http://www.bbc.co.uk/news/magazine-19550067
The above BBC article mentions that although Coca-Cola wants global consumers to perceive its brand as a “global brand”, many consumers (particularly in the Middle East and parts of South America) continue to attach Coca-Cola’s brand with “America” and the “west”. This brand association shows how a company cannot always control how consumers perceive its brand. However, Pepsi another American company does not have a strong brand association with “America” and the “west”. Consequently, Pepsi has had an upper hand in many markets, like in the USSR, and currently in the Middle East and other parts of the world, where there is strong anti-American sentiment; which has resulted in the boycott or discontinuation of Coca-Cola. Pepsi’s upper hand shows that brand perception is important because it ends up defining the product(in the mind of the consumer) and is a strong determinant of the success of the product. This is why companies spend a lot of money on shaping its brand identity.
However, in the USA or in countries where there is a strong support for America, Coca-Cola’s brand association with “America” could be a point-of-difference, which could help sales.