NEW COKEA CLASSIC BRAND

FAILURE

CONTENTS

• History of Coca Cola

• Reasons for New Coke introduction

• The launch of New Coke

• Relaunch of the Classic Coke.

• Conclusion & Learning

HISTORY• The name coca cola was suggested by

john pemberton’s book keeper frank

Robison.

• In 1887 assa griggs candler bought the

company shares and incorporated it in

1888.

• 1893 coca cola was registered in the

u.s patent office.

• 1895 coca cola is now drunk in every

state in the us

Background

• Trade name of sweetened

carbonated drink

• Originally made with cocoa leaves

and flavored with cola nuts along

with caramel and caffeine

• Started in 1886 grabbing the market

of USA in 1895 and expanding up to

200 countries in 2000

Reasons for new coke introduction

•PEPSI’s Challenge

•Loosing market share

•Brand image affected

PEPSI’S CHALLENGE

• Blind fold Challenge

• A big Success

• Signed up big celebrities

• Taken around the Globe

Loosing market share

• The company had lost its market share , though

remaining competitive

• By 1970 the overall market share had dropped

to 4.9%

• By 1984 the overall market share of the

company dropped to 9.8%

Brand image affected

• The company was not only loosing share to

the rival Pepsi but also to other brand

created by itself.

Example:-Diet Coke went on to become the

most successful consumer product launch

of the 1980s

COKE’S ADVERTISING CAMPAIGN

• Coke launched an advertising campaign

• Praising for Coke being less sweet than PEPSI

• Ads fronted by Bill Cosby

The launch of new coke

• Coca-Cola launched NewCoke in April 1985 withthe punch line 'Catch thewave'

• change in Coke's formulawas publicized throughthe television andnewspapers

Effect of new coke

• Loss of existing customers

• More decline in the market

share

• Rival emerged victorious

• Re launch of the classic

coke

Loss of existing customers

• The existing customers did not like the newcoke in term of its taste and switched toother brands.

• Many of the existing customers boycottedthe New coke , as the production of ClassicCoke was Scrapped down.

More decline in the market share

• An unexpected twist happened in theexisting market of coke

• within 79 days the market share dropped tosuch an extent that it was considered as oneof the greatest American market failure

Rival emerged victorious

Rather than beatingthe rival the strategypaved a way for therival to get morecustomers.

Relaunch of the classic coke• The company soon realized the mistake they

made and the old flavored was launchedagain as coke classic

‘We did not understand the deep emotions

of so many of our customers for coco-cola’

― Donald R. Keough

Coco-cola president

REASON FOR RETURN OF CLASSIC COKE

• PUBLIC EMOTION TOWARDS

CLASSIC COKE

• US HERITAGE DISPLAY ON

THE CLASSIC COKE SUCCESS

• PEPSI GAINED GROUND ON

COLA

PUBLIC EMOTION TOWARDS CLASSIC COKE

• Public outrage was high as Classic Coke was no longer available in the market .

• The US population was emotionally attached towards the Classic Coke.

US HERITAGE DISPLAY ON THE CLASSIC COKE SUCCESS

Coke had spent more than ahundred years convincingthe North Americanpopulation that its productwas an integral part of theirlives, and their veryidentities. To do away withCoca-Cola was violating theiridentity and they weren'tgoing to stand for it, andthey therefore weren't shyabout saying so.

PEPSI GAINED GROUND ON COLA

• By the end of 1985 Pepsihad more market sharesthan the combined marketshare of new coke andcoke classic

• By end of 1987 frommarket cokes share of 3percent it come down 0.1

• THE BIGGEST MARKETINGBLUNDER OF ALL TIME

• Market Research failed in caseof New Coke .

• Coke lost a lot of sales to PEPSI

• Lost market share and also theno.1 status .

.

Conclusion

• All the money , time and skillpoured on new coke could notmatch the deep and abidingattachment towards theClassic Coke .

learnings• CocaCola has learnt that Marketing is

much more than “PRODUCT ITSELF”.

• Before making any changes to the

company or introducing a new

product, it is very important to find all

relevant information related to it.

• You cannot change the taste of your

Flagship brand .

GROUP MEMBERS

• PALLAVI HEGDE

• JAHNAVI RAJANALA

• SHUBHAM MITTAL

• ZUBIN GALA

• UMANG GOEL

• KRISHNAKANT LOYA

QUESTION

&

ANSWERS

THANK YOU