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    Assignment # 1

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    hannan rehman
    This document is an assignment submission for a marketing management course. It provides details about Assignment #1, including the course title, instructor, student submitting the assignment, and their student details. The main body discusses Coca-Cola's failed "New Coke" launch in 1985. It summarizes that Coca-Cola conducted taste tests that showed consumers preferred New Coke to old Coke and Pepsi. However, when New Coke was launched and old Coke was discontinued, there was significant consumer backlash. The key error was that the market research only considered taste and not non-physical factors like consumer brand loyalty and nostalgia. This lesson demonstrates that successful market research must account for consumer attitudes, feelings and preferences beyond just product

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    Assignment # 1

    Uploaded by

    hannan rehman
    25 views3 pages
    This document is an assignment submission for a marketing management course. It provides details about Assignment #1, including the course title, instructor, student submitting the assignment, and their student details. The main body discusses Coca-Cola's failed "New Coke" launch in 1985. It summarizes that Coca-Cola conducted taste tests that showed consumers preferred New Coke to old Coke and Pepsi. However, when New Coke was launched and old Coke was discontinued, there was significant consumer backlash. The key error was that the market research only considered taste and not non-physical factors like consumer brand loyalty and nostalgia. This lesson demonstrates that successful market research must account for consumer attitudes, feelings and preferences beyond just product

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    cola.docx

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    This document is an assignment submission for a marketing management course. It provides details about Assignment #1, including the course title, instructor, student submitting the assignment, and their student details. The main body discusses Coca-Cola's failed "New Coke" launch in 1985. It summarizes that Coca-Cola conducted taste tests that showed consumers preferred New Coke to old Coke and Pepsi. However, when New Coke was launched and old Coke was discontinued, there was significant consumer backlash. The key error was that the market research only considered taste and not non-physical factors like consumer brand loyalty and nostalgia. This lesson demonstrates that successful market research must account for consumer attitudes, feelings and preferences beyond just product

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views3 pages

    Assignment # 1

    Uploaded by

    hannan rehman
    This document is an assignment submission for a marketing management course. It provides details about Assignment #1, including the course title, instructor, student submitting the assignment, and their student details. The main body discusses Coca-Cola's failed "New Coke" launch in 1985. It summarizes that Coca-Cola conducted taste tests that showed consumers preferred New Coke to old Coke and Pepsi. However, when New Coke was launched and old Coke was discontinued, there was significant consumer backlash. The key error was that the market research only considered taste and not non-physical factors like consumer brand loyalty and nostalgia. This lesson demonstrates that successful market research must account for consumer attitudes, feelings and preferences beyond just product

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Assignment # 1

    Course title :
    Marketing management
    Submitted to:
    Ahmed Sohail
    Submitted by:
    M.Amir sultan
    Roll#:
    10399
    Program:
    BBA
    Section:
    Evening D

    Lyallpur business school


    The Cola:
    The Coca-Cola Company had always maintained the lion’s share of the cola
    market, easily outselling Pepsi five to one in the 1950s. But a genius
    marketing campaign from Pepsi in the 1980s positioned the relative
    newcomer as the young person’s drink. Pepsi pulled out all the stops:
    Celebrity spokespeople, hip advertising music, and poking fun at Coke for
    being the cola of an older generation. By the early 1980s, Coke had lost its
    grip on the soda market and only controlled 24 percent of the market
    share.The Coca-Cola Company had to make a move; especially since time
    and time again, sweeter-tasting Pepsi slayed Coke in the clever, blind, and
    very public Pepsi Challenge. Coca-Cola’s idea was to come up with a new
    Coke formula that consumers preferred over both old Coke.

    Poor Taste in Market Research:


    No one could fault Coca-Cola for not doing their research: They tested the
    New Coke formula on 200,000 subjects and came up with a drink that beat
    Pepsi and old Coke time and time again. Therefore, when it finally went to
    market in 1985, the company felt confident enough in their research numbers
    to simultaneously end old Coke production. They even took
    out commercials to prove it.The result: Consumers hated it. Coca-Cola fielded
    as many as 400,000 angry phone calls and letters as Coke drinkers professed
    their dissatisfaction with the new product. In less than three months, New
    Coke was pulled off the shelves and old Coke–rebranded as Coca-Cola
    Classic–was back.

    Customers are motivated by more than just taste:


    The most grievous error Coca-Cola’s researchers made was testing subjects
    on taste alone. Most people loved New Coke–53 percent preferred it over old
    Coke–but taste isn’t enough. Consumers make purchasing decisions based
    on habit, nostalgia, and loyalty as well.

    Cola is an identity classification:


     The research was completed during the height of the Pepsi and Coke wars,
    and consumers considered the brand of cola which they drank a part of their
    identification. Changing Coke fundamentally confused consumers’
    identification and relation to the brand.

    New Coke wasn’t a choice:


    The research was a blind taste test: What did subjects like best? But
    researchers neglected to qualify what the response would be if subjects
    understood that in choosing New Coke, they would effectively be pulling old
    Coke from the shelves, which Researchers only focused on the
    physical. What researchers failed to grasp was that while subjects could
    appreciate changed physical characteristics like taste and branding, Coca-
    Cola also had symbolic significance to buyers, particularly in the American
    market. For a group that prefers tradition over novelty, New Coke couldn’t
    hold a candle to the continuity and familiarity of old Coke, or eventually, Coca-
    Cola Classic.
    Market research isn’t just a numbers game. In failing to capture feeling and
    attitude toward the brand and relying on taste tests alone, Coca-Cola was left
    with a ton of product, cranky consumers, and a big, corporate black eye.
    It all worked out, of course. Once Coca-Cola Classic was reintroduced, sales
    actually improved over the same time the previous year (potentially because
    consumers began to hoard the product in preparation of another.Consumers
    were able to breathe a sigh of relief, and companies the world over learned
    two valuable lessons: The customer holds the cards and solid market
    research can prevent a failure of New Coke proportions could have drastically
    altered responses.

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