new coke failure case study answers

So this was an extraordinary amount of money to be paid to a celebrity for a sponsorship deal in the early 1980’s. 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. The efforts to launch a new product began as a tactic to combat Pepsi’s taste test marketing campaign, in which consumers where shown preferring the taste of Pepsi over the original Coke product. New Coke Case Study The failure of the introduction of New Coke raises the question of who was responsible for this notorious flop. Its reintroduction was driven by John Sculley, who would later go on to run Apple and sack Steve Jobs. There was increasing “pressure” on maintaining retailer relationships (e.g. The new flavor outperformed both traditional Coke and Pepsi in market research taste tests. You are the marketing manager responsible for the Coke brand. But Pepsi’s taste preference was impacting these contracts. Much has been written about the New Coke new product development and launch in 1985 and there have been numerous case studies published in various textbooks, along with numerous books. You have concluded that the new formula is clearly preferred by respondents in blind taste tests against both existing Coke as well as Pepsi. 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. It provides details about the market research study conducted by Coca-Cola prior to the launch of New Coke. How would you avoid such mistakes if you were a market researcher? Coke were running more aggressive sales promotions and discounting in stores (to reduce the impact of the Pepsi Challenge advertising). <> The Advanced Positioning Simulation Game (Now Free), The Expert-level Marketing Simulation Game, Advantages of these Marketing Simulation Games, Key Differences between the Simulation Games, The Practical Marketing Workbook in Hard Copy. Coke had increased their advertising and promotional spending from $50m to $200m in recent years. endobj endobj If your assignment is plagiarised, we will give you £ 2999 in compensation.

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. You are rational in your approach, but will force the other players consider both the up and downsides of their preferred solution. These were filmed and the reactions of loyal Coke drinkers that chose Pepsi were shown as “reality advertising”. 2. Pepsi was consistently closing the market share gap on the market leader, with Coke’s market share fell from 24.3% to 21.8% (down 2.5%) from 1980 to 1984. 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� Pepsi signed Michael Jackson to make two TV commercials and to sponsor his concert out just before “Thriller” took off – which became the biggest selling album of all time. Pepsi started outselling Coke in the “free-choice” channels, such as supermarkets, grocery stores and drug stores as early as 1977. To offset this discount, Coke started to increase prices to their captive customers (such as the fast food chains). Overall their market share was surely and steadily declining in a declining market (down from 24.3% in 1980 to 21.7% in 1984) . They had achieved success through a strategy of outsourcing manufacturing and logistics to licensed bottlers, strong retailer relationships, and building a very strong brand. He was involved in editing the TVC. You bottle and distribute Coke products in a defined geographic area . Because of this initial relative competitive position, Coke believed their product was superior and that they had an entitlement of being the market leader. %���� This New Coke case study is undertaken as a role play exercise, where each student in the group will take the role of one of the following participants. You are generally excited about new products, such as the highly successful Diet Coke, but you did notice that many retailers stopped ordering Tab (Coke’s existing diet cola drink) due to the retailers’ unwillingness to dedicate too much shelf space to Coke products.

Allow student groups around 30 minutes to review the case, decide roles and discuss and debate their final marketing strategy.

Your business is quite large in its own right and you employ many 100’s of staff. Case Study – New Coke: A Classic Brand Failure.

It was this kind of persuasive argument that helped convince the Burger King chain switch from Coke to Pepsi two years ago.

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.

Get the PDF eBook for just $29. Coke was able to maintain its market share lead because of its distribution and retailer relationships (e.g. You are the final decision maker for group. Over 300 activities and discussion exercises are provided on this website. The launch of New Coke turned out to be a nightmare for Coca-Cola. 3. It was hugely successful, becoming the 3rd best selling drink in the market, behind Coke and Pepsi, making it one of the most successful new products in FMCG marketing history.

For example, a number of the bottlers took legal action against Coca-Cola to get a better deal with Diet Coke and some bottlers stopped manufacturing Tab (Coke’s existing diet cola drink) because it is a logistic challenge to manufacture multiple drinks. I agree to receive phone calls from you at night in case of emergency.

����9�g�-�6��݋��{���3�}�r|��}� ]C�uo����U6 Qualified Writers . End of Life and Palliative Care Optional Module. 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.

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