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Introducing New Coke: A Group 9 Presentation

This document summarizes Coke's introduction of New Coke in the 1980s. It presents a SWOT analysis showing Coke's strengths in brand equity and culture but weaknesses in legal issues and failed diversification. It then describes Coke replacing its original formula with New Coke in response to Pepsi's "Pepsi Challenge" campaign, but consumer reaction was negative due to New Coke lacking the symbolic value of original Coke. The document questions if Coke should have leveraged its strong brand rather than competing on taste, and if the introduction of New Coke was a case of "Marketing Myopia" where Coke lost sight of its cultural significance beyond just taste. It ultimately concludes Coke's experience with New Coke shows the limitations of even large brands in understanding consumers

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39 views

Introducing New Coke: A Group 9 Presentation

This document summarizes Coke's introduction of New Coke in the 1980s. It presents a SWOT analysis showing Coke's strengths in brand equity and culture but weaknesses in legal issues and failed diversification. It then describes Coke replacing its original formula with New Coke in response to Pepsi's "Pepsi Challenge" campaign, but consumer reaction was negative due to New Coke lacking the symbolic value of original Coke. The document questions if Coke should have leveraged its strong brand rather than competing on taste, and if the introduction of New Coke was a case of "Marketing Myopia" where Coke lost sight of its cultural significance beyond just taste. It ultimately concludes Coke's experience with New Coke shows the limitations of even large brands in understanding consumers

Uploaded by

Ñagáşaï Bøïnâ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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INTRODUCING NEW COKE

A GROUP 9 PRESENTATION

Brand Equity Model shows the superior


position enjoyed by Coke

SWOT Analysis shows Cokes situation


STRENGTHS

Positive customer-based brand


equity
Deeply imbibed in the American
culture
Huge loyal customer base

WEAKNESSES

OPPORTUNITIES
Younger generation, the
untapped market
Build on their considerable loyal
base
Horizontal Growth
Diversification
THREATS

Too much emphasis on legal issues Complacency towards


Loss of focus; failed
competition, never been
diversification attempts
tested against a rival
Fragmented leadership; no strong
leader

Leadership
High earnings / high potential

Energized Brand Strength


(Diferentiation / Relevance / Energy)

Niche
Low earnings / high potential

DEREK

Coke

DEREK

Declining

DEREK

High earnings/ low potential

Eroded

Pepsi

Seriously challenged

New
DEREK

New Coke

DEREK

Unfocused
DEREK

Brand Stature
( Esteem / Knowledge )

NEW COKE INTRODUCED

PEPSIs reaction Epitome of good marketing


strategy, and making the most of an
opportunity (crafting strategy)

Consumer Reaction Diference between


taste tests and actual reactions extent of
COKEs symbolic value

Retraction by COKE Sales went back up

What went wrong?

Should they have leveraged their symbolic


value, rather than playing Pepsis game (taste)?
Strong & Loyal Customer base, emotional connect.

Taste was never the focus, or for that matter, the issue

Pepsi focused on taste Pepsi Challenge


campaign
Published results of Blind Taste Tests

Coke played into Pepsis hand, by competing on


taste

Coke tried to compete with Pepsi on their turf


Pepsi ensured customers saw this as Coke admitting
defeat

Was this a case of Marketing Myopia?

Coke was a national institution of America

Coke was a symbol of American culture rather


than just a refreshing drink

Coke should have realized they were more


than just a beverage for the American people.

Changing the taste (even to improve it) was a


short-sighted strategy.

Did Coke rush their decision to withdraw?

Initial decision was to wait out till the end of the year

Early June - New Coke beating Pepsi in Blind Taste Tests

Mid June Sudden downturn, Pepsi overtakes New Coke

July 11 Coke is back!!

only 1% of those who did not like the reformulation were


switching brands was the situation as drastic as it was
perceived to be?

2 months Is it enough for people to get used to a new


drink after 80 years of the same taste?

Should Coke have gone for more


advertising?

Pepsi was aggressively advertising Coke


admits defeat

Coke cut their advertisement budget in half

Should they have gone for more Aggressive


Marketing, to divert attention from Pepsis
strategy?

Or did they have to reduce the exposure of


their brand?

Or did they really fail, after all?

were not that smart, and


were not that dumb!!!

THANK YOU

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