Failiure of New Coke

Essay by arjun9110College, Undergraduate November 2014

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Critique 1: Failure of New Coke

According to the American Marketing Association, brand is a form of representation of the consumer experience with a certain product or service and often refers to logo, name, and slogan. The factors influencing branding are the expectations of the consumer, design and product packaging, advertising, public relation, etc. (AMA, 1995). In today's world it is very important to develop and enhance the brand to be considered in the market. To have your product successful in market branding is very important which will deliver the message of the company about the new product, increase credibility, motivates the buyer and builds brand loyalty. Coca Cola as a brand is one of the most recognized brands in the world. Before launching any new product in the market they undergo various processes of understanding if the consumers will like their product or not. These market research are conducted surveys, focus groups, IDI (in-depth interviews), online forums etc.

Knowing the market and their consumers has made Coca Cola a successful brand and has increased their brand loyalty. But in 1985, they were responsible for one of the most catastrophic mistake in the market by introducing a new product called New Coke. [1: AMA Dictionary, "Dictionary", Date Published: 01st January, 2005, Date Accessed: 23rd June, 2009, Link:]

Coke and Pepsi are markets major competitors. Since 1960's Coca Cola's market share has been same but on the other hand Pepsi were expanding rapidly in the market. They repositioned their brand as youth which turned out to be really successful. Pepsi was capturing all the free market such as convenience store, super market etc whereas Coke had markets of restaurants, club etc because they already existed. Pepsi introduced the Pepsi challenge where the consumers were blind tasted between Coca Cola and...