Introducing New Coke Essay

616 WordsNov 13, 20123 Pages
In this case of Coca-Cola changing their well established Coke formula and introducing an new one in 1985 for the purpose of gaining more market share; the reason why such decision was made by Coke’s executives was mainly because of a series of marketing campaign conducted by their major arrival - Pepsi. During mid 1970s, Pepsi has ran a the famous “Pepsi Challenge” of blind taste tests on all the commercials to show that the majority preferred Pepsi than Coke based on its teste. By 1977, Pepsi had exceeded Coke’s market share in major restaurant chains and food stores. Under the threat of being taken over by Pepsi and losing the industrial leader position, Coke released their new formulated coke on April 23th, 1985. While the Coke’s new…show more content…
But the company considered, and rejected, planed to keep the old-formula drink in circulation under the name "original" Coke. The taste question was crucial to Coke. But what Coca-Cola executives failed to realize was that there is more to marketing soft drinks than winning taste tests. More than any other product consumers had an emotional attachment to their soft drink brand. I believe from Americans’ point of view, Coke discovered fiddling with the formula of the 99-year-old beverage was probably an assault to their patriotic pride. Here I can quote a saying from Coca-Cola’s President Donald R. Keough to summarize what Coca-Cola has learned: "We did not understand the deep emotions of so many of our customers for Coca-Cola." I think any marketer who plans a noticeable revision of a product must consider the loyalty of its consumers and the possibility that the change will be rejected. To prevent this possibility, marketers should realize that balking at change is a customer characteristic of specific product preferences. Also, in this case, a more sophisticated qualitative and quantitative research could have been conducted and prevented Coke from this mistake. Consumers resist changes for many reasons - brand choice results from a complex set of beliefs, buyers associate products with themselves, buyers do not fit into clear segments. I think the key to all the marketers is to realize the involvement of what a product actually does
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