Coca-Cola introduced New Coke in 1985 to replace the original formula in response to losing market share to Pepsi. New Coke performed better than the original in taste tests but was met with public backlash. Just 77 days later, Coca-Cola reintroduced the original formula as Coca-Cola Classic due to intense consumer demand. Coca-Cola executives had focused only on beating Pepsi in taste tests and failed to adequately consider consumer loyalty to the original formula. The New Coke launch was a major marketing failure that highlighted the importance of thorough market research and the power of consumer preferences.
Marketing failures tells us how even the most brilliant marketers commit mistakes which can turn into major failures for brands. The first deck on marketing failures describes what is sometimes known as the "Biggest Marketing Blunder of All Times". Hard to believe that it comes from one of the best marketers of current time, Coca-Cola. How the introduction of New Coke after abandoning its century-old beverage backfired and what led to that decision are some of the points dicussed.
Marketing failures tells us how even the most brilliant marketers commit mistakes which can turn into major failures for brands. The first deck on marketing failures describes what is sometimes known as the "Biggest Marketing Blunder of All Times". Hard to believe that it comes from one of the best marketers of current time, Coca-Cola. How the introduction of New Coke after abandoning its century-old beverage backfired and what led to that decision are some of the points dicussed.
In 1985, the Coca-Cola Co. announced a decision that would rock the world. The old Coke formula would be taken off the market and replaced with a smoother, sweeter taste however the reaction of the American people was immediate and violent.
Coca Cola Financial Analysis Final Project for Financial Accounting, St. Thomas MBA program. Group projected included Leanna Privette, Robin Toal, and April Vassau.
Cola Wars have continues till date. This presentation presents an analysis of the case Cola wars continues in 2006.
Find out what we have to say about the classic case of competition.
Presentation on Cola Wars between Coke and Pepsi
(Presented in Marketing Planning and Implementation-1 Course at MDI Gurgaon)
P.S- Please feel free to share your views in comments.
In 1985, the Coca-Cola Co. announced a decision that would rock the world. The old Coke formula would be taken off the market and replaced with a smoother, sweeter taste however the reaction of the American people was immediate and violent.
Coca Cola Financial Analysis Final Project for Financial Accounting, St. Thomas MBA program. Group projected included Leanna Privette, Robin Toal, and April Vassau.
Cola Wars have continues till date. This presentation presents an analysis of the case Cola wars continues in 2006.
Find out what we have to say about the classic case of competition.
Presentation on Cola Wars between Coke and Pepsi
(Presented in Marketing Planning and Implementation-1 Course at MDI Gurgaon)
P.S- Please feel free to share your views in comments.
Case study: Share a Coke Campaign Post-analysis
Campaign: Share a Coke
Client: Coca-Cola
Agencies: Naked, Ogilvy, Wunderman, Ikon, Fuel, Urban, Momentum, One Green Bean
Dreaming of Brand Success? Want to see some case studies on great brand practice? Sometimes you learn a lot more from failures than you do successes...so we've brought together some great brand failures that we celebrate as offering us valuable lessons for great brand success. Enjoy!
History of the World Most Famous brand #1: Coca-Cola
This document has been created by:
- Mr Raiarii Lehartel, IAE Tlse L3 CC, 2009-2010
- Mr Yoan Lasbouygues, IAE Tlse L3 CC, 2009-2010
We sincerely hope that it will help some students :D
Summary on the coca cola's biggest mistake-April 23 1985, that’s where the story began. On that day, The Coca-Cola Company took the biggest risk in consumer goods history, announcing that it was changingnearly century-old secret formula for the world's most popular soft drink.
Coca-Cola - History, Evolution, Present and the FutureGreg Thain
A comprehensive background of Coca-Cola containing its History and Origins, Early Evolution, Modern Business, Global Expansion, Company Structure, Recent Efforts and Company DNA. As one of the chapters of the book FMCG: The Power of Fast-Moving Consumer Goods by authors Greg Thain and John Bradley. For more details on their success story and that of other leading FMCG companies, check www.fmcgbook.com or Amazon http://amzn.to/1jRyd20.
