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Coca-Cola launched a new sweeter formula called New Coke in 1985 to boost declining market share against Pepsi. However, consumer backlash was intense as people strongly preferred the original taste. Sales of New Coke quickly dropped.
By July 1985, intense public pressure and complaints from bottlers led Coca-Cola to re-introduce the original formula as "Coca-Cola Classic". This was a marketing success and sales rebounded.
The New Coke launch highlighted Coca-Cola's failure to understand consumers' deep emotional attachment to the original drink. The brand had come to represent more than just taste. This strategic misstep was an important lesson for Coca-Cola.
Coca-Cola launched a new sweeter formula called New Coke in 1985 to boost declining market share against Pepsi. However, consumer backlash was intense as people strongly preferred the original taste. Sales of New Coke quickly dropped.
By July 1985, intense public pressure and complaints from bottlers led Coca-Cola to re-introduce the original formula as "Coca-Cola Classic". This was a marketing success and sales rebounded.
The New Coke launch highlighted Coca-Cola's failure to understand consumers' deep emotional attachment to the original drink. The brand had come to represent more than just taste. This strategic misstep was an important lesson for Coca-Cola.
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Coca-Cola launched a new sweeter formula called New Coke in 1985 to boost declining market share against Pepsi. However, consumer backlash was intense as people strongly preferred the original taste. Sales of New Coke quickly dropped.
By July 1985, intense public pressure and complaints from bottlers led Coca-Cola to re-introduce the original formula as "Coca-Cola Classic". This was a marketing success and sales rebounded.
The New Coke launch highlighted Coca-Cola's failure to understand consumers' deep emotional attachment to the original drink. The brand had come to represent more than just taste. This strategic misstep was an important lesson for Coca-Cola.
Copyright:
Attribution Non-Commercial (BY-NC)
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Als PPTX, PDF, TXT herunterladen oder online auf Scribd lesen
The original Coke was developed by John Pemberton in
1886. It was based on a combination of oils, extracts from coca leaves & various others additives including caffeine. On may 8,1886 coke was released in the market. The first advertisement of the coke appeared in ³ tlanta Journal´ on may 29, 1886. Pemberton spend huge amount on advertising & sell 50 gallons of syrup at $1 per gallon To make the drink popular it was served free for several days ± after this, drink got acceptance. fter the Pemberton¶s death, his friend ³ sa Candler´ & a wholesaler druggist acquired stake in the company. Positioning of coke:- In 1895 coke was advertised as a drink which relieved one of mental & physical exhaustion & cured headache. Repositioning of coke:- later coke was repositioned as a refreshment drink. ) (!' +#& )$!) ,% )! !++%% ) ! $#0% !-#) ($ $ ' 4##' ) $%!)$2 #% ) ($ $ ) (!' ) 5%& 6 ! !'% (!' %0')%%& !0!') ,% ($ $ (!' '%))%& #)'&% )$% #) 6 ,% !0%%& ) %&# % !-#) + !++%% 31 78 ,%2 -!1 (!' '& ) %') &#++ ($ ), ! -!4 &% ' + %')!3'$0 +%0 &%!)-%) ) -!,% ,% #! *%'%!'2 COMETITOR
Goizueta¶s µfocus strategy¶ could not stop the decline in
Coca-Cola¶s market share, which fell from 24.5% in 1984.
Coca-cola¶s distribution wider than Pepsi, which had
enabled it to be the leader in the soft drinks industry yet in 1984 Coca-cola¶s overall market share had dropped from 9.8% in the early 1970 to 4.9%.
This became a major cause of worry for the top
management of coca-cola. During the middle of 1983, the idea of reformulating 99- year old Coke formula struck Goizueta. The purpose was to increase Coca-Cola¶s market share as well as to defend its position as the market leader. thorough market research was conducted which included interviews with about 2,00,000 consumers. In some cases, response was contradictory. fter `lind taste test it was discovered that many people preferred Pepsi to Coke because Pepsi was sweeter. Coca-Cola felt that the sweeter taste would appeal more to teenagers and youth, it decided to launch a sweeter version of Coke, the taste would be similar to Pepsi. Coca-Cola also conducted a Focus group research that revealed that many people were willing to try New Coke. `oth the surveys (Focus group and Survey research) indicated consumer dissatisfaction and their results were contradictory to each other.
