheid.
This economy was once systematized in that it featured geared up distribution networks and a range of kinds of cooperative

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agreements. Informal agencies additionally supplied employment and a potential to increase economically for black businesses
in South Africa

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Marketing planning 29

Ingredient Informal and


suppliers formal

Packaging Sub- Co
Suppliers Production wholesalers
Upstream Linkages

ns
system
um
Transport Coca Cola
and other Bottlers Retailers ers
equipment Informal and
and
formal
Canners
Advertising
and other
business
Other points
of sale
Construction

This is the bottling system of Coca Cola and it has not changed much since 1999.

In almost every store there is Coke product. Even in remote areas they have managed to make sure that they cover a lot of
ground in terms of distribution and market share. In Africa we say it’s easier to find a cold Coke anywhere than essential
medicine. This goes to show what a brilliant distribution structure that has been set by Coca Cola. Their distribution
structure could look more like this;

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Marketing planning 30

Warehouse Distributor Outlet


Productions
Wholesaler
Consumer

Hawker

Figure 3.1 ….

Cutting down on middlemen reduces the prices increase of the product. Coca Cola will have to make sure that they do not
use so many middlemen before the product gets into the hands of the consumer. Taking use of this system setup called
micro distribution centre (MDC) will definitely help the Giant in keeping the consumer price low. This independent exclusive
distributor only sells Coca Cola products, distributing to restaurants small supermarkets, street vendors and kiosks. This
helps move the product much faster from producer to customer. The use of small businesses by Coke seems to be profitable
because they are more flexible in responding to customer needs and trade long hours and that understanding of the
communities, they work with is the key and they also in a much better position to extend credit to customers in their
neighbourhood.

3.3.4 PROMOTION

Due to the severe competition in the soda industry, the top brands spend a good deal on advertising to force higher income
and revenue. Coca-Cola’s promoting consumption in 2016 utilized to be $4 billion. In 2018, the promoting consumption
developed to $4.1 billion. It utilizes each regular and modern channel to promote its manufacturer and products. Coca-Cola
launched its Taste the Feeling marketing campaign in 2016 which unites all of its brands. This one manufacturer approach
taken by using Coca-Cola marks a substantial shift from its preceding advertising strategy. Apart from TV advertisements and
outdoor advert campaigns, the organization serves its ads throughout the web and on social media. Its social media bills are
used to join with its fans and followers and for consumer engagement. There are more than 1,250 promotional movies of
Coca-Cola on its reliable YouTube channel. As competition has stored intensifying in the soda industry, organizations are
focusing greater than ever on their social image and reputation. Coca-Cola is additionally contributing a part in CSR and
maintainability and creating a feasible supply chain and fabricating arrange. Contributing in socially prescribed assignments has
demonstrated truly valuable for the undertaking and has strengthened its picture within the showcase.

When it comes to advertising and branding Coca Cola sets the bench mark in Africa, but there is always room for
improvement. CCBSA mainly focuses on aggressive marketing through ad campaigns using media like online ads,
sponsorships, radio, TV and print media. CCBSA. Advertising could be the most expensive part of any marketing structure
but wen when done the proper way it is always profitable. This is an excellent way of getting ahead of competitors.

WHAT COULD DRIVE SALES?

All these factors within our marketing mix need to be considered because they affect our sales in a tremendous way.

Advertising Promotions Competition


tv sponsorships seasonality
radio events weather
outdoor price economic
internet distribution demografic
merchandising industry data

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Marketing planning 31

Figure 3.3 ….

Additional

PEOPLE

CCBSA has become one of the top organizations in Job creation. It has managed to create a lot of Jobs in the formal sector and informal sector. Coca-
Cola is also a giant organization that focuses on strategic human resources management to assist its employees find profession growth and job
satisfaction. Employees are a source of aggressive benefit in the 21st century. Therefore, businesses like Coca-Cola have implemented human resource
management strategies that allow worker empowerment and maximize job satisfaction. The organization has also set up a device of rewards and
awareness that work to power employee retention higher. This helps tremendously in the success of the company.

PROCES S

The Coca-Cola framework is not a single substance from a criminal or administrative viewpoint, and the Company does not exceptionally possess or
oversee all of our bottling accomplices. Whereas many view CCBSA Company as earnestly "Coca-Cola," its gadget works through numerous nearby
channels. The Company makes and offers concentrates, refreshment bases, and syrups to bottling operations claim the brands and are responsible for
shopper brand promoting and showcasing activities. CCBSA bottling accomplices make, bundle, stock, and convey the extreme branded fluids to their
clients and promoting accomplices, who at that point offer CCBSA stock to customers.

All bottling partners work carefully with clients -- grocery stores, restaurants, avenue vendors, convenience stores, and movie theatres - among many
others -- to execute localized techniques developed in partnership with our Company. Customers then sell their merchandise to consumers at a fee of
greater than 1.9 billion servings a day.