A presentation on Coca-Cola's new and innovative way to promote their product through interesting and emotionally or socially touching advertisement. This case is taken from Marketing Management Book by Kotler (Marketing Excellence)
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
𝐓𝐉 𝐂𝐨𝐦𝐬 provides unlimited package services including such as Event organizing, Event planning, Event production, Manpower, PR marketing, Design 2D/3D, VIP protocols, Interpreter agency, etc.
Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
➢ SUPER JUNIOR-L.S.S. THE SHOW : Th3ee Guys in HO CHI MINH
➢FreenBecky 1st Fan Meeting in Vietnam
➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
➢ WOW K-Music Festival 2023
➢ Winner [CROSS] Tour in HCM
➢ Super Show 9 in HCM with Super Junior
➢ HCMC - Gyeongsangbuk-do Culture and Tourism Festival
➢ Korean Vietnam Partnership - Fair with LG
➢ Korean President visits Samsung Electronics R&D Center
➢ Vietnam Food Expo with Lotte Wellfood
"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
1. Running head: NEW COKE
1
New Coke
James Balle
ORG525 – Leadership and Decision Theory
Colorado State University – Global Campus
James Ondracek
August 26, 2013
2. NEW COKE
2
New Coke
• April 23, 1985
– Coca-Cola announced the reformulation of Coke
• July 11, 1985
– Coca-Cola announced it would bring back the
original formulation of Coke as Coca-Cola Classic
and continue with both New Coke and Coca-Cola
Classic
(Coca-Cola Company, 2012)
3. NEW COKE
3
Circumstances
• Pepsi’s Pepsi Challenge Advertising
– Pepsi conducted blind taste tests and determined
that more people like the taste of Pepsi than Coke
• Coke was losing market share
– Coke’s overall sales lead was diminishing
– Coke sales in supermarkets fell below Pepsi
(Shindler, 1992)
5. NEW COKE
5
Project Kansas
• Research New Coke formulation
– Focus Groups
•
•
•
•
$4 Million spent over 2 years
200,000 participants
Only small percentage tasted final new formulation
Only small percentage told about reformulating Coke
– Tests confirmed Pepsi’s taste test results
• Pepsi better tasting than original Coke
• New Coke better tasting than Pepsi
(Gelb & Gelb, 1986)
6. NEW COKE
6
Coke’s Decision
• New formulation
• New packaging
• New advertising campaign
(Coca-Cola Company, 2012)
7. NEW COKE
7
The Announcement
• Coke executives confident
• Beverage analysts believed change would
cause little impact
• Pepsi criticized Coke for using new
sweetener with higher caloric content
(Shiver, 1985)
8. NEW COKE
8
Public Backlash
• Negative press coverage (Koten & Kilman,
1985)
• Coke deliverymen blamed and ridiculed
(Koten & Kilman, 1985)
• Hoarding of and black market for original
Coke (Demott, Kane, & Pelton, 1985)
9. NEW COKE
9
Coke’s Framing Bias
• Change Coke to beat Pepsi
– Coke executives were singularly focused on
Pepsi’s taste test results
– Creating a better tasting Coke was the only thing
that mattered
– No concerns for anything else
10. NEW COKE
10
Groupthink
• Some taste test participants, told of the
possibility of replacing Coke, expressed
dislike for the idea—executives ignored
their concerns (Gelb & Gelb, 1986)
• Junior executives at Coke seemed to not
want to go against senior executives
(Cassels, 2010)
11. NEW COKE
11
Bring Back the Old Coke
• Coke executives began working on bringing
the old Coke back 11 days after New Coke
was introduced
• The new name for the old Coke was decided
just 2 days before the announcement was
made
(Zmuda, 2011)
12. NEW COKE
12
Coca-Cola Classic
• Introduced 77 days after New Coke
debuted
• Coke executives brought back old
formulation to placate loyalists
• New Coke would still be flagship
• Coca-Classic would have small market
share
(Koten & Kilman, 1985)
13. NEW COKE
13
Public Rejoicing
• News Coverage
– Peter Jennings interrupted General Hospital to
