Post on 30-May-2018
8/9/2019 New cock 1987
1/18
BY
ABARAJITHAN
8/9/2019 New cock 1987
2/18
Case DescriptionCase Description
y Pepsi Challenge
y
Process of Introducing New Cokey Reintroduction ofCoke Classic
8/9/2019 New cock 1987
3/18
Coca Cola secret formula is amongst most well guarded
secrets with no more than 3 people knowing about it at
any time
Investment in distribution and marketing led to rapid
advancements in profits
The present perceived caricature of the Santa clause is
the gift of coca cola to the world
8/9/2019 New cock 1987
4/18
In 1937 coke was offered the chance to buy flailing
Pepsi cola which they rejected
Coke supported the American forces during the secondworld war by setting up bottling plants in North Africa
and Italy.
Coke started diversifying its product range with the
acquisition of Minute maid and Duncan foods in 1964.
Coke distributed in 200 countries and consumed 303
million times a day
ABOUT COCA COLA..CONT
8/9/2019 New cock 1987
5/18
8/9/2019 New cock 1987
6/18
1970 1975 1979 1984
Coke 28.4 26.2 23.9 21.7
Pepsi 17 17.4 17.9 18.8
NEED OF LAUNCHING NEW COCK
Aggressive marketing by Pepsi resulted in a decline in cokes
market share
8/9/2019 New cock 1987
7/18
The new cokeThe new cokeIn early 1985 aided by the biggest consumer preference test ever
with responses from nearly 2 lakh people coke zeroed in on its
formula for new coke
Preference
forCoke
Preference
for pepsi
New Coke 55% 45%
Goizueta and president Donald Keoughtoasting New Coke.
8/9/2019 New cock 1987
8/18
Bottlers and franchises
Taste Factor(ChallengeChampaign of pepsi)
Depleting Customer Base
Big Customer Base
Customers Psychologicalpreference
Symbol of a Nation and itsconsciousness
Distracted from objective
Failed Diversification Attempts
Old Executives( Average Age 70)
Product Oriented Promotions
Brand
Strong Heritage and culturalassociation
Secret Formula
Quality Control Programs
Powerful Ads
Distribution
Strength Weakness
ThreatsOpportunity
8/9/2019 New cock 1987
9/18
STPSTP
Market TargetMarket Segments Target Segment
Those who want
to quench
theirthirst & get
refreshed
People who want
tohave flavorednon alcoholic
drinks
Demographic-
AgeFamily Size
Gender
Education
SEC
Psychographic-
Lifestyle
Personality
Demographic
Age:Teenagers &
Youngsters
(14 to 30 years)
Psychographic
Fun loving
Sports freak
8/9/2019 New cock 1987
10/18
4Ps4Ps
Product
Coke carbonated soft drink
Packed in Contour Bottle & cans
150 ml to 2 liter
Harsh (Rough) taste
Place
Available in virtually every part of the
world (Grocery shop, super market,
hyper market, retail shops, Vending
machines at different location)
Promotion
Advertising Campaign onTV & Radio
NewspaperSponsoring Events
Brand Endorsement by celebrity
Price
Competitively priced ( $0.92 per liter)
8/9/2019 New cock 1987
11/18
Brand Equity ModelBrand Equity Model
Has more than 2800 different productsacross various categoriesDifferentiation:
It preempts many of the trends and charts a
course in themEnergy
Coca Cola is the most valuable brand in theworldRelevance
America identifies with
Coca Cola as itsdrinkEsteem
In a branded test for Coca Cola and Pepsi 65% of the people preferred coke to pepsiKnowledge
8/9/2019 New cock 1987
12/18
How they created the Brand CocaHow they created the Brand Coca
ColaCola
Initial advertisements (red color, curvedbottle, letter writing)Memorable
Derivation of the name Coca ColaMeaningful
Moved from being a cure for headaches tothe most available non-alcoholic beverageAdaptable
Coca cola extends its brands to over athousand allied products in FMCG sectorTransferable
8/9/2019 New cock 1987
13/18
Failure of Market researchFailure of Market research
Before Coca-Cola launched ;New Coke they had invested
US$4,000,000 in market research and undertook 200,000 blind
taste tests. In all these blind (unbranded) taste tests the New
Coke outperformed both Pepsi and existing Coke.
These blind taste tests were the basis of the launch of
&New Coke' in 1985.The launch created a public outcry, with Coke receiving
over 40,000 letters of complaint and over 6,000 calls a
day to the company's '0800' phone
number.
Before Coca-Cola launched ;New Coke they had invested
US$4,000,000 in market research and undertook 200,000 blind
taste tests. In all these blind (unbranded) taste tests the New
Coke outperformed both Pepsi and existing Coke.
These blind taste tests were the basis of the launch of
&New Coke' in 1985.The launch created a public outcry, with Coke receiving
over 40,000 letters of complaint and over 6,000 calls a
day to the company's '0800' phone
number.
8/9/2019 New cock 1987
14/18
How had the CocaHow had the Coca--ColaCola
management got it somanagement got it so
wrong?wrong?They had focused on the product, not the brand.
They had neglected the emotional value of Coke' to the
American public.
y They asked the wrong questions, so their research provide
irrelevant information. As one Coca-Cola official said at the
time "We betrayed a national trust". Why?
y Because they never thought to ask American consumers how
they would feel about a change to Coke, whether or not
they would want a 'New Coke'.
8/9/2019 New cock 1987
15/18
How to manage Brand EquityHow to manage Brand Equityy Brand Reinforcement:
Coca Cola came back as the strong drink that America
loved so much
y Brand Revitalization:
Coca Cola goes back to the fun element to revitalize itsbrand from time to time
8/9/2019 New cock 1987
16/18
IsIs this strategy replicable in todays marketingthis strategy replicable in todays marketing
environmentenvironment??
y Yes. Even after 130 years after the launch of Coke this kind of Brand
Building strategy is still replicable in todays market.
y However such kind of efforts from the company requires lots of
investment in terms of money and time
y This will take a lot of effort and time and a lot of imagination by the
brand managers of today
8/9/2019 New cock 1987
17/18
8/9/2019 New cock 1987
18/18