The Failure of the New Coke
• Coca Cola • Coca Cola Market Position • Research Process • Defining the problem and Objectives • Develop the Research Plan / Collect the information • Research Results • Analysis of the Failure
Think of a brand success story, and you may well think of Coca-Cola. Indeed, with nearly 1 billion CocaCola drinks sold every single day, it is the world’s most recognized brand.
Coca Cola Market Position
• Coca Cola held no.1 marker position for years
• Pepsi ‘the drink of youth’ was able to strongly position its brand against the old and classic image of its competitor Coca Cola • By 1983, Pepsi had begun to outsell Coke in supermarkets. • By 1983, Coca cola’s market share had declined to from 60% to under 24%.
As a result
In 1985, the Coca-Cola Co. announced a decision that would rock the world. The old Coke formula would be taken off the market and replaced with a smoother, sweeter taste
Define the problem and research objective
Develop the research plan
Collect the information Analyze the information Present the findings Make the decision
Defining the problem & Research Objectives
• Market analysts in the context of health- and weightconsciousness, believed that baby boomers were more likely to purchase diet drinks. Therefore, any future growth in the full- calorie segment had to come from younger drinkers, who favored Pepsi and its sweetness. • Coke executives decided to develop a new formula and called it the NEW COKE.
Develop the Research Plan
• Coca Cola performed market research for two years and spent $4 million to check the market acceptance for the taste of the New Coke • Moreover, to confirm whether or not they favored the Coke change in concept
• Focus Groups • Taste Tests ( 200,000 blind taste tests )
Marketing Research Findings
• a Majority of the selected consumers...
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