Coca-Cola ignored it and decided to launch New Coke
based on results of the blind taste tests. The launch and its aftermath
Coca Cola launched new coke in pril 1985 with the
punch line ³Catch the Wave´. This change in coke¶s formula was publicized through the TV and news papers. The announcement reached more than 80% of the merican population within 24hr. The initial response to the product was encouraging with distributors reporting a fairly wide acceptance of it. nalyst come up with a reason that people had not tasted the new coke so, there is curiosity to taste the new coke that is why the sales went up initially. Slowly consumer found that its taste is similar to that of Pepsi and the sales starts declining, and distributors began to accept less stock of new coke, later they did not stock any because of poor consumer response. majority of Coke lovers criticized the company¶s act of changing the 99 year old formula. Some old coke lover said that original coke had a unique taste that was stronger than new coke. One of the coke lover also said that company has spoiled the 99 year old soft drink and betrayed the nations trust. `y the end of May 1985, the scenario had worsened with consumer response at its lowest New Coke what went wrong?
nalyst attributes the failure of new coke to several
factors. Some felt that Coca Cola has failed to understand the consumer¶s emotional attachment with coke. The attachment with the brand was so strong that one of the coke lover went to the extent of wishing his bones and ashes to be preserved in coke cans after his death. `ut after the launch of new coke, he said he did not want to be associated with coke anymore. nother consumer said God and Coke is the two important things in his life. Pepsi saw opportunity. nalysts also felt that people had a high regard for Coca Cola because of its innovative ideas, excellent products launch and the importance it accord to people and the environment. lso, Coca-cola was the pioneer in recycling plastic bottles. Some analyst felt that the findings of the market research group were erroneous and late. The research is either in an inappropriate manner or was interpreted incorrectly. ccording to analyst the research could not have measured the type of consumer feelings that were evoked from reformulation. Coca cola carried out individual interview first then undertook the focus group testing. What went right? ,% $'% ) -*% +(!& %''% ) %! -!,%) %''#% !)$% )$! &%+%&0 )$% %<')0 &# )'2 $%1 $!& )$% 3%') 6 6 +!* %% &%'0 )$% %( &# )2 <)%'*% )!')% )%')0 !& *%)%! !*! (%% '#0$) !& ! )%& ) )$%- $!*0 ! 3%))% &# )2 The resultX $%% (!' )! ! %)! % !& )$% &# ) && (% )/' +') (%%,' '!%' # 8 -!%& ) %*#' 1%!2 =(%*% #3 #)!0% 0%( ()$ 0#' )%')0 %( ,% >%'% !1 ')0 )$% '#)$?2 1 #% . )$%% (!' %#0$ #3 %''#% !& -!)' +- 3))0 '#%' )$!) ,% %<% ' (%% #&% %''#%2 #1 . ,% 3#0$) !'' ,% 3! , ) )$% -!,%)2 New Coke after Coke Classic )$% '$) # )$% %)&# ) + & ,% '!*%& ,%@' '!%' #-3%' !& 3#0$) ) 3! , )$% 0& 0! %' + -!1 #')-%' !& 3))%'2 | ! ) -!,%) )( ,%' ($%% '# $ !' $!& 3%% -%)%1 ++ )$% )!3% -%% -)$' 3%+%2 !'' ,% &&@) %%& -# $ $% ()$ ! A%& $)% !& #A !-!0 '$( !'0 )$% |-% ! *)#%' -!1 + )$'% ($ $!& !-%& + )' %)&# ) $!& )%&1 %-&%& )$% -!1 ) %-3&%&2 A$% %') #') ) %))%A #& 0% 3% #'%&D m