One of the stranger episodes in corporate marketing history occurred in 1985 when the Coca-Cola Corporation decided to alter the secret formula of its flagship product.
Maybe Republican Party leaders could stand a review.
Coke was more than just an iconic brand. Coke invented Santa Claus as we know him today. The hourglass Coke bottle’s silhouette identified the product universally. So sacrosanct was the Coke name that the brand line consisted of a single product until Diet Coke was introduced in 1982, 96 years after Coca-Cola’s market debut.
Concerned by Coke’s loss of market share to arch rival Pepsi, Coke’s marketing gurus gave in to the taste tests and focus groups by releasing New Coke in 1985. New Coke matched the sweeter crowd appeal of Pepsi. It was designed to compete head-to-head for the Pepsi Generation.
But the Coca-Cola Corporation had not counted on the resentment of a hard-core nucleus of consumers to the absence of their familiar Coke from store shelves and soda fountains:
Despite New Coke’s acceptance with a large number of Coca-Cola drinkers, a vocal minority of them [estimated to be 10-12% of Coke drinkers] resented the change in formula and were not shy about making that known ….
Due to the strong backlash, Old Coke, newly dubbed “Coke Classic”, was returned to market less than three months after the launch of New Coke. Eventually New Coke disappeared from store shelves.
And Classic Coke emerged a stronger brand than before.
The lessons?
- Ignore your most passionate customers at your peril.
- Don’t trust focus groups. People in focus groups are easily swayed.
- Don’t compete by trying to be more like the competition.
- Recognize your mistakes quickly, take your lumps, and concentrate on the brand.
Moe Lane
Steve Maley
KnightsofMalta
Dan Spencer
Dan McLaughlin
Great parable
JoeG Tuesday, November 3rd at 12:21AM EST (link)I just like to think that we make up more than 15% of the vocal minority!
This, of course, is all assuming you don't believe in the "Great Cane Sugar/Corn Syrup Switcheroo" conspiracy theory
Third Street (Diary) Tuesday, November 3rd at 12:31AM EST (link)But the point is well taken.
“Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” –Wilkins Micawber, “David Copperfield”
"Great Cane Sugar/Corn Syrup Switcheroo" conspiracy theory
Michael Dugas (Diary) Tuesday, November 3rd at 12:58AM EST (link)If you are talking about the switch from Cane Sugar to Corn Syrup than it’s true. You can buy Coke made with the Cane Sugar during
Jewish High Holidays as it’s Kosher and the mix with corn syrup isn’t.
I usually buy some of that Coke during the holidays, pricey but it Rox!
And glass bottles are the best tasting……
And I am living proof you can survive on Coke…..I am a Coke-A-Holic.
Intro to Federalist Papers; section 5;
paragraph 4.
“…dangerous ambition more often lurks behind the specious mask of zeal for the rights of the people than under the zeal for a firm and efficient government.”
Remember: A Citizen on the dole is a Liberal Vote at the Polls.
END ENTITLEMENTS!
Si Vis Pacem, Para Bellum !
Cute link
JoeG Tuesday, November 3rd at 1:07AM EST (link)I only scored 13 on the Obama Test
The Real Thing comes from Mexico.
Third Street (Diary) Tuesday, November 3rd at 3:33AM EST (link)When I lived in southern CA I discovered the “Mexican Coke” — real cane-sugar Coca-Cola, bottled in Mexico, available 365 days a year.
Moved back to Louisiana, and whaddya know: Mexican Cokes are being stocked in stores all over the place. I don’t know if they’ve gotten national distribution or if I just got extremely lucky, but I continue to enjoy my original, unadulterated Coca-Cola on a regular basis.
As for the Switcheroo theory, I’ve never been sure whether to believe it or not but it wouldn’t surprise me at all.
(Apologies for the semi-threadjack but the stuff is just so damned good!)
“Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.” –Wilkins Micawber, “David Copperfield”
Mexican Coca-Cola is MUCH better to my taste,
Achance (Diary) Tuesday, November 3rd at 7:52AM EST (link)but then I hark back buying the small bottle, the only size then, for a nickel out of the top-opening box filled with ice water. In Mexico, PV anyway, it’s still the glass bottle and the wooden crates in lots of places. And I still can’t much bring myself to drink it, or anything else, out of the can.
