new coke failure case study answers

The cumulative impact of all these marketing activities by Pepsi against Coke were designed to reposition the brands in the minds of the consumers, as shown in the following perceptual map. These were filmed and the reactions of loyal Coke drinkers that chose Pepsi were shown as “reality advertising”.

You have concluded that the new formula is clearly preferred by respondents in blind taste tests against both existing Coke as well as Pepsi. endobj x��\[o�F�~���G�h6��e`�u��'��� �"3�M��ВA��x�vUu��bK�E�c[j��._}U͋�a�=6������z�o�ۇ�ϋ��]|�|m/~k��m��v۫����&�����"�㺈�?��������$����ӏ?�y�u��g}߭��v��Eo�o��:�����9_�ӳh�����?��U ��8"Kb����;xj�W�����_��[���O��"?�[��aC�Ʀ��k����j����Sz:�H�,�3� �u�rY�\��������{\�% /j�h�Dq������B�@�2M�,�}�eE������%J��N�T�y5{�2�e�������&�ު����:��^mv6v���эj64x��m��oC�{V����@G�.&B*.zf�Yg��L�]��� ���wX5�`���K�8���V�:G�H��Y���Jo��H����ޯ��v�Uq6�'����Q]n���c���HH����s�d� A��iϚrt���}��v��E��J��2Z��?�qn&����g�疛6C���5�f�A%2NS=��NY%��m��$��d�8%Y\�M�l�HKh�5�n��m6�9��� ]&�HQ~IDq��$M�$�����W�\��6���벸Z�����l�N��+!.��zҏc�����M?�*�름��+o��.�^�nzBj��h&%=.�`��d@�QO>+l!�O��yb#pe� %PDF-1.4 You are the final decision maker for group. This period – 1970s and 1980s of aggressive promotions and comparative advertising between Coke and Pepsi is now referred to as the “Cola Wars”. The Pepsi Challenge consisted of a blind taste tests with consumers.

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Its reintroduction was driven by John Sculley, who would later go on to run Apple and sack Steve Jobs. Outline why your proposed competitive strategy will be successful in this aggressive period of the Cola Wars. But what is different about this case study for New Coke is that students will role play a particular character or professional in their discussions, taking into account their goals and motivations.eval(ez_write_tag([[300,250],'greatideasforteachingmarketing_com-medrectangle-3','ezslot_5',108,'0','0'])); This New Coke case study is in two parts, part one (deciding the best competitive marketing strategy against Pepsi is outlined below) and part two (deciding if and how to launch a new product – that is, New Coke) is on another page on this website. endobj 3. Order this Assignment Now: £ 99 . Unfortunately, relationships between Coke and its bottlers were not always smooth. It was this kind of persuasive argument that helped convince the Burger King chain switch from Coke to Pepsi two years ago. <> Over 300 activities and discussion exercises are provided on this website. Students use case study to write answers to the following questions 1. To offset this discount, Coke started to increase prices to their captive customers (such as the fast food chains). Because of this initial relative competitive position, Coke believed their product was superior and that they had an entitlement of being the market leader. �"�D}��^�j#�Cn Please share your assignment brief and supporting material (if any) via email here at: support@instaresearch.co.uk after completing this order process. For example, the Burger King chains switched from Coke to Pepsi in 1983. Your business is quite large in its own right and you employ many 100’s of staff. Pepsi’s “new generation” advertising campaign was designed to position Coke as old and tired and boring. (Note: Your suggested solution may or may not include a “new” Coke product solution.). All material copyright (2012-20) and for educational purposes only. The Pepsi Generation advertising, along with the tag-line “The Choice of a New Generation”, helped position the Pepsi as modern, young, innovation and energetic. +��3;̜i%�� ��

No Plagiarism Guarantee - 100% Custom Written. Although not part of the original deal, Michael offered his biggest song, Billie Jean, to be reworded and used in the Pepsi TV commercial as he didn’t like the song Pepsi was planning to use. Their $200m promotional budget was 1/3 more than Pepsi’s spend of $150m).

