Introducing New Coke Harvard Case Solution & Analysis

Introducing New Coke

Question 01: What is the business of Coca-Cola?

Coca Cola is basically a part of beverage industry. It has been in this industry for more than a hundred years and it has been serving the needs of its loyal customers, who have been liking the beverage for such a long time. Coca Cola is an American corporation, which has been a major retailer, manufacturer and exporter of Coca Cola beverage company. The company is best known for the main flagship store that is Coca Cola.

The case states that Coca Cola is not only a beverage compnay but it is also a part of other industries too. It has been a part of politics and culture. As the case states, the company has diversifed itself into various other businesses including the Columbia Pictures in 1962. The reason to acquire this was to become a part of the related and unrelated diversification strategy. Along with this, Coca Cola has been a part of an industry, which has shown loyal customers due to the element of trust with on the products offered by the company in all parts of the world. In addition, Coca Cola has created a nostalgia and it has developed a redeem and a pride for customers in the United States market.

In spite of being the most renowed and recongized beverage industry giant, Coca Cola is still focusing on introdcuing new and innovative flavors and formulas that can further improve the quality and taste of individuals across the world. Regardless of being a part of various indsutries that are related and unrelated to its core business, the main business of the company is the beverage industry.


Question 02: What was the strategy of building the brand Coca-Cola? What is the origin of the meanings of brand Coca-Cola?

From the beginning, Coca Cola has been revolving with the idea and strategy to facilitate and accommodate all its customers. Coca Cola initially launched its brand strategy by first of all finding its target market, which was the people who were content and happy with non-alcoholic drinks and beverages. Secondly, the company had a strategy to focus on customers that have been loyal with the company and its brand for more than a hundred years. As the case states, when Coca Cola decided to change itself to New Coke, so the loyal customers were the ones who got really disappointed. Their view was that the real taste and name lies in the traditional taste of the cola.

Therefore, the strategy of Coca Cola relies on three A’s which were entirely committed to target customers. This included the availability, acceptability and the affability. Along with this, the company has been very committed at remaining a low cost product where it has been regularly offering discounts and promotional schemes to each and every individual customer. These promotional schemes get even better during Christmas and Easter occasions. The three P’s of Coca Cola include: penetration, preference and the product. These three P’s account for the focus and direction of the company. Along with this, since the reinvention of Coca Cola Classic, Coca Cola has been very determined to advertise itself with constant effective and efficient methods.

Under this method, Coca Cola has spent billions of dollars to advertise Coca Cola in an excellent manner. Being one of the oldest brands in the industry, Coca Cola has developed a strong brand loyalty with its customers.

Along with this, Coca Cola was able to enter various markets by introducing Diet Coke as an option for people or the market segment that was concerned with the health conscious factor of Coca Cola. Therefore, not only the company has a brand strategy to remain competitive in the traditional cola industry but has always expanded itself to further demographics and has introduced a wider range of products.

The history of the brand, Coca Cola is that it was introduced or launched way back in 1886 by Dr. John Smyth Pemberton, who was a pharmacist by profession. He invented a distinctive and a unique tasting soft drink, which was the first product or brand in the cola industry. Basically, he created a flavor and took it to a friend where he mixed it with carbonated water and sampled it to usage. The product eventually turned out to be a tasty drink and was liked by people around. The name Coca Cola was introduced by Frank M. Robinson, who also designed the logo and the trademark for the company, which is still being used by the company and it is an integral part for the stakeholders and the shareholders of Coca Cola brand.

During the early part, Coca Cola even diversified itself into unrelated products and tried a few different things before finally concentrating and deciding to focus on the same industry and bring in new products ...................

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April 23, 1985 Coca-Cola Co announced a decision that will rock the world. The old formula of Coca-Cola will be discontinued and replaced with a smooth, sweet taste. The reaction of the American people was immediate and violent, resulting in three months unrelenting protest against the loss of Coca-Cola. Was market research in wine? Launch strategy? Or Coke "just do not understand"? This is considered the most significant social marketing disaster to show the profound lessons about managing the brand. Includes color exhibits.
To enhance their effectiveness, color cases should be printed in color. "Hide
by Susan Fournier Source: Harvard Business School 36 pages. Publication Date: December 17, 1999. Prod. #: 500067-PDF-ENG

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