In Vino Veritas
Mexican Coke Rox
Michael Dugas (Diary) Thursday, November 5th at 4:26PM EST (link)I lived in El Paso for years and would get it by the case weekly in Jaurez.
Intro to Federalist Papers; section 5;
paragraph 4.
“…dangerous ambition more often lurks behind the specious mask of zeal for the rights of the people than under the zeal for a firm and efficient government.”
Remember: A Citizen on the dole is a Liberal Vote at the Polls.
END ENTITLEMENTS!
Si Vis Pacem, Para Bellum !
New Coke
cooperscopy (Diary) Tuesday, November 3rd at 1:21AM EST (link)New coke tasted sweeter, but it just didn’t have the same zip as old coke….
Ron Victor
Excellent analogy Vladimir!
Whitehorse (Diary) Tuesday, November 3rd at 2:19AM EST (link)I posted something similar at Rebuild the Party a while back. http://rebuildtheparty.ning.com/profiles/blogs/the-new-coke-lesson-for-the
I hope & pray that either the leadership learns the lesson quickly or is replaced by those who already have.
New Coke did taste sweeter on the first drink, but was not satisfying. It didn’t have “lasting” power.
They're trying to peddle RC, Faygo, or Towne Club, Cola...
JLenardDetroit (Diary) Tuesday, November 3rd at 2:44AM EST (link)sometimes I’ll buy the local flavor, but where there is no need (Coke Classic is available) I want “The Real Thing!”
Regards from NoMoTown (the MOTORlessCITY)
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I want “O” to FAIL (here, here, & whole Diary (Ofail) here, is why)
“The first Liberal was Satan” – a Rush caller (other Quotes)
Scozzafava doing Robocall supporting Bill Owens
katesmith (Diary) Tuesday, November 3rd at 2:49AM EST (link)On his radio show Phil Hendrie just played a tape of her robocall for Bill Owens. She identifies herself in the call. Hendrie has a political/satire/comedy talk radio show. I’ve listened to him for many years and think he would have said it was a joke if that were the case. She says that Owens will best continue McHugh’s work. (He went to work for Obama). This robocall should be sent in a continuous loop to Gingrich, Sessions, et al. Just more evidence of their complete failure..
I liked New Coke more
kyle8 (Diary) Tuesday, November 3rd at 6:21AM EST (link)but then again, I prefer Pepsi to coke.
Now I drink a small brand cola made with zero sodium, and sweetened with cane sugar, but not as much sugar as either coke or pepsi. (gotta watch the weight, but I can’t stand diet crap)
“Nothing works like freedom, Nothing succeeds like liberty”
Kyle
Interesting discussion Vlad. And, while I don't know just what
mbecker908 (Diary) Tuesday, November 3rd at 8:03AM EST (link)brand of cola the NRCC & NRSC are passing off, I do know what brand they’re using “in-house” when the so-called leadership gets together, and that’s imported from Columbia.
I think it is actually found
The_Gadfly (Diary) Tuesday, November 3rd at 10:01AM EST (link)in the powdered drinks section, not the soda/pop section.
The only bit they got wrong
The_Gadfly (Diary) Tuesday, November 3rd at 10:00AM EST (link)was the estimated size of the vocal minority. I myself drink Coke, fully leaded, not Pepsi precisely because I prefer the taste. If I wanted Pepsi, I’d buy actual Pepsi. I never sent any letters or said anything to anyone other than my friends. If it was only 12% of us, they could never have justified moving back to “classic.” My guess is it was more like 80% preferred “classic” to “new.” Certainly if it had been anywhere near a 50-50 split they would have maintained both production lines. And that has implications for the GOP too. As in sooner or later you need to meet the demand of your consumers or you are finished as a successful brand.
Not sure what coke they're selling, but the coke they're consuming
bk (Diary) Tuesday, November 3rd at 10:05AM EST (link)seems to be in the form of crack.