4 0 obj The caselet examines the factors that prompted the company to undertake such an initiative. 2. They are ideally suited to topics that only require a 10-30 minute exercise addressing a distinctive concept, rather than a detailed, all-encompassing case study. <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/StructParents 0>> You are considered a very ambitious and a highly confident marketing manager. Bottlers pay 45% of advertising costs in your area, primarily for TV air time, and you weren’t happy with the huge Diet Coke launch AND the increase in advertising costs overall in recent years. If there is general agreement on the need to modify Coca-Cola’s product mix in some way, then you can proceed to the second part of the New Coke Case Study. Your culture change program has challenged management to be more entrepreneurial, but you always insist on analysis and professional decision making, with decisions tied to financial outcomes for Coke. The launch of New Coke turned out to be a nightmare for Coca-Cola. Great Ideas for Teaching Marketing has been developed as an alternative to long case studies. Case Study – New Coke: A Classic Brand Failure. Many consumers saw Coke as a cultural icon and were angry that it was no longer available.eval(ez_write_tag([[300,250],'greatideasforteachingmarketing_com-banner-1','ezslot_13',112,'0','0'])); Primarily due to media and consumer lobby group pressure, within 80 days Coke re- introduced “Coke Classic” and offered two Coke variations along with “new” Coke. <> 2 0 obj It provides details about the market research study conducted by Coca-Cola prior to the launch of New Coke. As the marketing research manager for Coca-Cola, your prior taste test research for Diet Coke was spot on as Diet Coke became the best-selling diet soft drink on the market within two years, primarily because of its taste. O�vK2Y]M����U��|�4�U���o�}{ePP����S:SԎ�5؎J��}0V�E�rL��$. You work as a sales representative for Coca-Cola. However, in research situations where the brand was disclosed to respondents, Pepsi was less preferred than in the blind taste tests. One of the challenges you face is that the competitive Pepsi sales reps highlight that consumers prefer the taste of Pepsi and that it fits better with a younger market. To reinforce their perceived higher product quality, one of Coke’s slogans was “it’s the real thing”. This New Coke case study is in two parts, part one (deciding the best competitive marketing strategy against Pepsi is outlined below) and part two (deciding if and how to launch a new product – that is, New Coke) is on another page on this website. Coke was able to maintain its market share lead because of its distribution and retailer relationships (e.g. Is is actually possible? The launch of New Coke turned out to be a nightmare for Coca-Cola. All the activities and discussion exercises are provided free for marketing lecturers to use in their classes. Did market research actually fail in this case? 3 0 obj However, within a few days of traditional Coke being withdrawn and replaced by “new” Coke, there was a backlash from consumers and the media and their brand image was damaged. Please note that there is a page on this website that has links to relevant YouTube videos that will help students get a better understanding of the Coke-Pepsi ‘cola wars’ era. At the same time, it was designed to reposition Coke in the minds of the consumers as old, tired and boring. This product is often referred to as “New Coke”, but the intention of the packaging was to indicate that Coke was new.eval(ez_write_tag([[300,250],'greatideasforteachingmarketing_com-box-4','ezslot_6',114,'0','0'])); The product was developed and launched after years of R&D and taste testing and focus groups with consumers.

You bottle and distribute Coke products in a defined geographic area . The Pepsi Challenge also started in the 1970’s has run off and on ever since through many parts of the world. Qualified Writers . Overall their market share was surely and steadily declining in a declining market (down from 24.3% in 1980 to 21.7% in 1984) . It’s 1985 again at Coca-Cola, what is the best marketing strategy for Coke to pursue to improve their position and increase the overall profitability of the Coke brand? Every answer is different no matter how many orders we get for the same assignment. Then the ‘CEO’ of each group can present their strategy to the rest of the class. This New Coke case study role play exercise is designed for groups of six students. So this was an extraordinary amount of money to be paid to a celebrity for a sponsorship deal in the early 1980’s. When you have finished the above questions, the CEO can report their team’s strategy to the rest of the class. In 1985, Coca-Cola completely withdrew their flagship product from the market and replaced it with a “new” Coke in the US and some international markets. Was it necessary for Coca-Cola to reformulate? The new flavor outperformed both traditional Coke and Pepsi in market research taste tests. End of Life and Palliative Care Optional Module.

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