Bautista, Zven P. Ms. Edna I.

Deauna

BSBA – MktgMgt (MAR224) March 16, 2023

CASE STUDY #2

COCA-COLA

 Statement of the Problem:

- In the 1980s, Pepsi was Coke's strongest competitor and continues to rule the
market. The business later decided to create a new, sweeter drink and
branded it New Coke after reevaluating its current offers. Yet not everyone
favored the New Coke's composition or overall appearance. Because more
customers still prefer the old Coke, management opted to withdraw the new
one and replace it with the older and more established formula. As a result,
Coca-Cola Classic was born.

 Background of the Study:

- Coca-Cola, also known as Coke, was initially advertised as a temperance drink
and a patent medicine. It was invented in the late 19th century in Atlanta,
Georgia by John Stith Pemberton. Pemberton sold the ownership rights of
Coca-Cola to Asa Griggs Candler, a businessman and politician, in 1888.
Candler went on to start The Coca-Cola Corporation in 1892 and grow it into a
huge corporation.
The Coca-Cola Corporation has introduced various cola drinks under the
Coke brand name on occasion. Diet Coke is the most well-known of these, but
there are also Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free, Coca-Cola
Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla, and special varieties with
lemon, lime, and coffee. Coca-Cola Classic was marketed as a separate product
from "New Coke" from July 1985 to 2009.
The New Coke began as a response to their rival Pepsi-Cola and the rise of
their advertising campaign "The Choice of the New Generation" in 1984.
However, soon after the new beverage drink was released, it garnered a lot of
 criticism, mostly from people who missed the old taste of Coke. Thus Coca-
Cola Classic was born.

 Alternative Courses of Action:

- Conducted a SWOT Analysis on the introduction of New Coke.
- To avoid being dragged down by the failure of the New Coke, the corporation
paid attention to the complaints and replaced the New Coke with the previous
formula right away.

 Action Plan:
- The Coca-Cola Company decided to stop making New Coke after receiving calls
and complaints from consumers. They began to immediately remove it and
replace it with Coca-Cola Classic. In July 2002, the New Coke was finally
completely phased out.

 Conclusion:
- Pepsico has been the Coca-Cola Company's main competitor, and the cola
wars have continued until the 1980s. With Pepsi targeting the newer
generations at the time, Coke needed to come up with something that would
also appeal to the younger crowd. When the New Coke was introduced,
people didn't like it because they thought it was overly sweet and preferred
the older kind. This had been the worst marketing campaign in Coke's history
as a result of this. They gradually ceased making the New Coke and switched
back to the original Coke, which was then known as Coca-Cola Classic. This is
due to the fact that the company paid attention to the complaints it was
receiving every day and in 2002, the New Coke has been discontinued.

 Recommendation:
- The Coca-Cola Company was lacking diversity during those difficult times, and
lessons had been learned in that regard. In order to make room for additional
offerings without jeopardizing the primary brand, they had been working with
and purchasing other brands. Now, they serve more than 200 countries and
offer 500 brands to its customers.