Market

Market and Consumer Research Notes

New Coke was the reformulation of Coca-Cola introduced in 1985 by The Coca-Cola Company to replace the original formula of its flagship soft drink, Coca-Cola (also called Coke). New Coke originally had no separate name of its own, but was simply known as "the new taste of Coca-Cola" until 1992 when it was renamed Coca-Cola II.

The American public's reaction to the change was negative and the new cola was a major marketing failure. The subsequent reintroduction of Coke's original formula, re-branded as "Coca-Cola Classic", resulted in a significant gain in sales, leading to speculation that the introduction of the New Coke formula was just a marketing ploy.[1]

Coca-Cola's most senior executives commissioned a secret effort named "Project Kansas" — headed by marketing vice president Sergio Zyman and Brian Dyson, president of Coca-Cola USA – to test and perfect the new flavor for Coke itself. It took its name from a famous photo of that state's renowned journalist William Allen White drinking a Coke that had been used extensively in its advertising and hung on several executives' walls.[4] The company's marketing department again went out into the field, this time armed with samples of the possible new drink for taste tests, surveys, and focus groups.

The results of the taste tests were strong – the sweeter mixture overwhelmingly beat both regular Coke and Pepsi. Then tasters were asked if they would buy and drink it if it were Coca-Cola. Most said yes, they would, although it would take some getting used to. A small minority, about 10–12%, felt angry and alienated at the very thought, saying that they might stop drinking Coke altogether. Their presence in focus groups tended to skew results in a more negative direction as they exerted indirect peer pressure on other participants.[5]

The focus groups had provided a clue as to how the change would play out in a public context, a data point that the company downplayed but which...