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Juby | Failure of new coke? |
In 1984, Coke introduced "New Coke," a drink with a slightly different recipe more intended to taste like Pepsi. In the blind taste tests, New Coke fared very well and most people surveyed said they preferred New Coke over Pepsi. If this was the case, how come when Coca-cola launched the product, New Coke failed so miserably? It was a complete disaster. There were protests around the country. How does a product that tested well in market research utimately fail when on the market? |
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Andrew C
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You can't be all things to all people. You can't use a sample market research group to test brand affinity. Brand equity is a function of affinity, experience, and promotion over time.
If Sony puts out a toilet, people will rebel and say, "Sony doesn't belong in the toilet industry." Likewise, Coke tried to be the "sweet" soda and the consumers can see through that. They want the classic American taste and even though the "New Coke" tastes different and possibly better, it still "feels" like it tastes better. It's all about branding. That is why we feel safer when we drive Volvos than a Mercedes, even though both cars perform equally in crash tests.
The protests and push-back from the country was a result of Coke's up-sell agenda. People think of Coke as an all-American company. When they start trying to change their image to appeal to a larger audience, people start perceiving the "sell-out" persona. By selling out, it abandons their core market of loyal drinkers, just like Mac users getting frustrated about the Intel chip in Apple computers. The Coke loyalists don't want to feel like they are being capitalized on. No one wants to feel like a company is abusing their loyalty by shoving unoriginal, copycat products in their face. |
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geekgirl
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Because people don't like to see their favorites change. It freaks them out. When it came out, everyone was like "Oh, yeah, I really DID like the old Coke!" |
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webjnke1
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Cause the ones that liked the classic were upset about it. But I agree ... I liked the new Coke. I don't know why they couldn't just make both, and maybe they tried. |
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j_f_sebastian82
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Sergio Zyman presided over the introduction of New Coke in 1984. This was a difficult task, some would say virtually impossible. It faced two substantial problems. The first was the powerhouse of marketing at Pepsi, the second was the huge loyalty Coke had developed and New Coke would have to leap over before earning it's place in the top two best selling drinks. The cannabalism of it's own market by Coke was a bad move to start with - though one which the 'experts' thought would work. Pity they weren't marketers.
It's been the same at MacDonalds who got into Hotels at one point. Companies often look for areas to broaden thier base and make dumb moves. The 'experts' make these suggestions, but might not have to pay the price of failure the way the company does.
One interesting spin on this is what car companies do. They are now practically reinventing their range every three years, with new models. This often allows them to take advantage of reduced manufacturing costs (through technological developments) by designing the cost savings into the new model. The result is what appears to be a 'New' Ford Focus, is one adopting cheaper manufacturing techniques. It appears to be more valuable in all respects and a better car. It may well be a better car for the manufacturer, though not necessarily for the buyer (which is why new cars tend to look like one another - they're all being manufactured in the same low cost manner). We are sold this as "new Style' and a lot of other things.
If you analysed New Coke you'd probably find that the ingredients were easier or cheaper to aquire (or stored longer) than the Classic ingredients. So the
improvement was probably for the copmpany - not the consumer. As it was, Zyman made a brave decision and created a huge success by revamping Classsic Coke - so retro it's new and improved!!!! Amazing guy, and an amazing story.
If you want to know more about this guy, check out his book - The End of Marketing as we Know it. It's really a great read and essential for marketers in the 21st Century. |
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gizmogizgismo
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good question juby! I'm not sure but do you remember tab clear..you know the coke that looked like lemonade! i actually liked it but wheres that now? if you still get it in America ignore this. |
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lost_little_soul2001
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if the marketing behind the product is not sufficient the product will ultimately fail, people don't like change they stick to what they know, a person will 9/10 times return to their original brand |
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Thea
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it became a controversy and people fought over old coke vs. new coke. coke eventually brought back coca-cola classic. people don't like to have their favorite products tampered with. plus, there's so much variation between cans and bottles and fountain drinks, that it's probably hard to really know the difference outside of a controlled research environment.
it's less about taste than perceptions. |
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javelin
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People who liked Coke did not want to drink Pepsi. Coke is Coke, never mess with a good thing. Then again, that whole thing likely revived Classic Coke. Marketing genius? |
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Okivisionphoto
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Because it was a blind taste test, the consumer wasnt told that it was coke, just a coke product. We as humans look at the label and mentally know that it is something different then what we are used to and therefore will resist change. Marketers look at this all the time and thats why when they change a product they change the label also. |
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hurst7t9
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Coca-Cola is a part of American culture. To change that would be like changing the American flag to a pattern more fashionable. That being said, I liked "New" Coke and they probably should have marketed it along with Coke Classic instead of trying to replace it. |
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subbu
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The best course is to conduct another survey and to rectify. The previous survey might have been biased. Give a new name based on the survey. |
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