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

ABOUT COCA COLA..CONT
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

PEPSI CHALLENGE
Aggressive marketing by Pepsi resulted in a decline in cokes market share 1970 Coke Pepsi 28.4 17 1975 26.2 17.4 1979 23.9 17.9 1984 21.7 18.8

PEPSI CHALLENGE
In mid 1970’s Pepsi changed it focus from the Image centric campaign to product centric campaign
Preference for Coke Pepsi challenge Coke die hard drinker test 48% 52% Preference for pepsi 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

New Coke

Preferenc Preferenc e for Coke e for pepsi 55% 45%

COCA-COLA

STP
Market Those who want to quench their thirst & get refreshed Target Market People who want to have flavored non alcoholic drinks Segments DemographicAge Family Size Gender Education SEC Target Segment Demographic – Age: Teenagers & Youngsters (14 to 30 years)

Psychographic Psychographic Lifestyle – Personality Fun loving Sports 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

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