Introducing New Coke

trodEkaterina Munter
MKTG 461: HBR Coke Case
02/08/2013

1. What is the case about? Write a ½ page executive summary of the case which includes at least 3 consumer behavior theories that are evident in this case.
“Introducing New Coke” is a unique case which describes the story of Coca-Cola and emphasizes its fascinating history. The focus of the case was on explaining how Coca-Cola became an essential element of American culture. It integrated into American lifestyle so intensively that it changed people’s perceptions about holidays (the author described how the traditional image of Santa Clause was associated with Coca-Cola’s Santa Clause), childhood, and other aspects of American life. Anecdotes and stories about Coca-Cola were passed from generation to generation, so this product earned customer loyalty. The brand was so successful that people started to recognize it not only within the boundaries of United States, but all over the world.
However, in the late 80s, one of the most serious Coca-Cola competitors, Pepsi, implemented a new marketing strategy and caught up with its market share. The competition of the two companies was primarily based on taste. Pepsi introduced a series of commercials called “The Pepsi Challenge.” Surprisingly, consumers preferred Pepsi over Coca-Cola. Pepsi’s market share skyrocketed. Concerned with Pepsi’s success, Coca-Cola decided to replace its old formula with a sweeter variation and introduced a new product named “New Coke.” The author provided a detailed report about the $4 million budget that Coca-Cola spent on market research. The public was outraged. The product was a total failure. The company was forced to go back to the original taste within three months.
Consumer behavior theories that are evident in this case: * Consumers’ perceptions * Consumers’ emotional attachment to the product * Consumers’