Coca-Cola’s goal was to propel Coke to be the number one beverage in the market. In addition, the company looked towards diversifying their portfolio of offerings by introducing other lines of soft drinks. As competitors such as Pepsi infiltrated the market, Coca- Cola lost sight of their company’s objectives. Executives became immersed in other issues such as government allegations, syrup prices, ownership of company franchises and ignored the principle issues such as the marketing and sale of their product.
Ultimately, as they faced stiff competition, Coca-Cola made the mistake of blaming the problem on the product, which led to a sweeter formula that was introduced to the market as New Coke. While during blind tests, New Coke performed
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They were the first company to stop talking about the product and started talking about the user. Therefore, attracting consumers before they became loyal to Coke.
• Consumers preferred Pepsi on during the taste challenge, which was only one sip.
• Market research could not identify the symbolic value and emotional attachment people had with Coke. It was a symbol of American culture as shown by Gay Mullins, Old Coke Drinkers Association of America leader: “We got it back. Its our heritage. It belongs to us, and we got it back.”
Alternative 1: As identified in the SWOT analysis (Appendix A), Coca-Cola lost sight of its company’s objectives. By realizing the fault in eliminating their advertising budget in half, Coca-Cola could have targeted their ads to the Pepsi Generation.
Alternative 2: Introducing New Coke alongside classic Coke would have allowed the company to win taste challenges against Pepsi. However, by introducing a line extension, it could dilute Coke’s existing sales and put more strain on the company’s bottlers’
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As stated by Iacobucci & Churchill, 2010, research design is the framework to collect and analyze data. Coca-Cola’s market research should have included both exploratory (ideas and insights) as well as descriptive (relationship between two variables) parts. Additionally, the market research should have encompasses the consumption of Coke to demographic, geographic and psychographic aspects to further analyze whether the company should tap into the Pepsi Generation or target another market. Furthermore, ethnography, the research in natural setting such as in-home use should have been conducted. If this was the case, the company would have not fallen victim to the results of the taste test and altered the original recipe. Additionally to the market research, the team should have used both individual and group methods for preliminary research and ensured that research results are the same then proceed. Market research is all about asking the right questions. Coca-Cola should have asked participants whether they would give up the original formula for a new one. Instead of asking “Which flavour do you prefer?”, they should have asked “ How would you feel if we changed thee original Coke recipe?”. If this was the case, Coca-Cola could have begun to uncover not only the deep attachment consumers had to the brand as well as realized the sensation transference that came from
Coke continuously out-stands Pepsi, even though they share a very similar taste and colour, however Coke should not be the drink that receives all the love and attention for what it offers. Despite their similar soda colour, the drinks actually contain some different ingredients, which produce a different taste, and affect the body differently. Furthermore, the way the companies markets their drinks makes a huge contribution to how successful their products will become. The major element for success however stems from their impact on society and how the companies utilize their social power to evolve. The two major soda companies are constantly head to head with one another, yet it is what they do that sets them apart.
Control of market share is the key issue in this case study. The situation is both Coke and Pepsi are trying to gain market share in this beverage market, which is valued at over $30 billion a year. Just how is this done in such a competitive market is the underlying issue. The facts are that each company is coming up with new products and ideas in order to increase their market share.
By the leader and or leaders not stating that they need a new formula, members would have probably come up with ideas such as introducing a new product instead tailored to Pepsi drinkers taste and not tinker with a winning product already. They definitely should have used a devil’s advocate to argue why their changing the formula was a bad idea, I’m sure the point of what about the current Coca-Cola’s consumers that already like and drink Coke would have come up. The most important thing was of course that they should have considered their already loyal consumers views, and not have focused so much on winning such a narrow group of Pepsi consumers, better research through surveys of their loyal customers should have revealed their feelings about a change in their beloved product and that the customer is king and not the executives when it comes to success or failure of a
Brand recognition and identification has proven to be significant factor affecting the competitive position of both Coke and Pepsi. This has proven to be a powerful and influential tool in attracting consumer brand awareness and loyalty. Coke has stuck with one basic slogan for years, without infusing new faces and sounds. Right now they are associated with being the cola for the older generation. With this reputation, they are missing out on the younger generation choosing Coke. To remain strong in the long-term, Coke needs to find a way to appeal more to the younger generation. Coke has successfully come out with new variations and sizes of drinks that have evolved with customer demands, but have not built a strong brand image where their products are identified with evolving social values and attitudes of the younger generation.
