Nipun & annant with macDonald and mitul & sandeep with pepsi
business research management presentation
IBS GURGAON PRESENTATION ON The Launch of New COKEPRESENTED TO PRESENTED BYProf. Vipin Khurana Nipun Nikunj
INTRODUCTION•Founded - 1892• Headquarter- Midtown Atlanta, Georgia• Founder -John Pemberton• Present Chairman - Muhtar Kent•Its name is known for the ingredients used “coca leavesand kola seeds”• Coca cola- “ To Make Mouth Happy” in Chinese•First Advertisement appeared in Atlanta Journal
BACKGROUND NOTE1895 Drink as a cure for mental and physical exhaustion1919 Sold to an investment group owned by Ernest Woodruff for $25million1930 Pepsi Cola emerged as Coca Cola major competitor Pepsi ad budget exceeded Coca Cola’s1970 ad budget1978 Coca cola was beaten by Pepsi
THE RATIONALE Coca cola’s new CEO Goizueta could not stop the decline in Coca Cola market share Share fell down from 24.3% to 21.8% in 1984 Ad was not much effective
COCA-COLA’S STRATEGY More vending machines Occupied more shelf space Competitively priced Wider distribution
MARKET RESEARCH Sample Size – 2,00,000 Duration – 2 yrs Expenditure - $4 million RESEARCH METHODOLOGY Individual Blind taste test Focus Group Test Interview
THE LAUNCH AND ITS AFTERMATH Lunched New Coke with punch line “Catch the wave” Consumer Reactions : Taste similar to Pepsi Perceived as me-too product Worse than the original coke Received complaints calls and letters.
NEW COKE :WHAT WENT WRONG? Failed to understand the emotional attachment of the customers to coke Against customer’s taste , preferences and opinions Findings of market research were erroneous and late Company was unprepared for unseen conditions
WRONG INTERPRETATION OF THE RESEARCH Misinterpret customer’s response Individual Interviews were followed by focus group research Focused more on winning taste than other marketing soft drinks
QUESTIONS AND ANSWERS….??????1. Market researchers had expected coca cola to conduct focused group testing of a new product first and then use individual interviews to verify the results of the focus groups.What other types of research methods would have been helpful to the company in providing consumer insights? Discuss.
CONTINUE….2. The launch of new coke turned out to be a nightmare for coca cola. Discuss the marketing implications of introducing new coke. Was it necessary to re-formulate new coke?
CONTINUE….3. Though some analysts felt that the launch of New Coke was a blunder, others thought it was a deliberate marketing poly. Is the failure of New Coke really a marketing blunder? Give your opinion and substantiate it.
CONCLUSIONAt the end of the 2001 coke covered 44% market share as compared to 32% ofPepsi’s Market Shares 25.00% 20.00% 15.00% Market Shares 10.00% 5.00% 0.00% Coke Pepsi Diet Mountain Sprite Dr. Diet 7-UP Caffien Barqs Classic Cola Coke Dew Pepper Pepsi Fair Diet Root Coke beer
LEARNING Analyze the research process analyze the type of research Test the product before implementation Interpret the research correctly
SIMILAR RESEARCH PAPERS Success after changing marketing strategyTitle- Success story of McDonald in India Failure after changing the marketing strategyTitle- Failure of the changing marketing strategy of Pepsi.