Introducing New Coke Essay

1. Consider Coca-Cola’s advertising throughout its history. Identify as many commonalities as possible for its various ads and campaigns. (For a list of Coca-Cola slogans over the years, check out http://en.wikipedia.org/wiki/Coca-Colaslogans.)

However, Pepsi began to slowly catch up to their status and in the early 1980s, Coke had only a one percent lead over Pepsi in exclusive drinkers. Coke was very concerned with this because there product was more readily available than Pepsi’s and they spent more than $100 million more annually on advertising and they really didn’t want Pepsi to usurp their rank as the leading cola. However, Pepsi had been running commercials on television where they put Coca Cola and Pepsi head-to-head in a blind taste test that came to be known as the Pepsi Challenge. In this challenge, Pepsi had faithful coke drinkers take a sip from two different glasses and pick which sample they preferred. One of the cups was marked with a “Q” and the other was marked with an “M.” They consistently chose the cup marked “M,” which would be the cup holding Pepsi. When Coca Cola heard of this challenge, they immediately wanted to prove it to be false, so they conducted blind taste tests themselves. However, when their tests were performed, they got the same results as Pepsi, and the majority of the testers, 57%, preferred Pepsi over Coke. These results really concerned Coca Cola, and they began to do a plethora of other market research projects. They couldn’t figure out exactly what it was that made testers prefer Pepsi, but eventually decided that it must be the taste. From this came the creation of what came to be known as “New Coke.” Coca Cola had their scientists experiment with the secret

Coca-Cola meanings came from various sources, most notably the changes in the culture in the United States in the 1900s. The company quickly adapted to the social and cultural changes like pop culture; throughout artwork, they were able to reach the heart of America’s youth. The company was able to take advantage of the current events; most notably the world war which helped the company’s being global.

Marketing strategies began to take broader dimensions as the soft drink industry continued to expand and became more complex. In 1976, Pepsi introduced the Pepsi Challenge in its campaigns, a moved that directly challenged Coca-Cola’s longstanding dominance. In 1985, responding to the pressure of the taste tests, which Pepsi always won, Coca-Cola decided to change its formula. This move set off a shock wave across America. Consumers angrily demanded that the old formula be returned, and Coca-Cola responded three months later with Classic Coke. Five years after the infamous Coke fiasco, the Coca-Cola

Rivalry: The rivalry between Coca-Cola and Pepsi is extremely high; however, both companies continue to remain profitable. Prior to the 1980s, pricing wars negatively affected profitability for Coca-Cola and Pepsi. After Coca-Cola renegotiated its franchise bottling contract and both companies increased concentrate prices, the rivalry began to focus on differentiation and advertising strategies. Through creative advertising campaigns, such as the “Pepsi Challenge” where Pepsi ran blind taste tests to demonstrate that consumers

Coca-Cola, as the leading brand in the world, has the highest position in soft drink industry. Its outstanding product “Coke” has been won the heart of everyone. However, in this case, we realize that they had a failed attempt at introducing the new product called New Coke in 1985.

The competition between Coke and Pepsi reached its peak to become a real war battle by the year 1980. This war had affected the industry profit for both concentrate producers and bottlers, while the effect of bottlers was much higher. After the successful “Pepsi Challenge” (blind taste tests: sales shot up) in 1974, Coke countered with rebates, retail price cuts and significant concentrate price increases. Pepsi followed of a 15% price increase of its own. During the early 1990’s bottlers of Coke and Pepsi employed low price strategies in the supermarket channel in order to compete with store brands. The concentrate producers were always able to increase their profits by increasing the concentrate price, while the bottlers, especially the

In the Pepsi Challenge in the 1980’s, customers took a blind sip test of Coca-Cola and Pepsi and most people ended up favoring Pepsi. Coca-Cola became worried and started to alter their drink to make it sweeter however after the change people disliked the new Coca-Cola so they changed it back. Though after the challenge people thought

Exchange rate gains or losses are brought to account in determining the net profit or loss in the period in which they arise, as are exchange gains or losses relating to cross currency swap transactions on monetary items. Exchange differences relating to hedges of specific transactions in respect of the cost of inventories or other assets, to the extent that they occur before the date of receipt, are deferred and included in the measurement of the transaction. Exchange differences relating to other hedge transactions are brought to account in determining the net profit or loss in the period in which they arise. Foreign controlled entities are considered self-sustaining. Assets and liabilities are translated by applying the rate ruling at balance date and revenue and expense items are translated at the average rate calculated for the period. Exchange rate differences are taken to the foreign currency translation reserve.

In the early 1980’s, there was a close rival between Coca-Cola and Pepsi making COca-cola envious of the attention Pepsi was gaining on them, which made them puzzled when COca-Cola modified their formula to catch up with Pepsi in the taste

In The Onion 's satirical article “Ad Industry Veterans Honored With Cola War Memorial” ridicules how serious American’s had taken the advertising between Pepsi and Coke. The person wrote this because they are pointing out how serious this was to Americans and how they should have instead paid attention to important matters that were actually happening. The critic used satire to convey to American people how unimportant it truly was at the same time comparing it to something that was truly important, the real war at the time, and used ironic tone in order to correct the way of thinking of it being a major event. The Onion used burlesque satire to express their point to their American audience and

The company known as Coca-Cola today was started in September of 1919, but the first Coke brand was served as early as 1886. Since that time it has grown to be one of the most globally recognized brand names with a stock value of $167 billion. Coke’s plan has always been developed with the future in mind. Right away the company realized that it was more profitable to manufacture the concentrate used to make carbonated drinks than to bottle it. From that point on they saw the entire world, not simply the originating country, as their desired market. It seems only practical that the company should pursue this agenda until conquered then focus the effort on expanding into different product lines. This logical

big market share, such as Pepsi Cola, Mt.Dew, and so on. I like to drink Coke

A company must be in tune with what consumers want. Consumers get bored, and often want new products. In order to meet the wants and needs of customers a company must introduce new products or services (Bateman &Snell, 2003). Coca-Cola, in an effort to meet customer's needs, created C2 which is a low carb soft drink. This was in response to the low carb diets and the demands of consumers. They also intend to launch a new soft drink called Coca-Cola Zero. This is a zero calorie soft drink. Knowing the importance of innovation the Coca-Cola Company has always strived to create new products. They already have Coke with Lime, Lemon, Vanilla and Cherry. Raspberry will be the new flavor added to Coke coming soon. They also have plans to sweeten Diet Coke with Splenda, a sugar substitute that is safe for

Innovation is much more than taking a current beverage and repackaging it with different flavors. It also means more than boosting Coca-Cola Classic sales (Cravens, 2009). “New formulations could potentially serve as the basis for future advertising efforts, while providing shelter from health critics and politicians who blame soda for the nation's obesity epidemic” (Schultz, 2013). New formulations and brand extensions will help consumers that are no longer purchasing the brand to try new flavors or brand products, have a positive experience, and then hopefully return to the purchasing of previous products also (Bloomberg Businessweek, 2005). The innovation strategy should strengthen the brand.