In 1980s Coke’s flagship product’s share was on the decline and Pepsi’s shares were on the rise. The results were overwhelming. One protest group in particular gained national attention. To understand why this potentially disastrous decision was made, it is necessary to appreciate what was happening in the soft drinks marketplace. One of the most well-known marketing flops happened in 1985 with New Coke, a soft drink designed to replace the original Coca-Cola flavor. Failure of new coke case study rating 5-5 stars based on 168 reviews Essay on the body clock hr related case study pdf chori essay essay kharche mein roj karu su favorite season of the year essay , essay about aama in nepali essay on the body clock research paper on abstract algebra pdf adorno essay als form pdf national tree of india essay. ‘I can’t believe it.’. For more than 30 years, Coca-Cola Company’s “New Coke” recipe has been shorthand for a marketing failure. Many people have selective memories … Launching New Coke. “New Coke seems to retain the essential character of the original version … It tastes a little like classic Coca-Cola that has been diluted by melting ice,” Sheraton explained. Abstract During the 1980’s Coca-Cola was faced with a potentially company killing problem. Coca-Cola announced Tuesday it was bringing back New Coke more than 30 years after the product launched and was pulled from store shelves 79 days later. Coca-Cola spent over four million dollars developing, testing, and marketing New Coke. Gay Mullins, president of the Old Cola Drinkers of America, holds a six-pack of the original formula Coke which is being brought back to the market as Coca-Cola Classic, in Bellevue, Wash., July 24, 1985. Share; Tweet; Coca-Cola is a brand which became a household name all over the world. The History of New Coke Politicians declared the announcement an historical moment in American history and … "These two products, Pepsi and Coke, have been going at it eyeball to eyeball, and in my view the other guy just blinked," said former PepsiCo CEO Roger Enrico in 1985. A very interesting element of the return of New Coke for the first time since its introduction in 1985 abd eventual discontinuation as Coke II … To download this case click on the button below, and select the case from the list of available cases: » Marketing Management Short Case Studies » Marketing Case Studies** » Case Studies Collection » View Detailed Pricing Info. Having already lost on taste, the last thing Coca-Cola could afford was to lose its number one status. The new soda consistently beat out the old version across the country—even in Coca-Cola’s ancestral base, the South, where New Coke held a narrow 52-48 edge. on. They needed to understand how people would react when the familiar Coke they loved would be discontinued and replaced by a shiny … Coca-Cola responded by doing extensive market research that confirmed that consumers preferred a sweeter version of the original recipe. ‘Some critics will say Coca-Cola made a marketing mistake, some cynics will say that we planned the whole thing,’ said Donald Keough at the time. Why did New Coke fail when Coca Cola spent $4 million on development? Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, What is a Brand Portfolio? Fifty years previously, the Pulitzer Prize winning editor of a Kansas newspaper, William Allen White had referred to the soft drink as the ‘sublimated essence of all America stands for — a decent thing, honestly made, universally distributed, conscientiously improved with the years.’ Coca-Cola had even been involved with the history of US space travel, famously greeting Apollo astronauts with a sign reading ‘Welcome back to earth, home of Coca-Cola.’. Failure of New Coke : Details Case Code : CLMM020 Publication date : 2005 Subject : Marketing Management Industry : Food and beverages Length : 04 Pages Price : Rs. In all these blind (unbranded) taste tests the New Coke outperformed both Pepsi and existing Coke. Pepsi was stealing a portion of the younger generation with their advertising campaign, and they proved that … It was losing market share not only to Pepsi but also to some of the drinks produced by the Coca-Cola company itself, such as Fanta and Sprite. 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