INTRODUCING NEW COKE

Group A3

Anoop Zachariah (08927877) Mukul Kejriwal (08927879)

L. Gyalpo (08927892) Ravi Teja (08927883) Sidarth Mehta (08927818) Udayan Nagdeote (08927893)

CASE DESCRIPTION

Evolution of Coca Cola Early Brand building measures Pespsi Challenge Process of Introducing New Coke Reintroduction of Coke Classic

ABOUT COCA COLA

Invented by the pharmacist John Styth Pemberton in Atlanta in 1885

Beverage initially envisaged as a headache remedy

Propriership transferred to another pharmacist for a sum of $2300

Coca Cola company started in 1892 when the beverage was repositioned as a refreshment rather than a therauptic medicine

ABOUT COCA COLA..CONT

Coca Cola secret formula is amongst most well guarded secrets with no more than 3 people knowing about it at any time

Investment in distribution and marketing led to rapid advancements in profits

In 1923 Coke forayed into Europe

The present perceived caricature of the Santa clause is the gift of coca cola to the world

In 1937 coke was offered the chance to buy flailing Pepsi cola which they rejected

Coke supported the American forces during the second world war by setting up bottling plants in North Africa and Italy.

Coke started diversifying its product range with the acquisition of Minute maid and Duncan foods in 1964.

Coke distributed in 155 countries and consumed 303 million times a day

ABOUT COCA COLA..CONT

1970 1975 1979 1984

Coke 28.4 26.2 23.9 21.7

Pepsi 17 17.4 17.9 18.8

PEPSI CHALLENGE

Aggressive marketing by Pepsi resulted in a decline in cokes market share

PEPSI CHALLENGE

In mid 1970’s Pepsi changed it focus from the Image centric campaign to product centric campaign

Preference for Coke

Preference for pepsi

Pepsi challenge 48% 52%

Coke die hard drinker test

52% 48%

THE NEW COKE

In early 1985 aided by the biggest consumer preference test ever with responses from nearly 2 lakh people coke zeroed in on its formula for new coke

Preference for Coke

Preference for pepsi

New Coke 55% 45%

COCA-COLA

STP

Market Target Market

Segments Target Segment

Those who want to quench their thirst & get refreshed

People who want to have flavored non alcoholic drinks

Demographic-AgeFamily SizeGenderEducationSEC

Psychographic-LifestylePersonality

Demographic – Age: Teenagers & Youngsters(14 to 30 years)

Psychographic –Fun lovingSports freak

4P’S

PORTERS 5 FORCES

BRAND EQUITY MODEL

HOW THEY CREATED THE BRAND COCA COLA

HOW TO MANAGE BRAND EQUITY

Brand Reinforcement:

Coca Cola came back as the strong drink that America loved so much

Brand Revitalization:

Coca Cola goes back to the fun element to revitalize its brand from time to time

WHAT WAS COKE’S BRAND BUILDING STRATEGY?

WHERE DID COKE’S MEANING COME FROM?

The cocaine was derived from the coca leaf and the caffeine from kola nut, leading to the name Coca-Cola (the "K" in Kola was replaced with a "C" for marketing purposes)

WHAT COKE STOOD FOR THROUGH AGES

““The Pause that Refreshes” – 1929 “It's the Refreshing Thing to do” – 1936 "Global High Sign” – 1940 "Sign of Good Taste” & “Go Better Refreshed”

– 1950 "Things Go Better with Coke" -1963 “It’s the real thing” - 1969 “Coke is it” - 1982

HOW DID COKE’S MEANING MAKE A CONNECTION TO AMERICA AND TO CHRISTMAS? In 1931 Coke launched a

print Ad campaign which gave a popular, uniform and widely accepted image to Santa Claus.

The image of Santa Claus as the jolly old man was propagated by Coca Cola

IS THIS STRATEGY REPLICABLE IN TODAY’S MARKETING ENVIRONMENT?

Yes. Even after 130 years after the launch of Coke this kind of Brand Building strategy is still replicable in today’s market.

However such kind of efforts from the company requires lots of investment in terms of money and time

This will take a lot of effort and time and a lot of imagination by the brand managers of today

WHAT MAJOR FACTOR DO YOU THINK CAUSES THE FAILURE OF NEW COKE?

Failure to recognize the brand loyalty Did not need to fix something as the taste of

coca cola was what was preferred by the consumers The brand of coca cola was more than just a cold drink, it refers to the sentiments

Marketing research ought to have factored in the effect of discontinuation of old coke

WHAT THREATS TO THE CULTIVATION OF BRAND MEANING DOES THE CASE REVEAL?

Organizations not aware of their actual brand equity

Highlighting its unique factors Tampering with the most important

Differentiator(in this case, the taste) Over-stressing on any particular promotion

Thank You