make announcement (Zmuda, 2011)
– News of Coke’s decision was covered by all three
television networks (Zmuda, 2011)
• Announced on the floor of the United
States Senate (Spitznagel, 2013)
14. NEW COKE
14
Old Overtakes New
• Coca-Cola Classic began outselling New
Coke by a wide margin
• Many bottlers gave Coca-Classic
prominent shelf positioning over New
Coke
(Altaner, 1986)
15. NEW COKE
15
Coke’s Confirmation Bias
• Coke executives still believed in New
Coke (Koten & Kilman, 1985)
• Coca-Cola Classic took its place as
flagship (Koten & Kilman, 1985)
• Coca-Cola Classic began outselling New
Coke and Coke’s lineup began outselling
Pepsi’s lineup (Altaner, 1986)
16. NEW COKE
16
New Coke Failed
• New Coke changed to Coke II in 1990
(Shindler, 1992)
• New Coke discontinued in United States
(Shindler, 1992)
• Coca-Cola Classic became Coca-Cola in
2009 (Zmuda, 2011)
17. NEW COKE
17
Alternative Option 1
• Release New Coke with a different name
while keeping original Coke
• Market new product to compete directly
with Pepsi
19. NEW COKE
19
Lessons Learned
• People are resistant to change (personal
communication, August 24, 2013)
• Conduct more thorough market research
• Impact of media and social influences
(Shindler, 1992)
20. References
Altaner, D. (1986). Old, new or classic, Coke still number one now that marketing confusion has calmed, the old recipe outsells the new
three to one. Sun Sentinel, March 30, 1986.
Coca-Cola Company. (2012). The real story of New Coke. Retrieved from http://www.coca-colacompany.com/stories/coke-lore-new-coke
Cassels, P. (2010). When image became everything: The New Coke fiasco at 25. Retrieved from
http://www.thefastertimes.com/business/2010/04/23/the-new-coke-fiasco-at-25/
Colorado State University-Global Campus. (2013). Module 4 – Managing group dynamics in a decision environment. [Blackboard
ecourse]. In ORG 525 – Leadership and decision theory, (p3). Greenwood Village, CO: Author.
Colorado State University-Global Campus. (2013). Module 5 – Managing biases, and emotional influences in decision making.
[Blackboard ecourse]. In ORG 525 – Leadership and decision theory, (p2). Greenwood Village, CO: Author.
DeMott, J. S., Kane, J. J., & Pelton, C. (1985). All afizz over the New Coke: Some hate the taste, but sales have never been better. Time,
125(25), 60-60.
Gelb, B. D., & Gelb, G. M. (1986). SMR Forum: New Coke’s fizzle lessons for the rest of us: New Coke fizzles understanding consumer
resistance how better research can help what does the product do for the buyer? Applying the research references. Sloan
Management Review, 28(1), 71-77.
21. Koten, J., & Kilman, S. (1985). Coca-Cola faces tough marketing task in attempting to sell old and New Coke. Wall Street Journal,
Eastern Edition, July 12, 1985.
Koten, J., & Kilman, S. (1985). Marketing classic: How Coke’s decision to offer 2 colas undid 4 1/2 years of planning --- after a successful
Introduction of New Coke, firm began to see market slip away --- which one will be flagship? Wall Street Journal, Eastern Edition,
July 15, 1985.
Ross, M. E. (2005). It seemed like a good idea at the time: New Coke, 20 years later, and other marketing fiascoes. Retrieved from
http://www.nbcnews.com/id/7209828/ns/us_news/t/it-seemed-good-idea-time/
Schindler, R. M., (1992). The real lesson of New Coke: The value of focus groups for predicting the effects of social influence. Marketing
Research, (4)4, 22-27.
Shiver, Jr, J. (1985). Coca-Cola will soon taste sweeter, report says. Los Angeles Times, April 23, 1985.
Spitnagel, E. (2013). From Coke to Netflix: Consumers drive brands into retreat. Retrieved from
http://mobile.businessweek.com/articles/2013-02-20/from-coke-to-netflix-consumers-drive-brands-into-retreat
Zmuda, N. (2011). Inside the framework—and fallout—behind New Coke. Advertising Age, 82(18), 14-14.
