a presentation about the introduction of new coke and its affect on americans,,,,,,

1. Done by: Ahmed mohammed Abdilaziz mohammed Abdulrahman osman Faisal mohammed Upendo.

2. introduction History of coca cola What were the effects of introduction Why was the new coke introduced Reason for the return of classic coke. Conclusion in forms of the mistakes learnt

3. Background The name coca cola was suggested by john pemberton’s book keeper frank Robison. In 1887 assa griggs candler bought the company shares and incorporated it in 1888. 1893 coca cola was registered in the u.s patent office. 1895 coca cola is now drunk in every state in the us

4. Background Trade name of sweetened carbonated drink Originally made with cocoa leaves and flavored with cola nuts along with caramel and caffeine Started in 1886 grabbing the market of USA in 1895 and expanding up to 200 countries in 2000

5. Reasons for new coke introduction Loosing market share Brand image affected Beating the rival

6. Loosing market share The company had lost its market share though remaining competitive By 1970 the overall market share had dropped to 4.9% By 1984 the overall market share of the company dropped to 9.8%

7. Brand image affected The company was not only loosing share to the rival Pepsi but also to other brand created by itself. Example:-Diet Coke went on to become the most successful consumer product launch of the 1980s

8. Beating the Rival The market share kept declining to Pepsi though the excess vending machine kept the price competitive The market share of coke remained stagnant while the rival kept catching up The taste of Pepsi kept winning the new customers

9. The launch of new coke Coca-Cola launched New Coke in April 1985 with the punch line 'Catch the wave' change in Coke's formula was publicized through the television and newspapers

10. Effect of new coke Loss of existing customers More decline in the market share Rival emerged victorious Re launch of the classic coke

11. Loss of existing customers The existing customers did not like the new coke in term of its taste and switched to other brands. Many of the existing customers boycotted the new coke showing the sign of dislikeness.

12. More decline in the market share An unexpected twist happened in the existing market of coke within 79 days the market share dropped to such an extent that it was considered as one of the greatest American market failure

13. Rival emerged victorious Rather than beating the rival the strategy paved a way for the rival to get more customers.

15. REASON FOR RETURN OF CLASSIC COKE PUBLIC BIDDING EMOTION TO ORIGINAL COKE US HERITAGE DISPLAY ON THE CLASSIC COKE SUCCESS PEPSI GAINED GROUND ON COLA

16. US HERITAGE DISPLAY ON THE CLASSIC COKE SUCCESS Coke had spent more than a hundred years convincing the North American population that its product was an integral part of their lives, and their very identities. to do away with Coca-Cola was violating their identity and they weren't going to stand for it, and they therefore weren't shy about saying so.

17. PEPSI GAINED GROUND ON COLA By the end of 1985 Pepsi had more market shares than the combined market share of new coke and coke classic By end of 1987 from market cokes share of 3 percent it come down 0.1

18. Conclusion Coca Cola is one of the most recognized brands on the globe and the main factor behind their success is their Marketing Strategy. Mistakes:-can cause the shutdown of the company. Before making any changes to the company or introducing a new product, it is very important to find all relevant information related to it, and to accurately anticipate results. It is also Important to define the goal and reason for Market Research before conducting it and every detail must be considered while conducting it.

19. Conclusion Market Research can only guide in making decisions, but ultimately it is the decision of the top level in the organization. Not a Marketing Ploy, thus considered as marketing Blunder. Coca-Cola decided that the survey results were more reliable than the feedback they got from the focus groups.

20. Conclusion Not well planned. Coke lost a lot of sales to Pepsi, sales that Pepsi would have never gained if new coke was not unleashed. Discontinuing the production of the existing brand(old coke) knowing the product is new in the market.

21. Q & A

22. THANK YOU