4. Having produced its new
formula, the Atlanta-
based company
conducted 200,000 taste
tests to see how it fared.
5. Research Design
All tests were conducted double blind basis
Double Triangle Discrimination
Two samples of Coke and one of Pepsi or
Two samples of Pepsi & one of Coke
Taste preference tests were conducted on a
paired comparison basis
Regular Coke –Regular Pepsi
New Coke-Regular Pepsi
New Coke-Regular Coke
6. The results were overwhelming. Not only did it taste
better than the original, but people preferred it to
Pepsi-Cola as well.
However, if Coca-Cola was to stay ahead of Pepsi-
Cola it couldn’t have two directly competing products
on the shelves at the same time. It therefore decided
to scrap the original Coca-Cola and introduced New
Coke in its place.
New coke was introduced on 23 April 1985, and the
production of the original formulation ended the same
week. At an 11 July 1985 press conference Coca
Cola executives announced the return of the original
formula.
7. “We have heard you”
-Roberto Goizueta, Chairman
The simple fact is that all the time and money and
skill poured into consumer research on the new
Coca-Cola could not measure or reveal the deep and
abiding emotional attachment to original Coca-Cola
felt by so many people. The passion for original
Coca-Cola – and that is the word for it, passion – was
something that caught us by surprise.
-Chief Operating Officer Donald Keough
8. Having two sugar cola products on the market did
indeed split the market share as Coca Cola has
feared
Market Survey End 1985: Pepsi ahead of New
Coke & Classic Coke combined
Early 1986: Classic coke began outselling new
coke and reclaimed the sugar cola crown from
Pepsi.
New Coke sort of faded away.
9. Conclusion of case
Do the right research.
Despite the thousands of taste tests
Coca-Cola carried out on its new
formula, it failed to conduct adequate
research into the public perception of the
original brand.
10. What Research Is Not
Research isn’t information gathering:
Gathering information from resources such books
or magazines isn’t research.
No contribution to new knowledge.
Research isn’t the transportation of facts:
Merely transporting facts from one resource to
another doesn’t constitute research.
No contribution to new knowledge although this
might make existing knowledge more accessible.
11. What Research Is
Research is:
Research is discovery of new fact, law,
principle, theory or a generalization using
inductive-deductive methods, reflective thinking,
problem solving approach or scientific
approach.
12. What Research Is
Research is:
Research is reinterpretation of already known
fact, law, principle, theory or a generalization
using inductive-deductive methods, reflective
thinking, problem solving approach or scientific
approach.
13. The systematic & objective
identification, collection, analysis,
dissemination and use of information for
the purpose of assisting management
decision making.
14. Research Characteristics
1. Originates with a question or problem.
2. Requires clear articulation of a goal.
3. Follows a specific plan or procedure.
4. Often divides main problem into subproblems.
5. Guided by specific problem, question, or
hypothesis.
6. Accepts certain critical assumptions.
7. Requires collection and interpretation of data.
8. Cyclical in nature.
15. Objectives of Research
“Find out the truth which is hidden & which has not been
discovered yet”
To achieve new insight
To portray accurately the characteristic of particular
individual, situation or a group
To test a hypothesis of a causal relationship between
variables.
16. Types of Research
Basic Research
Intended to expand
the body of
knowledge
Provide knowledge
for the use of others
Applied Research
Carried out for
solving particular
problem or for
guiding a specific
problem
Results are private
17. When to do research
There is an information gap
Cost of filling gap through research is
less cost of taking wrong decision
Time taken for research does not delay
decision making beyond reasonable
limits