The Failure of Coca-Cola's Marketing Catastrophe in the Face of 'The Pepsi Challenge'

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Coca-Cola's New Coke Failure Introduction When Pepsi launched a campaign to challenge Coke's market share, known as "The Pepsi Challenge", executives at Coca-Cola felt they had to do something to be more competitive. The campaign was attributing to a slow but steady loss of market share especially among younger demographics. By 1984, researcher as Coke had finished reformulating a new recipe for the famous carbonated beverage and had thought that the new formula would outperform both the original Coke as well as the Pepsi competitor. The new formula was subject to countless bind taste tests and reported comparatively good results in the testing sessions. However, the testing procedures made some bad assumptions that eventually led to the new product opening being counterproductive. This case analysis will look into some of the details that are attributed to Coke's marketing catastrophe. Background After World War II, the iconic American brand Coca-Cola maintained an incredibly large market share; estimate to be roughly sixty percent of the total beverages. However since that peak the brand faced a series of challenges that diminished its brand's market share. Some of the reasons for this originated from internal sources. Coca-Cola's parent company steadily increased their product lineup by adding new flavors and brands of soft drinks. For example, Diet Coke was one of Coca-Cola's top five competitors in the 1980s. However, despite the fact they had greater

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