Editor's Notes
New CokeOn April 23, 1985, Executives from the Coca-Cola Company announced the reformulation of their flagship soft drink, Coke. The new formulation, most often referred to as New Coke, was a sweeter version of Coca-Cola. Coke also announced that the original formulation of their flagship drink would no longer be available.On July 11, 1985, Coke Executives announced it would bring back the original formulation as Coca-Cola Classic. Coke also announced that New Coke would continue as the flagship product—while Coca-Cola Classic would be an alternative for those who wanted the option (Coca-Cola Company, 2012). Coke’s decision to bring back the original formula came just 77 days after its announcement that the original formula had been retired.This presentation will detail the circumstances that lead to Coke’s decision to scrap its best-selling product. This presentation will also explore the problems with Coke’s decision-making process—and what could have been done differently. It also details the outcomes of and the lessons learned from the New Coke incident.
CircumstancesMany circumstances lead Coca-Cola executives to make the decision to reformulate their flagship soft drink. In the mid-1970s, Pepsi, Coke’s biggest competitor, began conducting blind taste tests with Pepsi and its rival, Coke soft drinks. The results of Pepsi’s taste tests showed that a majority of participants liked the taste of Pepsi better than the taste of Coca-Cola. Pepsi launched an advertising campaign touting the taste test results. The advertising campaign was known as the Pepsi Challenge. Advertisements asked consumers to take the Pepsi Challenge. For doing so, consumers would receive a free t-shirt. Coca-Cola’s market share had been in steady decline over the previous several years. Pepsi had overtaken Coke in food store sales by 1977 (Shindler, 1992).
Coke’s StrategyCoke’s executives were highly troubled by Pepsi’s gain in market shares. Coke’s own internal market research confirmed Pepsi’s taste test results that a majority of people tested liked the taste of Pepsi over the taste of Coke. Pepsi was marketing to the baby-boomer generation and using celebrities such as Michael Jackson—Coke though Michael Jackson was not patriotic enough for its advertising (Cassels, 2010).Coke executives wanted to modernize its image. Coke desperately wanted to reverse its loss of market share. Doing so, meant it had to beat Pepsi. Coke executives needed a way to save the company. Coke executives met in a top-secret meeting at their advertising agency in New York City. At this meeting, Coke’s Vice President made the shocking announcement that the company would replace Coke with a new Coke (Cassels, 2010).
Project KansasCoke’s market research into the possibility of reformulating Coke was known as Project Kansas. Coke spent four million dollars over two years on the project. The research consisted of using focus groups and blind taste tests. Some 200,000 people participated in the blind taste tests. Coke researchers tested the current formulation of Coke—along with Pepsi and several different new formulations for Coke. Coke’s research confirmed Pepsi’s results that a majority of cola drinkers liked the taste of Pepsi better than Coke (Gelb & Gelb, 1986).Only a small percentage of Coke’s taste test participants were given the formulation for the new Coke that would eventually become the official New Coke. Only a small percentage of taste test participants were told of Coke’s plan to reformulate Coke. A small but vocal minority of participants who were told of Coke’s plan to reformulate the drink voiced disagreement with Coke’s plan (Gelb & Gelb, 1986).
Coke’s DecisionThe results of Coke’s marketing research showed cola drinkers preferred the taste of one of the new formulations for Coke to that of the current version of Coke—or even Pepsi. These results and the successful launch of Diet Coke three years earlier gave Coke executives confidence that reformulating the cola was the best way to go. The new formulation would be sweetened with a high-fructose corn sweetener—that made it noticeably sweeter than the original Coke and sweeter than Pepsi (Coca-Cola Company, 2012).Coke would also change the packaging for the new formulation. Coke would remove the script Coca-Cola and replace it with a block-style Coke. The packaging would replace the white in the packaging with silver—as to make the new Coke distinctively different from the old Coke. To reach out to a younger audience, Coke hired the actor, Bill Cosby to star in its new advertisements (Coca-Cola Company, 2012).
