Essay New Coke - 1970 Words

Table of Contents Topics Page No. 1. Introduction 1 2. The Reformulation 2 3. How had the Coca-Cola management got it so wrong? 3 4. Were there less drastic alternatives? 5 5. Understanding your Loyal Customer 6 6. Conclusion 7 Reference 8 1. Introduction Coke was invented by Dr. John Pemberton, an Atlanta pharmacist and his three-legged brass pot all the way back in 1886; by 1985 Coke was closing in fast on its centennial anniversary. (Cook, 2002) Coke along with the legendary chairman Roberto C. Goizueta had witnessed a remarkable set of accomplishments during the 1980s. There were some creeping problems, however. The 87-year old rivalry between Coca-Cola, the†¦show more content†¦3. How had the Coca-Cola management got it so wrong? The one central mistake in Coca-Colas decision to change the formula was maximization. When Goizueta became chairman in 1981, he was determined to be the chairman of change. His aggressive attitude helped reinvigorate what had become a sluggish company. Goizueta started shattering tradition early in his tenure. Putting the sacred Coke name on a new product for the first time, he had introduced diet Coke in 1982 followed by another new product Cherry Coke in early 1985. (Bastedo Davis, 1993) Goizueta had moved the company aggressively and successfully into new fields, buying Columbia Pictures in 1982. (Bastedo Davis, 1993) Goizueta and the other executives were getting caught up in the success of their previous changes and decided to make one grand decisive move to recapture the soft-drink market they were losing to Pepsi. Cokes only deviation from the standard sequence in market research was that the quantitative survey of individuals appears to have been done before rather than after the focus groups. The results of the focus-group phase and the survey conflicted. Although both the focus groups and the survey had provided indications that there would be consumer dissatisfaction, the survey results indicated that this dissatisfaction would be limited to a small segment of the market; the focus groups suggested the dissatisfaction would be widespread. The researchers trustedShow MoreRelatedCase Study : Introducing New Coke Essay915 Words   |  4 PagesCase study analysis 1 Introducing New Coke Yue Yang (Rose)  Introduction Coca-Cola, as the leading brand in the world, has the highest position in soft drink industry. Its outstanding product â€Å"Coke† has been won the heart of everyone. However, in this case, we realize that they had a failed attempt at introducing the new product called New Coke in 1985. Firstly, the author introduces the history of the Coca-Cola; and how the brand is successfully developing into the most popular brand andRead MoreEssay about Introducing the New Coke2308 Words   |  10 PagesHBR Case Study: â€Å"Introducing New Coke† 1. What is the case about? This case study is the story of Coca-Cola, its history and the report about one of the most fascinating stories about the company this is still regarded by many as a mysterious case: â€Å"the introduction of the new Coke†. The author Susan Fournier, in the case study went on by presenting the history of the Coca-Cola Company: how the company started and how throughout its history it became a brand, a part of everyone’sRead MoreNew Coke Failure3901 Words   |  16 PagesFailure of New Coke Wright State University MKT 3500 - 01 Marketing Research By Nicole Fore Taylor Gilliam Ashley Hatton John Petry Abstract During the 1980’s Coca-Cola was faced with a potentially company killing problem. 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During mid 1970s, Pepsi has ran a the famous â€Å"Pepsi Challenge† of blind taste tests on all the commercials to show that the majorit y preferred Pepsi than Coke based on its teste. By 1977, Pepsi had exceededRead MoreCase Discussion Questions Coca Cola1023 Words   |  5 PagesWhy do you think that Roberto Goizueta switched from a strategy that emphasized localization towards one that emphasized global standardization? What were the benefits of such a strategy? Roberto Goizueta, a Cuba immigrant who became the CEO of Coke in 1981, switched from a strategy that emphasized localization ( which focuses on increasing profitability by customizing the firm’s goods so that they provide a good match to tastes and preferences in different national markets)to one that emphasizedRead MoreThe Real Lesson of New Coke5544 Words   |  23 PagesThe Real Lesson of New Coke: The Value of Focus Groups for Predicting the Effects of Social Influence By Robert M. 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In order to understand the integrated brand promotion strategy of Coca Cola, it is of crucial essence to delve intoRead MoreCompetitive Advantage, Product Leadership, And Customer Intimacy818 Words   |  4 Pages(Ferrell, 2011). Continually, organizations like Coca Cola, 3M, and Microsoft work to gain ground against their competitors by routinely reinventing themselves. Just think about the changes Coca Cola has made in the last 25 years, such as New Coke, Coca Cola II, and Coke Classic all in an attempt to maintain market leverage. Customer Intimacy is a result of a company focusing on the customer causing an affection for the company, which in turn creates a relationship and mutual admiration (Kryszak, 2012)