International Marketing Research: Tax Regimes, Programmes to Attract Foreign Companies, and Marketing Mix of Red Bull in South Africa

International marketing research 0
International
marketing research
Student’s Name
10/9/2019

International marketing research 1
Contents
Introduction................................................................................................................................2
Tax Regimes and Rates..............................................................................................................2
Programmes to attract the foreign companies............................................................................3
Introduction of company............................................................................................................4
Entry of Red Bull in South Africa..............................................................................................5
Marketing Mix of Red Bull........................................................................................................7
Product Mix............................................................................................................................7
Price Mix................................................................................................................................7
Place Mix................................................................................................................................8
Promotion Mix........................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

International marketing research 2
Introduction
In order to manage the complexities in the business environment, it becomes imperative for
the companies to analyse the macro-environmental factors that majorly affects the
functioning of the company. These factors include tax rates and regimes and socio-cultural
factors. It also includes the restrictions and the policies designed by the government to
control the operations of the business. The additional paragraphs of the report will include the
tax rates and regimes in South Africa for the energy drink business and will also highlight the
programmes to attract foreign companies. It will also cover the marketing mix and current
operations of Red Bull in South Africa (Bosire et al, 2019).
Tax Regimes and Rates
It is recorded that South Africa suffers from a high rate of diseases which includes diabetes
and other non-communicable diseases. The population of South Africa suffers from obesity
and turning into a major concern. This, in turn, creates pressure on the government to lessen
the ingestion of sugary drinks and improve the health and wellbeing of the citizens. In
consideration of the above issue, the government has imposed 20 % on sugar-sweetened
beverages (Chutel, 2019).
This tax is imposed on the drinks that contain additional caloric sweeteners such as high
fructose corn syrup, sucrose or the fruit–juice essences. It includes fruit drinks, energy drinks,
sweetened ice tea, soft drinks and lemonade. The tax policy does not consider the beverages
that contain intrinsic sugars. A tax rate of 2.29 cents is imposed at per gram of sugar. It is
analysed that 20% price increase on sugar-sweetened beverages will directly impact the

International marketing research 3
consumption and purchases and will decrease the obesity by 3.8% in men and 2.4% in
females (Republic of South Africa, 2018).
The imposition of the sugar-sweetened tax majorly affects the sales of the company because
it develops the need to increase the cost of the energy drinks and will also lead to a loss of
employees. The government will impose a higher tax rate on the producers who does not
apply nutritional labelling by assuming higher levels of sugar to move the producers towards
nutritional labelling (Arthur, 2018).
Programmes to attract foreign companies
In consideration of the beverage industry, South Africa is considered as a country that has
huge market potential due to the growing middle-class population and consists of the affluent
customer base. It is considered as a region’s main manufacturing centre and is a foremost
service destination. The country is well known for its world-class infrastructure and
accessibility (South Africa Investment Conference, 2018).
The government has focused on designing various programmes that help in delivering the
most promising emerging market that offers an exclusive amalgamation of developed
economic infrastructure and an emerging market economy. The country is gifted with the
progressive financial market structure which in turn creates the opportunity for the foreign
companies to invest in the countries that have a stable political environment and transparent
legal system. The country attracts foreign investors through its availability of vast natural
resources and also has the advantage of the large educated and relatively cheaper workforce.
The government imposes better trade policies that improve the business environment (DBSA,
2013).