Abstract

On April 23, 1985, Coca-Cola, the largest aerated beverage manufacturer of the world, launched a sweeter version of the soft drink named ‘New Coke,’ withdrawing its traditional 99 years old formula. The caselet examines the factors that prompted the company to undertake such an initiative. It provides details about the market research study conducted by Coca-Cola prior to the launch of New Coke. The caselet explains the marketing and financial implications of the launch of New Coke. Finally, it discusses the subsequent withdrawal of New Coke and the re-launch of Classic Coke.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Challenges in marketing research
• Importance of brand loyalty
• Emotional attachment of consumers with brands
• and Product management and new product development.

Keywords

Coca-Cola, Aerated Beverage, New Coke, Roberto Goizueta, Market Leader, Market Share, Pepsi, Market Research, Focus Group Research, Consumer Dissatisfaction, Marketing Strategies, Customer Relationships, Coke Loyalists, Coke Classic, Emotional Attachment, Customer Goodwill