PART 4. ACTION PROGRAM

Benjamin Franklin once said,” Failing to plan is planning to fail”. Planning helps the organization to stay on track and also
gets everyone prepared for obstacles ahead. This gives us a clear direction.

An action program is more like a checklist of the steps/ tasks we have to complete in trying to achieve the goals set. It’s a
very important part of the strategic planning process that also helps with improving teamwork planning. An action program
includes certain components like;

 A defined description of the goals to be achieved, the end goal


 Tasks or steps that need to be carried out to reach the goals
 People who will carry out these tasks
 Timeframe or when these tasks will be completed
 The resources needed to achieve or complete the tasks
 Progress evaluation measures

Writing everything down makes it very easy to track down the progress and plan in an efficient and effective way.

STEP1: Defining our end goal

The end goal is to increase the CCBSA market share by increasing its revenue. If we are to be specific, we could say
increasing it by 6% at end of 2021 and 1.5% increase quarterly.

Is it attainable and realistic? Very, CCBSA has an advantage of getting most of the resources like water and labor at very low
cost and keeps acquiring big and small beverage companies as way of increasing their mass production. And having CCBA
moving its headquarters and some of its operations to South Africa this automatically means that there is a great help and
Partnership between the two. This will also see CCBSA boosting its production and sales.

STEP2: Listing the steps to be followed

Now that the goal is clear. We now need to know exactly what should be done to realize it. We need to know the tasks to
be carried out and who is going to be carrying them out, not forgetting the deadlines. The whole team actually will have

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Marketing planning 32

access to such documents and will all be involved in case there is help needed, it’s easy to locate the person responsible and
who might be able to help within the team.

TASK ASSIGNED TO DUE DATE

STEP3: Tasks and Deadline priority

This where we reorganize our tasks in order of great importance giving more priority to those tasks which can actually be
blocking the other sub steps.

STEP4: Setting Mini Goals

These little milestones always lead to the main goal at the end. These help the team to always be looking forward to
something keeping them motivated.

STEP5: Knowing the resources needed.

It’s very important to make sure that all the resources needed to start are in place. In any case some resources are not
available at the point of start, then a plan has to be made to get then. This is important because they might actually slow
down the progress and also standing in the way of some tasks that have to be fulfilled in the early stages.

STEP6: Action Program Visualization

This is done to create something that can be visually understood by everyone in the team. It can be editable and also shared
and accessible among the team members. It also works as a point of reference keeping every member goal oriented.

STEP7: Monitoring, Evaluation and Updates

Every work done needs this stage. It is very necessary to monitor, evaluate and update our work and progress. This helps to
see which tasks are still yet to be completed, those late on due dates and which tasks have already been fulfilled. It also
helps if there is any area that needs to be fixed then it gets the deserved attention accordingly.

Action program objectives

Tasks Task owner Timeframe Resources Budget Evaluation

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Marketing planning 33

PART5. CONTROL

There is no any planning without control. Marketing control monitors the proposed marketing plan or strategy as it
proceeds and then make adjustments where so fit. Our objective and plan states out where we want to go and the road
map. The control is the tool that tells us if we have arrived or if we are in the right direction. Hence there is a need to be
always checking our progress and compare it with standards we would have set for the objective or goal to be realized.
Control involves a lot of things including measurement, evaluation and monitoring as the 3 keys resources are not always
enough and sometimes very costly. So, it is very important to be always controlling our marketing plan. We have to set
standards and check our progress according to those standards. The control process for this plan involves, marketing
objectives, performance standards, compare results against standards then corrections and alterations.

1 2
Marketing Perfomamnce
Objectives Standards

Compare
Corrections
results
and
against
Alterations
Standards

4 3

Figure 4.1…

1. Marketing objectives
Our main objective is to increase our market share in South Africa for the year 2021, not just competing with our
competitors but also with ourselves. CCBSA has a great chance of increasing its market share this year. The CCBA is
now moving its headquarters to South Africa this year. What this means is that, there will be a lot of production and
marketing for CCBSA AND CCBA all from south Africa. Since it is the same brand hence the introduction of a new
strategy called the ONE BRAND STRATEGY.

2. Performance Standards
If we say our main target is a 6% increase in market share by the end of the year then 6% becomes our performance
standard and our control system should strive to
meet that goal or standard. So, the performance standard should be 1.5% every quarter.

3. Compare results against standards is our third process. It will be good to always check the progress Quarterly.
This is good because by this time a lot of and enough data would have been gathered which will allow us to make a
clear decision on how best we can meet or be close to our own set standards. There so many approaches or areas of
interest;
 Market share analysis: here are just taking a look at our market share and how it is behaving. Is it
exponentially moving up, going down or its constant?

