Done by:Ahmed mohammed

Abdilaziz mohammedAbdulrahman osman

Faisal mohammedUpendo.

introduction

• History of coca cola

• What were the effects of introduction

• Why was the new coke introduced

• Reason for the return of classic coke.

• Conclusion in forms of the mistakes learnt

Background• The name coca cola was suggested by john

pemberton’s book keeper frank Robison.

• In 1887 assa griggs candler bought the

company shares and incorporated it in 1888.

• 1893 coca cola was registered in the u.s

patent office.

• 1895 coca cola is now drunk in every state in

the us

Old Coca-Cola ad Thirst Asks Nothing More (1938 ) - Google Chrome.flv

Background

• Trade name of sweetened

carbonated drink

• Originally made with cocoa leaves

and flavored with cola nuts along

with caramel and caffeine

• Started in 1886 grabbing the market

of USA in 1895 and expanding up to

200 countries in 2000

Reasons for new coke introduction

•Loosing market share

•Brand image affected

•Beating the rival

CBC Archives New Coke Is It! 1985 - Google Chrome.flv

Loosing market share

• The company had lost its market share though

remaining competitive

• By 1970 the overall market share had dropped to 4.9%

• By 1984 the overall market share of the company

dropped to 9.8%

Brand image affected

• The company was not only loosing share to

the rival Pepsi but also to other brand created

by itself.

Example:-Diet Coke went on to become the

most successful consumer product launch of

the 1980s

Beating the Rival

• The market share kept declining to Pepsi though the excess vending machine kept the price competitive• The market share of coke

remained stagnant while the rival kept catching up• The taste of Pepsi kept

winning the new customers

The launch of new coke

• Coca-Cola launched New Coke in April 1985 with the punch line 'Catch the wave' • change in Coke's formula

was publicized through the television and newspapers

1985 New Coke commercial.mp4

Effect of new coke

• Loss of existing customers

• More decline in the market share

• Rival emerged victorious

• Re launch of the classic coke

Loss of existing customers

• The existing customers did not like the new coke in term of its taste and switched to other brands.

• Many of the existing customers boycotted the new coke showing the sign of dislikeness.

RuPaul & Potsy Save The Real Taste of Coke.mp4

More decline in the market share

• An unexpected twist happened in the existing market of coke

• within 79 days the market share dropped to such an extent that it was considered as one of the greatest American market failure

Rival emerged victorious

Rather than beating the rival the strategy paved a way for the rival to get more customers.

Relaunch of the classic coke

• The company soon realized the mistake they made and the old flavored was launched again as coke classic

‘We did not understand the deep emotions of so many of our customers for coco-cola’

― Donald R. Keough Coco-cola president

REASON FOR RETURN OF CLASSIC COKE

• PUBLIC BIDDING EMOTION TO

ORIGINAL COKE

• US HERITAGE DISPLAY ON THE

CLASSIC COKE SUCCESS

• PEPSI GAINED GROUND ON

COLA

US HERITAGE DISPLAY ON THE CLASSIC COKE SUCCESS

Coke had spent more than a hundred years convincing the North American population that its product was an integral part of their lives, and their very identities. to do away with Coca-Cola was violating their identity and they weren't going to stand for it, and they therefore weren't shy about saying so. Sneak Peek Coca-Cola Super Bowl Ad - Google Chrome.flvCoke Apollo Moon Mission 1969 Commercial.mp4

PEPSI GAINED GROUND ON COLA

• By the end of 1985 Pepsi had more market shares than the combined market share of new coke and coke classic• By end of 1987 from

market cokes share of 3 percent it come down 0.1

Conclusion• Coca Cola is one of the most recognized brands

on the globe and the main factor behind their success is their Marketing Strategy.

• Mistakes:-can cause the shutdown of the company.

• Before making any changes to the company or introducing a new product, it is very important to find all relevant information related to it, and to accurately anticipate results.

• It is also Important to define the goal and reason for Market Research before conducting it and every detail must be considered while conducting it.

• Market Research can only guide in making decisions, but ultimately it is the decision of the top level in the organization.

• Not a Marketing Ploy, thus considered as marketing Blunder.

• Coca-Cola decided that the survey results were more reliable than the feedback they got from the focus groups.

Conclusion

• Not well planned. Coke lost a lot of sales to Pepsi, sales that Pepsi would have never gained if new coke was not unleashed.

• Discontinuing the production of the existing brand(old coke) knowing the product is new in the market.

Conclusion

Q & A

THANK YOU