2. CONTENTS
• History of Coca Cola
• Reasons for New Coke introduction
• The launch of New Coke
• Relaunch of the Classic Coke.
• Conclusion & Learning
3. HISTORY
• The name coca cola was suggested by
john pemberton’s book keeper frank
Robison.
• In 1887 assa griggs candler bought the
company shares and incorporated it in
1888.
• 1893 coca cola was registered in the
u.s patent office.
• 1895 coca cola is now drunk in every
state in the us
4. Background
• Trade name of sweetened
carbonated drink
• Originally made with cocoa leaves
and flavored with cola nuts along
with caramel and caffeine
• Started in 1886 grabbing the market
of USA in 1895 and expanding up to
200 countries in 2000
5. Reasons for new coke introduction
• PEPSI’s Challenge
•Loosing market share
• Brand image affected
6. PEPSI’S CHALLENGE
• Blind fold Challenge
• A big Success
• Signed up big celebrities
• Taken around the Globe
7. Loosing market share
• The company had lost its market share , though
remaining competitive
• By 1970 the overall market share had dropped
to 4.9%
• By 1984 the overall market share of the
company dropped to 9.8%
8. Brand image affected
• The company was not only loosing share to
the rival Pepsi but also to other brand
created by itself.
Example:-Diet Coke went on to become the
most successful consumer product launch
of the 1980s
9. COKE’S ADVERTISING CAMPAIGN
• Coke launched an advertising campaign
• Praising for Coke being less sweet than PEPSI
• Ads fronted by Bill Cosby
10. The launch of new coke
• Coca-Cola launched New
Coke in April 1985 with
the punch line 'Catch the
wave'
• change in Coke's formula
was publicized through
the television and
newspapers
11. Effect of new coke
• Loss of existing customers
• More decline in the market
share
• Rival emerged victorious
• Re launch of the classic
coke
12. Loss of existing customers
• The existing customers did not like the new
coke in term of its taste and switched to
other brands.
• Many of the existing customers boycotted
the New coke , as the production of Classic
Coke was Scrapped down.
13. More decline in the market share
• An unexpected twist happened in the
existing market of coke
• within 79 days the market share dropped to
such an extent that it was considered as one
of the greatest American market failure
14. Rival emerged victorious
Rather than beating
the rival the strategy
paved a way for the
rival to get more
customers.
15. Relaunch of the classic coke
• The company soon realized the mistake they
made and the old flavored was launched
again as coke classic
‘We did not understand the deep emotions
of so many of our customers for coco-cola’
― Donald R. Keough
Coco-cola president
16. REASON FOR RETURN OF CLASSIC COKE
• PUBLIC EMOTION TOWARDS
CLASSIC COKE
• US HERITAGE DISPLAY ON
THE CLASSIC COKE SUCCESS
• PEPSI GAINED GROUND ON
COLA
17. PUBLIC EMOTION TOWARDS CLASSIC COKE
• Public outrage was high as Classic Coke was
no longer available in the market .
• The US population was emotionally attached
towards the Classic Coke.
18. US HERITAGE DISPLAY ON THE CLASSIC COKE
SUCCESS
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't
going to stand for it, and
they therefore weren't shy
about saying so.
19. PEPSI GAINED GROUND ON COLA
• By the end of 1985 Pepsi
had more market shares
than the combined market
share of new coke and
coke classic
• By end of 1987 from
market cokes share of 3
percent it come down 0.1
20. Conclusion
• THE BIGGEST MARKETING
BLUNDER OF ALL TIME
• Market Research failed in case
of New Coke .
• Coke lost a lot of sales to PEPSI
• Lost market share and also the
no.1 status .
.
21. • All the money , time and skill
poured on new coke could not
match the deep and abiding
attachment towards the
Classic Coke .
22. learnings
• CocaCola has learnt that Marketing is
much more than “PRODUCT ITSELF”.
• Before making any changes to the
company or introducing a new
product, it is very important to find all
relevant information related to it.
• You cannot change the taste of your
Flagship brand .
23.
24.
25. GROUP MEMBERS
• PALLAVI HEGDE
• JAHNAVI RAJANALA
• SHUBHAM MITTAL
• ZUBIN GALA
• UMANG GOEL
• KRISHNAKANT LOYA
