Cola Wars: Coca-Cola vs. PepsiCo
The Coca-Cola Company has enjoyed a long and successful history; however, it has made mistakes. Though success has not always come easy or cheap, Coca-Cola has maintained a large loyal consumer base. As an icon in America and around the world, the company can be credited for listening to and catering to the requests and needs of its consumers. This is why its attempt to launch new flavors must be carefully considered to ensure not only acceptance by the target market, but continued loyalty to the brand. While Coke and Pepsi are the major players in the soft drink competition and by far have seen the most success, both have struggled in competition with each other. Recently both companies have introduced their products to the foreign market, but in order for either company to turn a profit, there is a large amount of problems they must need to consider before start launching their products.
In the new Coke fiasco, how could Coca-Cola's marketing research have been improved? Be a specific as you can.
For the most part, Coca-Cola followed standard market research procedure for the development of a new product or the modification of an existing one. Before Coca-Cola launched 'New Coke' they had invested US$4,000,000 in market research and undertook 200,000 blind taste tests. These blind taste tests were the basis of the launch of 'New Coke' in 1985. Sales of the New Coke were very low and the Coca-Cola Company was receiving many phone calls and letters from angry customers who demanded the old formula back. The publics were unhappy with the new taste and even unhappier that they were no longer able to obtain the original product. Two months later, company responded to the public's demands and re-introduced the original Coke formula. However, when they went back to the original formula, they renamed Classic Coke/Coca Cola Classic. The classic taste continues its market lead over rival Pepsi. Therefore, the...
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