The AnnouncementCoke officials announced the reformulation of Coke on April 23, 1985. During the press conference, Coke officials announced that the decision to make the change was one of the best decisions ever made by Coke. A beverage analyst for Smith Barney stated that the change in Coke’s formulation would not make a big difference. The trade magazine, Beverage Digest, did not think the change would affect local Coca-Cola bottlers. Pepsi officials criticized Coke for using a new sweetener that had a higher caloric content—after knocking Pepsi for being too sweet (Shiver, 1985). It was estimated that 81 percent of the American population knew about the reformulation of Coke within 24 hours (Demott, Kane, & Pelton, 1985).
Public BacklashNegative press coverage began almost immediately after the Coke’s announcement that it was reformulating Coke and the original formula would no longer be available. Coke loyalists were very unhappy with Coke’s decision. Coca-Cola deliverymen, and anyone who worked for Coke or one of its bottlers, were blamed and ridiculed. Some Coke employees were afraid to tell anyone where they worked—for fear of the public backlash. Some Coke deliverymen were even harassed by grocery shoppers—being held responsible for Coke’s decision to change Coke (Koten & Kilman, 1985). The announcement that the original formulation of Coke would no longer be available led to hoarding and the creation of a black market. Some people were reported to have purchased hundreds of cases to store in their basements. There were many reports of people selling cases of the original formulation of Coke on the black market—some getting thirty dollars per case for the drink (Demott, Kane, & Pelton, 1985).
Coke’s Framing BiasCoke’s executives suffered from a framing bias when making the decision to reformulate Coke and remove the original formula from circulation. A framing bias happens when decision-makers fail to see the big picture when making a decision (CSU, 2013). Coke’s executives were singularly focused on Pepsi’s blind taste tests results that showed Pepsi tasted better than Coke. Coke executives did not focus on Coca-Cola as a brand or what that brand might mean to Americans.Coke spent great resources on its own market research to confirm Pepsi tasted better than Coke—but that Coke could make a drink that tasted better than Pepsi. Coke executives did not research what could be done to reposition Coke in the market—or to make Coke more appealing to consumers. Coke executives had no concerns for anything but making a version of Coke that would beat Pepsi.
GroupthinkCoke executives seem to have been suffering from groupthink. Groupthink occurs when members of a group do not want to go against the majority—preferring group harmony instead (CSU, 2013). Junior executives at Coke were not involved with the initial decision to make the formulation change. Sixteen Coke executives attended a secret meeting at the offices of the Coca-Cola Company’s advertising agency in New York City. Only two senior executives knew the reason for the meeting. They announced that Coke would change the formulation of Coke. It seems that the fourteen other executives present at the meeting did not voice any concerns (Cassels, 2010).During the market research of Project Kansas, a small percentage of participants who were told of Coke’s possible plan to change Coke’s formulation, voiced their opposition. Coke executives ignored these concerns (Gelb & Gelb, 1986).
Bring Back the Old CokePublic backlash resulting from Coke’s decision to reformulate Coke became more intense. Coke received hundreds of calls per day and tens of thousands of letters complaining about New Coke and pleading for the old formula to be brought back. Southern bottlers were most affected by the retirement of the original Coke. A group of southern Coca-Cola bottlers submitted a petition to Coke executives—asking that the original formulation be resurrected (Zmuda, 2011).Coke executives decided they needed to bring the old formula back to placate Coke loyalists and consumers who wanted that option. Coke officials began working on the re-introduction of the original formula just eleven days after the launch of New Coke. Coke officials wrestled with what to call the old formulation when it was once again made available to the public. The name Coca-Cola Classic was chosen just two days before the announcement of its return—so soon that a phony paper label had to be applied to the can for the first advertisements (Zmuda, 2011).
Coca-Cola ClassicThe Coca-Cola Company introduced Coca-Cola Classic to the public on July 11, 1985. The return of the old formulation of Coke came just 77 days after the introduction of New Coke. Coke’s intention was for Coca-Cola Classic to be a flanker brand to its flagship New Coke. Coca-Cola Classic was introduced to placate the vocal minority of Coke loyalists who were unhappy with the cola’s change (Koten & Kilman, 1985).Coke’s plan was for New Coke to remain its flagship product. Coke predicted Coca-Cola Classic would have a small market share and would be frugal with its advertising campaign so as to not overshadow New Coke. Coca-Cola Company stock surged with the announcement of the introduction of the Coca-Cola Classic (Koten & Kilman, 1985)
Public RejoicingThe news that Coke was bringing back the old formula was very well received by the American public. ABC News Anchor, Peter Jennings, interrupted General Hospital with a special report to announce the return of the original Coke formulation. The return of the original Coke was covered by all three television networks on the day of the announcement. Arkansas Senator, David Pryor called Coke’s decision to bring back the original formula, “a meaningful moment in U.S. history” (Spitznagel, 2013, para 5).
