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About this document
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- 19 pages
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- $19 one-time, yours to keep
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- Subject
- Business, Business Management, Marketing
This case study covers the 1985 launch of New Coke, its market research, and the public backlash. It discusses the marketing mistakes and lessons learned. It is useful for understanding marketing strategy and business decisions.
What's inside
- The launch of New Coke in 1985
- Market research and public backlash
- Marketing mistakes and lessons learned
- The history of Coca-Cola's market share
- The role of innovation in business strategy
- The impact of consumer emotions on marketing
Who it is for: Students of business, marketing and management. (Undergraduate)
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Summary
The New Coke launch in 1985 was a major marketing decision by Coca-Cola. Students learn about the strategy, its failure and the company's response.
The Marketing Blunder
Coca-Cola replaced its old formula with a sweeter variation, New Coke. The company spent $4 million on market research, but the launch provoked a national uproar.
History of the Change
The decision to change the formula came after taste tests showed a preference for the new formula. The change was announced in April 1985, with a significant advertising campaign.
Consumer Reaction
Consumers reacted strongly against the change, leading to thousands of calls and letters. The company had to decide whether to continue with New Coke or revert to the old formula.
The Aftermath
The company withdrew New Coke and reintroduced the old formula as Classic Coke. The episode helped define Coca-Cola's brand values and its distinct identity from Pepsi.
Key terms
- New Coke
- The sweeter variation of Coca-Cola introduced in 1985.
- Classic Coke
- The original Coca-Cola formula reintroduced after the New Coke failure.
- Market research
- The process of gathering information about consumers' preferences.
- Sensation transference
- The unconscious addition of reactions to packaging into the assessment of taste.
- Focus groups
- Groups of people whose reactions are studied to determine the potential success of a product.
- The four Ps
- Product, price, place, promotion: the four key elements of a marketing mix.
Questions this document helps with
- What marketing strategies did Coca-Cola use for New Coke?
- Why did consumers react so strongly to New Coke?
- How did the New Coke launch affect Coca-Cola's brand identity?
Summary written with AI from the document's text.
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