Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

New Coke Fiasco

327 views

Published on

This presentation tries to capture the basic mistakes committed by coke and repercussions of the launch of new coke in terms of Brand equity

Published in: Marketing
  • Be the first to comment

  • Be the first to like this

New Coke Fiasco

  1. 1. New Coke Fiasco
  2. 2. April 23, 1985 Coca Cola announced reformulation of Coke July 11, 1985 Reinstating old coke as Coca Cola Classic
  3. 3. Pepsi’s blind taste tests suggested that America preferred Pepsi over Coke Coke was loosing market share Coke was considered an old brand, whereas Pepsi was young and energetic Business Environment
  4. 4. So how did coke handled this difficult situation?
  5. 5. Gain the lost Market Share Beat Pepsi Revamp Brand Strategy Sweeter Taste Cool Packaging Advertisement Campaign Plan Coke’s Reaction
  6. 6. And what about Customer Reaction??
  7. 7. Customer’s Reaction A man wrote to Mr. Goizueta asking for his autograph — because, in years to come, the signature of "one of the dumbest executives in American business history" would be worth a fortune. When the taste change was announced, some consumers panicked, filling their basements with cases of Coke®. A man in San Antonio, Texas, drove to a local bottler and bought $1,000 worth of Coca-Cola. Protesters at a Coca-Cola event in downtown Atlanta in May carried signs with "We want the real thing" and "Our children will never know refreshment."
  8. 8. Back to Classic Introduced within 77 days Classic Coke outsold New Coke Coke gained market share from Pepsi Coca Cola Classic to Coca-Cola in 2009 New Coke line terminated in 1992 Old Formula for loyalists
  9. 9. And what about Customer Reaction?? So what went wrong?
  10. 10. Backlash Customers Resistance to Change Strong American Value Brand associated to culture Coca-Cola Biased Market Research Low confidence in Brand Attribute based war
  11. 11. Coke’s Strength - Association with History
  12. 12. Coke’s Strength - Association with Culture
  13. 13. Involvement, Community, Attachment Innovation, Loyalty, Leader, Superiority Happiness, Sharing, Celebration, Family, Self respect Happiness, Moments, Christmas, Social, Fun Refreshment, Unique Flavour, Reference of Colas, Energy, Tasty Everywhere, American Values, Fresh Drink, Happiness, Thirst Quencher, Lovermark Misalignment of Strength War Zone
  14. 14. Involvement, Community, Attachment Innovation, Loyalty, Leader, Superiority Happiness, Sharing, Celebration, Family, Self respect Happiness, Moments, Christmas, Social, Fun Refreshment, Unique Flavour, Reference of Colas, Energy, Tasty Everywhere, American Values, Fresh Drink, Happiness, Thirst Quencher, Lovermark Coca-Cola to New Coke 100 years of relationship with American Values Deteriorationof BrandEquity New packaging and taste means lost attachment, So basically a new brand
  15. 15. Learnings Product Perception is more important than Product Emotional attachment to brand can be irrational Imitation doesn’t provide competitive advantage Listen to your customers Prevent biases in Market Research Align competition and competencies well
  16. 16. Created by Hiteshwar Gaur, IIM Lucknow under Prof. Sameer Mathur, IIM Lucknow

×