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Date Submitted: 04/08/2016 12:20 PM
YACINE OULD-CHALAL
New Products
MRKT-365-002
New Coke Product Failure Report
Report presented to
Professor Mary S. Dellar
Desautels Faculty of Management
February 4th 2016
New Coke
Introduction
On April 23, 1985, the Coca-Cola company decided to change the formula of the world's most popular soft drink, a decision that proved to be one of the biggest marketing blunders of the century. The reformulation, often referred to as "New Coke", intended to re-energize the Coca-Cola brand by introducing a sweeter version of the soft drink, after more than 99 years without making a single change to the original formula. Not only did the company reformulate the soft drink to make it taste sweeter, but it also withdrew the Classic Coke from the market. It turned out to be a big mistake. The customers were infuriated. The firestorm of consumer protest that followed only showed how powerful and how important the original Coke was to the eyes of these brand loyal American consumers. Protest groups — such as the Society for the Preservation of the Real Thing and Old Cola Drinkers of America, lifted their voices across the country to convince the company to bring back the original formula. Songs were written, protesters at Coca-Cola events carried signs with powerful messages written such as "We want the real thing" and "Our children will never know refreshment". Some people even got depressed after losing their favorite soft-drink, which became part of their individual identities. When the taste changed was announced by Coca-Cola, some consumers panicked and decided to secure their future consumption by buying cases of coke and storing them in their basements. To emphasize how significant this decision was and how American consumers were emotionally attached to the brand which became part of their everyday life, a man in San Antonio reacted by heading to his local bottler and bought 1,000$ worth of Coca-Cola. Mr. Goizueta, at the time the CEO of Coca-Cola,...