The case describes the introduction of New Coke in response to the Pepsi Challenge, an advertising campaign that used taste tests to support the claim that Pepsi Cola was a superior product. Instead of strengthening Coca-Cola's market share position, the product change resulted in a consumer rebellion and a publicity disaster for Coca-Cola.
The case shows the importance of market analysis, strategy design, strategy implementation and the interaction among them for a firm to achieve its objectives. It also illustrates that a product is more than its physical attributes and firms must understand what consumers really buy.
- Marketing strategy
- Consumer marketing
- Customer relations