Old Overtakes NewWhen Coca-Classic was introduced in July of 1985, many bottlers—especially southern bottlers gave the new drink prominent shelf space that was supposed to be reserved for New Coke. By March of 1986, Coca-Cola Classic was outselling New Coke by a three to one margin nationwide. Coca-Cola Classic’s lead in New York, Dallas, and Minneapolis was eight to one over New Coke. Coca-Cola Company stock was up over fifty percent from the day Coke announced the introduction of Coca-Cola Classic (Altaner, 1986)
Coke’s Confirmation BiasCoke brought back the original formulation for Coca-Cola in the form of Coca-Cola Classic. The newly named old formulation was intended to be flanker brand to the Coke’s flagship product, New Coke. Coke had bowed to public pressure to bring back the old drink but Coke suffered from a confirmation bias. A confirmation bias involves seeking out evidence that confirms the initial decision (CSU, 2013). Coke executives still believed New Coke would be the company’s savior. Coke executives seemed to only seek out evidence that confirmed their decision to reformulate Coca-Cola (Koten & Kilman, 1985).However, Coca-Cola Classic took its place as the unauthorized flagship as it began outselling the official flagship New Coke by a wide margin. Coke’s lineup of products, including its diet drinks and Cherry Coke, began outselling Pepsi’s lineup of drinks (Altaner, 1986).
New Coke FailedCoke continued with its two colas until it became very evident that New Coke was never going to be its best-selling product. New Coke’s name was changed to Coke II in 1990. Coke II held an insignificant market share and was later discontinued in the United States. Coke continued with Coca-Cola Classic as its flagship product (Shindler, 1992). Bringing the New Coke debacle to final closure, the Coca-Cola Company quietly removed the word “Classic” from its packaging in 2009 (Zmuda, 2011).
Alternative Option 1It is obvious that Coke executives made some bad decisions back in 1985. The Pepsi Challenge blind taste tests and subsequent advertising campaign caught Coke officials by surprise. In their shock, they succumbed to groupthink and several biases when making decisions about what to do. One alternative would have been take the results from Project Kansas and release the new cola to the public with a different name—while keeping the original Coke unchanged. Coke could have marketed the new cola to compete directly with Pepsi. Coke would have had two colas—just as they had with New Coke and Coca-Cola Classic. But this time, they would have had the untapped Pepsi market with their new cola as well as the traditional Coke market.
Alternative Option 2Another option for Coke would have been to re-energize the Coca-Cola brand. Coke spent four million dollars on reformulating Coca-Cola. Coke could have used that budget to undertake research on how to reposition Coca-Cola in the market. Coke could have embarked on a new advertising campaign to market Coca-Cola to a wider audience—including Pepsi drinkers.
Lessons LearnedClinical Behavioral Specialist, R. Balle-Mason, MS, creates behavioral change programs for the Colorado Department of Human Services. She explained how people are generally resistant to change. She describes that when people are not involved in the change process and have change forced upon them, they tend to rebel and not cooperate. If people are asked to participate in the change process, they tend to cooperate and the change succeeds more often than not (personal communication, August 24, 2013). Coke did not involve its customers in its decision to change the formulation of Coke. Coke never asked anyone if they wanted a new Coke formulation (Ross, 2005). Coke executives overlooked the symbolic meaning of Coke and relied solely on taste test results (Gelb & Gelb, 1986).Coke should have conducted thorough market research to determine the impact of changing the formulation of Coca-Cola. Coke ignored the impact of the media and social influences on consumers (Shindler, 1992). The New Coke incident happened in the days before the proliferation of social media. The public backlash would probably have been much greater if such a decision were to be made in the present.