New Coke Case Study Solution
1.Why “Role of media”
The media also played its circumvent role in making headlines against the launch of a new product. Radio, magazines, and even TV shows made fun of the product by making distracting headlines, cartoons, scenarios, etc. Headlines like ‘coke were changing its secret formula’ to ‘a new coke? The Gods must be crazy’ starred the media and distracted the consumers.
Recommendations
The research and development team was really confident regarding the taste and publicity of the new product they have created by chance. The scenario came out really opposite as the public disregarded the new flavor. This is simply because the team did not consider the values and passion of people regarding the old product. The best step to be followed would have been launching the product in the industry as a second line along with the original flavor as a limited-time offer and then testing it out with the public’s reaction. If the reaction was positive, they would have constantly launched it as a second product line. Completely abolishing the product was not a satisfactory idea as people have emotional attachments to traditional flavors. The team should have raised extra revenue first for the manufacture and marketing of the product and then launched the second line and after testing for its response, established it perfectly. (Agarwal)
Tactics
The implementation plan of the above recommendation is simple as it involves raising revenue or profit first either by changing prices, as the customers are loyal so would not mind paying extra for that, and then using that beneficial revenue generation in the manufacture and marketing of new product line. Brand awareness is already established so the firm would not have to invest much in its marketing section. In addition, media can also be a source of implementing the plan. By advertising creative headlines or challenges, they can catch the game.
4Ps of Marketing
The 4 Ps of marketing are hereby very necessary as described below:
Product
The product involves the new coke with its rejuvenating flavors that stood out in the blind taste test in mass numbers. The product was a unique taste better than traditional coke and Pepsi as well. The product can achieve a unique market position as it belongs to the firm already having a renowned business legacy. It can achieve its target market very efficiently.
Price
Product price has a profound effect on the marketing of the brand. The price of the new product can be kept in resonance with the old lines it has a loyal customer base and has already established a renowned brand legacy. The customers would not mind paying at the same rate as it establishes the image of sustained product recognition among customers.
Promotion
The promotion of the product requires effective marketing skills and covering the target market. Since coke has a large demographic section, it has a significant potential market which makes targeting easy and the advertising budget low.
Place
The major place of targeting involves the same as traditional coke as the product is only an updated version of the former one. It covers a large demographic section. It should, however, mainly be focused on people having a tendency towards the smooth and sweeter flavor and avoid the target audience having diabetes or other health-related issues. Countries having strong markets should be considered first like Atlanta, Houston, and Dallas.
Conclusion
John Styth Pemberton developed Coca-Cola in the year 1965. The product proved a great success and became a passion of people. The chance that while experimenting with Diet coke, the firm came out with a new resonating flavor that withstood the blind taste test comprising of nearly 200 000 people. The new flavor was greatly liked and the firm was confident of its popularity when launched. They abolished the old product line. To one’s dismal, the result came out quite opposite and the public disregarded this change and demanded the revival of old coke. The firm did not consider the emotional attachment of the public to the old flavor.The best step to be followed would have been launching the product in the industry as a second line along with the original flavor as a limited-time offer and then testing it out with the public’s reaction. If the reaction was positive, they would have constantly launched it as a second product line..................
Appendices
Appendix 1: SWOT Analysis
Appendix 2: 5 Whys Method
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