"New Coke" "New Coke"

1he 8|ggest Market|ng 8|under 1he 8|ggest Market|ng 8|under

resented 1o
rof Supr|ya 8hut|an|
resented by
1arang 8ahet| (3)
Saumya Na|r (2S)
ratyancha Suryavansh|(S9)
Coca Coca co|a co|a
O CocaCola was lnLroduced ln 1886
O Coke held Lhe ma[orlLy of Lhe cola markeL share and had
galned world fame
O lLs exlsLence sLreLched back Lo more Lhan a cenLury
O lL managed Lo aLLaln huge cusLomer shlp wlLh Lhe
passage of Llme
ev|at|on to New Coke ev|at|on to New Coke
O 9epsl was qulckly galnlng momenLum ouLselllng Coke ln
Lhe supermarkeLs
O Coke declded Lo conducL a markeL research sLudy Lo
deLermlne whlch formula of cola Lhe consumers
preferred
O 1he deslgn of Lhelr research pro[ecL conslsLed of a bllnd
LasLe LesL
O Analyzlng Lhe prlmary daLa collecLed revealed LhaL Lhe
ma[orlLy of consumers preferred a new sweeLer formula
over boLh Lhe Coke and 9epsl formula
O 1hls concluslve flndlngs persuaded Coke Lo devlaLe from
Lhelr LradlLlonal formula Lo "New Coke"
O CocaCola launched new Coke ln Aprll 1983 wlLh Lhe
punch llne Catch the wave
O new coke was as a revlsed verslon wlLh sllghL
dlfferences ln Lhe lngredlenLs used ln Lhe orlglnal Coca
cola
O WlLh an efforL Lo produce dleL coke Lhe CocaCola
Company made Lhe blggesL ever markeLlng blunders
cost|y fa||ure cost|y fa||ure
O lL was a well planned and researched pro[ecL And noL a
hasLy declslon
O CocaColas mosL senlor execuLlves commlssloned a
secreL efforL named ro[ect kansas" Lo LesL Lhe
perfecL new flavor for Coke lLself
O urveys LasLe LesLs and focus groups were carrled ouL
and LargeLed Lo ensure Lhe success of reformulaLed
coke
O lL was planned Lo be launched ln Lhe markeL afLer
analyzlng Lhe publlc reacLlon and feedback regardlng
Lhe new Coke
O Coca Cola performed markeL research for a perlod of
Lwo years and spenL an enormous amounL of $4 mllllon
Lo compare Lhe LasLe of new Coke versus 9epsl and old
Coke
O AfLer performlng 200000 bllnd LasLe LesLs lL was
concluded LhaL people preferred Lhe LasLe of new Coke
over any oLher avallable beverage
Jhat went Jrong !!!!!!!!! Jhat went Jrong !!!!!!!!!
O f Lhe 200000 consumers who Look Lhe LesL however
only 30000 or 40000 acLually LasLed Lhe new formula
whlch was flnally lnLroduced
O MosL consumers slmply had no ldea LhaL Lhelr
preferences were helplng Lhe Coca Cola company Lo
declde wheLher lL should lnLroduce a new formula for
Coke
O 8esldes conducLlng Lhe LasLe LesLs Lhe company also
surveyed a dlfferenL seL of consumers Lo see wheLher or
noL Lhey favored Lhe Coke change ln concepL
O Coca Cola's markeLlng research also falled Lo conslder
consumerbuylng paLLerns
O 1herefore ln assesslng consumer oplnlons Lhe
company gave all Lhe responses equal welghL
O CocaCola Company also made a mlsLake by falllng Lo
noLe LhaL many u consumers sLrongly favor conLlnulLy
and LradlLlon over novelLy
O 1he resulL of Lhe swlLch was an even greaLer drop ln
Coca Cola's sales
O Consumers were furlous wlLh Lhls declslon refuslng Lo
buy Lhe new Coke alLhough Lhe LasLe LesLs proved
oLherwlse
O 1hey reallzed LhaL Lhe problem lled ln Lhe ob[ecLlve of
Lhe LasLe LesL sLudy
O Coke focused Loo narrowly on Lhe physlcal aLLrlbuLes of
lLs producL (Lhe LasLe) whlle lgnorlng Lhe psychologlcal
lmpllcaLlons such as brand loyalLy
O 1he LasLe of Coke clearly wasn'L Lhe problem buL
perhaps lL was Coke's ablllLy Lo peneLraLe lLs markeL and
relnforce lLs brand lmage
easons easons
O 1he dlfference ln LasLe was a ma[or reason
O 9eople consldered lL Lo be anoLher var|ant of the
parent beverage
O 1he wrong framlng of quesLlons for markeL research
ylelded wrong resulLs whlch proved Lo be faLal
O Coca Cola had lgnored Lhe sent|menta| va|ue whlch lLs
loyal Amerlcan consumers had Lowards Lhe brand
O urlng Lhe overall launch of Lhe producL Coca Cola had
lLs comp|ete focus on the product and neg|ected the
emphas|s on the brand
Conc|us|on Conc|us|on
O 1he Coca Cola Company spenL a loL of Llme and money
developlng dlsLrlbuLlng and markeLlng -
O 1hey dlscovered LhaL Lhelr cusLomers were loyal Lo old
Coke
O Coca Cola drlnkers are noLorlously loyal and had
absoluLely no lnLeresL ln swlLchlng Lo a newer verslon of
Lhelr favorlLe producL
O 1he moral of Lhe sLory here ls LhaL change [usL for Lhe
sake of dolng someLhlng dlfferenL lsnL a sound
markeLlng sLraLegy
1nNk CU