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
Inventedby 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
CocaCola 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 1975 1979 1984

Coke 28.4 26.2 23.9 21.7

Pepsi 17 17.4 17.9 18.8
PEPSI CHALLENGE
In mid 1970’s Pepsi changed it focus from
the Image centric campaign to product
centric campaign
Preference Preference
for Coke for pepsi
Pepsi challenge 48% 52%
Coke die hard 52% 48%
drinker test
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

Preferenc Preferenc
e for Coke e for
New Coke 55% pepsi
45%
COCA-COLA
STP
Market Target Segments Target
Market Segment
Those who People who Demographic- Demographic –
want to want to have Age Age:
quench their flavored non Family Size Teenagers &
thirst & get alcoholic Gender Youngsters
refreshed drinks Education (14 to 30
SEC 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