Last year Coca Cola announced that it would drop the word "Classic" from "Coca-Cola Classic", thereby-as Bloomberg reported it-"writing the final chapter in one of the greatest marketing blunders in U.S. business history." That might be too harsh: New Coke was a tactical blunder but a strategic victory, and it offers us a few lessons about market research along the way.
In the early 1980s, Coke (the drink) was steadily losing market share to Pepsi-Cola. One reason was that Diet Coke had cannibalized Coke sales, quickly rocketing past 7-Up to become the #3 soft drink in America. Another reason was that Pepsi had been positioning Pepsi-Cola for the youth market in the 1960s and was winning a greater share of new cola drinkers than Coke was. Finally, Pepsi-Cola was reported to taste better.
In the early 1980s, Coke (the drink) was steadily losing market share to Pepsi-Cola. One reason was that Diet Coke had cannibalized Coke sales, quickly rocketing past 7-Up to become the #3 soft drink in America. Another reason was that Pepsi had been positioning Pepsi-Cola for the youth market in the 1960s and was winning a greater share of new cola drinkers than Coke was. Finally, Pepsi-Cola was reported to taste better.