the new coke debacle

8/12/2019 The new coke debacle

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BACKGROUND OF COCA-COLA INTRODUCTION TO THE CASE

LAUNCH OF NEW COKE

REASON FOR LAUNCH OF NEW COKE AFTER LAUNCH REACTION

EFFECT OF NEW COKE

RELAUNCH OF COKE CLASSIC


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Coca-Colais a CARBONATED SOFT DRINK

The name coca cola was suggested by john

pembertons.

Started in 1886 grabbing the marketof USA in 1895 and expanding up to

200 countries


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Our case is about the new cokedebacle,which was introduced by coca cola onapril 23, 1985

Its a sweeter version of soft drink named newcoke withdrawing its traditional 99 yrsformula.


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Coca-Cola launched New Coke in April1985 with the punch line 'Catch thewave'

Change in Coke's formula waspublicized through the television andnewspapers

Annoncment reached more than 80%of Americans within 24 hours


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LOOSING OVERALLMARKET SHARE- TO DEFEND ITS POSITION AS THE MARKET

LEADER

TO IMPROVE BRAND IMAGE

11%

89%

1970 S

COCACOLA

OTHERS

5%

95%

1984

COCA

COLA

OTHERS


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CURIOUSITY AMONGST CUSTOMER TO TASTEIT

INITIAL RESPONSE REPORTED A WIDEACCEPTANCE

TASTED SIMMILAR TO PEPSI

NEW COKE CONSIDERED AS ME TO-PRODUCT

PEOPLE SAID ORIGINAL COKE HAD A UNIQUETASTE


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WORSE AS COMPARED TO ORIGINAL COCA-COLA

FACED A LOT OF CRITICISM BY CONSUMERS

-received more than thousand calls per week

-people started substituting coke with pepsi

-Tasted similar to sever water,furniture polishand two days old pepsi


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Loss of existing customers

More decline in the market

share

Rival emerged victorious

Re launch of the classic coke

Black marketing increased


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PEPSI HAD MORE MARKET SHARE THENCOMBINED MARKET SHARE OF NEW COKEAND COKE CLASSIC


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The company soon realized the mistake theymade and the old flavored was launched again ascoke classic.

Due to the protest from huge number ofconsumer they revert back to its original formula.


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Strong & Loyal Customer base, emotionalconnect.

Taste was never the focus, or for that matter, theissue

Coke played into Pepsis hand, by competingon taste

Coke tried to compete with Pepsi on their turf

Pepsi ensured customers saw this as Cokeadmitting defeat


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Marketers researchers felt that coca cola musthave gone for the focus groups testing a newproduct at first and indvisual interviews toverify and quantify the results.

TYPE OF RESEARCH COCA COLA SHOULDHAVE ADOPTED

PRIMARY RESEARCH-EXPLORATORY RESEARCH


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PRESENTED BY- HARSH AND ASHISH

the new coke debacle

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