Brand Image / Loyalty: Coke and Pepsi have a long history of heavy advertising and this has earned them huge amount of...
Coca- Cola has many plants positioned around the world. Because of this, they must be sensitive to the cultural needs of their employees and consumers. The brand of Coca-Cola is seen by consumers as a product that brings families together for celebrations. The company also wishes others to view them as respecting individuals + valuing differences + representing our consumers and the markets we do business= Diversity (Coca-Cola Co).
Without a doubt, no beverage company compares to Coca-Cola’s social popularity or brand notoriety. Some people buy coke, not only because of its taste, but because it is also the most socially accepted brand. Another strength that is very important to Coca-Cola is customer loyalty. For instance, in a household where parents are avid Coke drinkers, this will be passed down to their children. Customers will continuously but Coke.
Coca-Cola began in 1886, advertised a drink that relieves exhaustion for 5 cents a bottle; 130 years later Coca-Cola is now a billion dollar corporation that sells 1.9 billion bottles a day. The bright red logo can be recognized on billboards, commercials, magazines, and any type of merchandise imaginable. “The Pause that Refreshes”, “I Want to Buy The World a Coke”, and “Open Happiness” are Coke slogans that are still repeated in the market today. Its unique flavor and stylized bottle have set it apart from competition, making it easily recognizable in all fashions.(Worldofcoca-cola.com, Coca-Cola History, 2016)Coca-Cola is considered a worldwide phenomenon. The name Coca-Cola holds a long history and many changes that got it where it is today.
Since neither of the products created the measurable sales and market share increase Pepsi needed, PepsiCo International (PCI) executives conceived of a plan to create a new tagline and re-brand all existing Pepsi products, signage, advertising materials and in-store display units. The executives envisioned a simultaneous, global campaign that would create stronger brand equity and resonance in the consumer consciousness.
By successfully introducing Diet Coke the Coca Cola company extended its parent product i.e. Coca Cola through secondary brand association. The parent product Coca Cola was familiar with the consumers and they were really interested in something new that was offered by the company which was an extended version of the existing product. The most beneficial aspect of this extension was the company was promoting its new product along with its existing product with minimal additional expenses on the marketing campaigns. The company already had a vast distribution network which made easier for the company to reach maximum number of consumers across the globe (Pendergrast
Experimentation with the new market for carbonated beverages on the decline coke has done experiments in new flavors and healthier alternatives to try to stay competitive. As well as investing in “Keurig Green Mountain is a K-Cup maker but has a new Keurig Cold that can deliver Coca-Cola through the new system.” (Cooper, 2014)
One of the strengths that research and development at PepsiCo has is their ability to keep improving their product lines. Whether it is slight changes to a recipe or developing a new flavor profile, PepsiCo has the ability to keep up with flavor trends and are still able to appeal the ever changing taste of the public. With PepsiCo being a global company, their research and development centers are located throughout the world, including China, Germany, and India (to name a few), in order to appeal to that particular demographic (“PepsiCo.” 7).
Coca - Cola : Claims, Values and Polices Coca-Cola is a well-known and cherished brand name. When people think of this name, memories tend to overflow in their heads. Why do you need to be a member? Because, not only does Coke taste great and refresh your own personal memories, it also fills you with memories of the Coca-Cola like "Always Coca-Cola", the antics of the Coke polar bears, and all of the different ads that have represented Coke over the years. Just about every ad you see, as a consumer, has tons of hidden meanings.
Coca-Cola is a company with sustainable competitive advantage. The company is innovative and has an extensive business model with boasts of a sustainable distribution network. The company was incorporated in the late 1800s to commence the production of a sweet fizzy beverage that has become the world's most known brand. Presently, the company is still on an upward trajectory as it remains one of the world's most sought-after stocks. The company's competitive advantage has shown resilience and sustainability over the years.
"Coke" is the second most recognized word throughout the whole world right after the word “Ok”. Take a moment and realize what this means. Almost everyone in the whole world knows what a Coke is and relate it to the Coca-Cola Company. The Coca-cola Company was founded in 1886. This is the same year the Coca-Cola soda was invented. I've seen people drinking this soda all my life and throughout my own life I have taken up this action as well. Coca-Cola has become very popular over the decades and has even stayed very well known the whole time. Why is that? Maybe it is because of their advertisements. This Coca-Cola advertisement expresses happiness with a Coke to persuade and even manipulate its audience with natural and pure imagery, includes