Coca-Cola launched New Coke
- GENERAL INTRODUCTION
- SECTION 1 - DIAGNOSTIC OF THE COMPANY
- Strategic segmentation and diagnosis of business portfolio
- The overall organization of the group Auchan SA
- Corporate Structure
- Study of different strategic areas
- Finance Segment- Banks (ACCORD)
- The real estate segment (IMMOCHAN)
- New concepts
- External diagnostic
- The Macro-Environment
- Political factors
- Economic factors
- Socio-cultural factors
- Technological factors
- Environmental factors
- Legal Factors
- The Industry
- The retail Industry
- The Finance Industry
- The analysis of a strategic group
- SECTION 2 - The Auchan Group's strategy
- Objectives of French market dominance
- Strategic choices
- GENERAL CONCLUSION
This paper will start with the history of Coca-Cola, and the frame of the war that came with the launch of Pepsi. Then it will study the errors that have been committed during the marketing study conducted for the launch of the New Coke by contributing advice that is deemed useful. Finally, it will debate the fact that this strategy was a mistake of marketing or a marketing intervention by the CEO of Coca-Cola.
The American company Coca-Cola Company (TCCC) is the leading supplier of concentrates and syrups used to produce carbonated soft drinks (BGSA). It is present in nearly two hundred countries and has four of the five most soft drinks sold worldwide.
The total turnover of the company is $ 18.5 billion or 110 billion francs in net income of 3.49 billion dollars. It comes mainly from the sale of concentrates, since the company has gradually disengaged from its bottling operations and distribution of beverages.
The history of Coca-Cola began in 1886 with the development of the original formula of Coca, by pharmacist John Pemberton. His accountant Frank Robinson then proposed to call this new drink "Coca-Cola ', and drew the first design that is still used today.
To advertise the drink, it is first served free for several days. Only after that,was Coca-Cola accepted by consumers. Asa Candler a druggist in Atlanta, in 1888, bought the shares of the company and realized that this drink could be very profitable. In 1893, Coca-Cola was registered as a trademark.
In 1895, Coca was available throughout the USA. First sold as a beverage fighting mental and physical fatigue, Coca was later repositioned as a thirst quencher.
At that time, rumors begin to run, saying that cocaine would be added to the recipe for Coca-Cola. In June 1906, the U.S. government passed a new law, 'the Pure Food and Drugs Act' and a lawsuit was initiated against Coca-Cola. The trial began in March 1911 and ended out of court in 1917, Coca-Cola promised to reduce by 50% the concentration of caffeine in their drink.
In 1919, the company was sold for 25 million dollars to an investment group led by Ernest Woodruff. His first decision was to export the Coca-Cola to expand into international markets. This project at first faced some problems due to lack of enthusiasm of the local vendors, government regulations, language and cultures.
The marketing study that enabled the launch of New Coke involved several steps. First a massive interview with U.S. consumers of soft drink was conducted. Coca-Cola had interviewed approximately 2 million people. This study provides information on the tastes and expectations of different consumer groups (age, CSP, gender).
The first part of the study examined the consumer response to a change in taste of the drink Coca-Cola. 10 to 20% of respondents said they were particularly attached to Coca-Cola. Of these 10-12%, half of them showed that they were against a change of recipe, but they could possibly accept it. The other half said they were hostile to such a change.
The second part of the study examined the frequency of consumption of the beverage Coca-Cola. When questioned on a comparative basis for a preference between Coke and Pepsi, one will see that most often they preferred to drink Pepsi. Others have said that Coca-Cola is their favorite drink, and from time to time drink other beverages, in other words, they were not always loyal to the brand.
Tags: Coco Cola, history of American brand, market survey of consumers of beverages, launch of New Coke, market study