CCBSA REVENUE MARKET REVENUE 100 CCBSA MARKET SHARE

 sales analysis: this is basically getting or mining data to analyses and evaluate our sales performance against
the goals. This process provides us with the information to see which product has been the top performing

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Marketing planning 34

and which product as well is underperforming. It also shows us the problems in selling the product and
opportunities so that we can forecast and come with a best way to generate more revenue and increase our
market share.
 quality control: this is where we seek to ensure that quality of the product is maintained and further more
even improved. It also makes it a point to ensure that the product does not make people sick. On this issue,
CCBSA is trying to reduce the sugar levels in their products thus contributing to the fight of obesity in the
nation.
 marketing research performance of any promotional activity: in the late 90s SA advertising firms helped to
push the product, promoting it in the townships through Africa’s greatest passion, Football and it worked.
Since then, the giant has always been trying to find opportunities such as these. This helps boost sale and
brand awareness.
 market reaction or acceptance to pricing policies
and also
 Feedback from customers satisfaction survey https://sqwuys5a197.typeform.com/to/OCTvLpyz

1
Let's get going. When you first used the product, what was your overall impression of it?

2
Sweet. What do you like most about it?

3
Overall quality — how would you rate the product?

4
And how innovative is the product?

5
Total honesty — how much do you need the product?

6
How would you rate its value for money?

7
If you could buy the product today, would you?

8
How likely are you to replace your current solution with this product?

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Marketing planning 35

9
How likely are you to recommend this product to someone you know?

Edit

10

Which product do prefer most?

Responses from the survey gave us a tremendous amount of Data that is vital to how the CCBSA is behaving in South
Africa. These responses are from online tests that I did in South Africa through posting my link in their social media
groups and platforms. Also going a mile just to show technology is playing a big role in the growth of the brand and
so many other. It really has become a tool in marketing products in Africa at large and South Africa holds the record
of being the most advanced in technology so that plays a big role in their marketing and brand awareness.

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Marketing planning 36

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Marketing planning 37

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Marketing planning 38

According to this survey it’s clear that Coca cola still has a foot in the market. Coca cola has managed to really engage with
its customers in a way that is unique. Overall, the brand is doing good but there is always room for improvement and
expansion. Confidence level in the product is still very high. Over 50% is willing to spend money on the product, even there
is quite a few who are now more health conscious and this means that Coca Cola now really has to start moving in the
direction of healthier product that can assure people safety raise the confidence level in the product.

First impression: About 44.7% of the people liked the product the first time they consumed it. For every product or any
organization, the first impression of their product creates retainers or not. This is very crucial to every organization and to
CCBSA for their products. If the investigation had continued, I’m positive that the number would have risen. This show that the
organization has managed to create that long lasting impression of the product that means more customers keep on coming
back for some more.

Taste is everything. CCBSA has managed to create that original unique taste that consumers can relate to and are not willing to
substitute it for some that taste alike. Many companies have tried to copy this unique taste but, with all the efforts to emulate,
people still vouch for the original taste. This increases brand loyalty and also more retainers and eventually more sales and
revenue.

Approximately 62% of the consumers are impressed with the quality of the product. Quality is everything to a product. This has
had almost everyone, every class of the society wanting to be connected and associated with the brand. If it wasn’t for the
quality, coca cola would be having most of its customers from the conservatives’ segment or group of people. Even though the
health issues keep on rising against the giant but, they still manage and are trying very hard to come us with the best quality of
a product.

About 75% interviewed prefer the brand to Pepsi. this is something great because with this information we can even tell
how the brand is going to perform, moving in the right direction. Because the brand tries to associate itself and be more
appealing to the youth, which most of the purchasing power as South Africa’s working class is mainly populated by this age
group, it also means a larger market share as the young population keeps growing as well as its customer base. even though

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Marketing planning 39

the innovation stats seem to be high, Coca Cola has not really done much when it comes to product innovation and Pepsi
has been trying to cover that ground. What it means is that if the brand does not do much in this area, it is possible that it
could quite a number of customers and territories hence realizing a drop in the market share.

4. Corrections and alterations


This is the stage where if there is any mistake or error that needs to be corrected is dealt with to insureensure that
we stay on course or in the right path to fulfil our main goal.

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Marketing planning 40

BIBLIOGRAPHY

 Published by Rothschild advised SABMiller. Nomura International and NLA advised Coca-Cola Sabco.https://www.coca-
colacompany.com/press-releases/the-coca-cola-company-sabmiller-and-coca-cola-sabco-to-form-coca-cola-beverages-
africa

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 https://www.amazon.sg/Theories-Technique

APPENDIX

 Vinod N. Patel - Theories and Techniques of Marketing Management (2010) chapter 5


 Coke vs. Pepsi: The Cola Wars in South Africa during The Anti-Apartheid Era Published by John Kirby Spivey

42

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