New Coke Perception

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a presentation about the introduction of new coke and its affect on americans,,,,,,

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New Coke Perception

  1. 1. Done by:<br />Ahmed mohammed<br />Abdilaziz mohammed<br />Abdulrahman osman<br />Faisal mohammed<br />Upendo.<br />
  2. 2. introduction<br />History of coca cola<br />What were the effects of introduction<br />Why was the new coke introduced<br />Reason for the return of classic coke.<br />Conclusion in forms of the mistakes learnt<br />
  3. 3. Background<br />The name coca cola was suggested by john pemberton’s book keeper frank Robison.<br />In 1887 assa griggs candler bought the company shares and incorporated it in 1888.<br />1893 coca cola was registered in the u.s patent office.<br />1895 coca cola is now drunk in every state in the us<br />
  4. 4. Background<br />Trade name of sweetened carbonated drink<br />Originally made with cocoa leaves and flavored with cola nuts along with caramel and caffeine<br />Started in 1886 grabbing the market of USA in 1895 and expanding up to 200 countries in 2000<br />
  5. 5. Reasons for new coke introduction<br />Loosing market share<br />Brand image affected<br />Beating the rival<br />
  6. 6. Loosing market share<br />The company had lost its market share though remaining competitive<br />By 1970 the overall market share had dropped to 4.9%<br />By 1984 the overall market share of the company dropped to 9.8%<br />
  7. 7. Brand image affected<br />The company was not only loosing share to the rival Pepsi but also to other brand created by itself. <br /> Example:-Diet Coke went on to become the most successful consumer product launch of the 1980s<br />
  8. 8. Beating the Rival<br />The market share kept declining to Pepsi though the excess vending machine kept the price competitive<br />The market share of coke remained stagnant while the rival kept catching up<br />The taste of Pepsi kept winning the new customers<br />
  9. 9. The launch of new coke<br />Coca-Cola launched New Coke in April 1985 with the punch line &apos;Catch the wave&apos; <br />change in Coke&apos;s formula was publicized through the television and newspapers<br />
  10. 10. Effect of new coke<br />Loss of existing customers<br />More decline in the market share<br />Rival emerged victorious<br />Re launch of the classic coke<br />
  11. 11. Loss of existing customers<br />The existing customers did not like the new coke in term of its taste and switched to other brands.<br />Many of the existing customers boycotted the new coke showing the sign of dislikeness.<br />
  12. 12. More decline in the market share<br />An unexpected twist happened in the existing market of coke<br />within 79 days the market share dropped to such an extent that it was considered as one of the greatest American market failure<br />
  13. 13. Rival emerged victorious<br />Rather than beating the rival the strategy paved a way for the rival to get more customers.<br />
  14. 14. Relaunch of the classic coke<br />The company soon realized the mistake they made and the old flavored was launched again as coke classic<br />‘We did not understand the deep emotions<br /> of so many of our customers for coco-cola’<br /><ul><li> Donald R. Keough</li></ul> Coco-cola president<br />
  15. 15. REASON FOR RETURN OF CLASSIC COKE<br />PUBLIC BIDDING EMOTION TO ORIGINAL COKE<br />US HERITAGE DISPLAY ON THE CLASSIC COKE SUCCESS<br />PEPSI GAINED GROUND ON COLA<br />
  16. 16. US HERITAGE DISPLAY ON THE CLASSIC COKE SUCCESS<br />Coke had spent more than a hundred years convincing the North American population that its product was an integral part of their lives, and their very identities. to do away with Coca-Cola was violating their identity and they weren&apos;t going to stand for it, and they therefore weren&apos;t shy about saying so. <br />
  17. 17. PEPSI GAINED GROUND ON COLA<br />By the end of 1985 Pepsi had more market shares than the combined market share of new coke and coke classic<br />By end of 1987 from market cokes share of 3 percent it come down 0.1<br />
  18. 18. Conclusion <br />Coca Cola is one of the most recognized brands on the globe and the main factor behind their success is their Marketing Strategy. <br />Mistakes:-can cause the shutdown of the company. <br />Before making any changes to the company or introducing a new product, it is very important to find all relevant information related to it, and to accurately anticipate results. <br />It is also Important to define the goal and reason for Market Research before conducting it and every detail must be considered while conducting it. <br />
  19. 19. Conclusion <br />Market Research can only guide in making decisions, but ultimately it is the decision of the top level in the organization. <br />Not a Marketing Ploy, thus considered as marketing Blunder.<br />Coca-Cola decided that the survey results were more reliable than the feedback they got from the focus groups.<br />
  20. 20. Conclusion <br />Not well planned. Coke lost a lot of sales to Pepsi, sales that Pepsi would have never gained if new coke was not unleashed.<br />Discontinuing the production of the existing brand(old coke) knowing the product is new in the market.<br />
  21. 21. Q & A<br />
  22. 22. THANK YOU<br />

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