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CS-116 Cola Wars 1985 New Coke v05

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[Case Studies] CS-116 Cola Wars 1985 New Coke
Case Study (CS-116) - Cola Wars 1985 New CokeExplores the cautionary tale against tampering with a well-established andsuccessful brand. This Market Simulation shows how the betrayal of Coke'sBrand value, followed by the re-invigoration of Coke's Brand value, can explainCoke's significant swings in Market Share during 1985. Competitive Story:By 1985 Pepsi had begun to outsell Coke in supermarkets. Coke maintained itssuperior Market Share through soda vending machines and fountain sales. But the1975 Pepsi Challenge had badly shaken Coke by proving that Customers werepreferring sweeter cola. New Coke did well in test studies, but the product'sintroduction was a catastrophic failure. Executives failed to appreciate the betrayalCustomers felt when 'the real thing' - constant and unchanging - was changed.The re-introduction of Coke Classic was also unexpected. With Customersvindicated and Coke's brand re-invigorated, Coke's Market Share soared! In 1985 the Price of a 2-Litrebottle of Pepsi was 89 cents.Coke was 'the real thing' whileCustomers saw Pepsi as beingcloser to Generic Cola. 'New Coke' tasted better. But themain effect was the backlashagainst the Brand. Coke was nolonger "the real thing" so BrandCustomer value dropped by 5%. Re-introducing 'Coke Classic'reinvigorated the Brand, droveCustomer nostalgia, andboosted Brand value by 5% (pastoriginal Brand value). Coke's Market Share hadremained flat while share for thebetter tasting (sweeter) Pepsicontinued to climb. Coke secretlystarted testing new formulations.Coke & PepsiProduct FeaturesCoke & PepsiFeature ListCoke & PepsiFeature WTP#1 BuildCoke & PepsiWTP MatrixMinimumColumns1985 MarketBefore New CokeReduce Value ofCoke Brand by 5%#2 BuildCoke & PepsiWTP MatrixMinimumColumns1985 MarketAfter New CokeIncrease Value ofCoke Brand by 5%1985 MarketAfter Bring BackCoke ClassicMinimumColumns#3 BuildCoke & PepsiWTP MatrixProduct WTP+ Feature WTPProduct WTP+ Feature WTP Table Creator Table Creator CustomerDistributions Product Generator Column Filter Simulate Market Scale Demographic Product Generator Column Filter Simulate Market Scale Demographic Simulate Market Column Filter Product Generator Column Appender Column Appender Case Study (CS-116) - Cola Wars 1985 New CokeExplores the cautionary tale against tampering with a well-established andsuccessful brand. This Market Simulation shows how the betrayal of Coke'sBrand value, followed by the re-invigoration of Coke's Brand value, can explainCoke's significant swings in Market Share during 1985. Competitive Story:By 1985 Pepsi had begun to outsell Coke in supermarkets. Coke maintained itssuperior Market Share through soda vending machines and fountain sales. But the1975 Pepsi Challenge had badly shaken Coke by proving that Customers werepreferring sweeter cola. New Coke did well in test studies, but the product'sintroduction was a catastrophic failure. Executives failed to appreciate the betrayalCustomers felt when 'the real thing' - constant and unchanging - was changed.The re-introduction of Coke Classic was also unexpected. With Customersvindicated and Coke's brand re-invigorated, Coke's Market Share soared! In 1985 the Price of a 2-Litrebottle of Pepsi was 89 cents.Coke was 'the real thing' whileCustomers saw Pepsi as beingcloser to Generic Cola. 'New Coke' tasted better. But themain effect was the backlashagainst the Brand. Coke was nolonger "the real thing" so BrandCustomer value dropped by 5%. Re-introducing 'Coke Classic'reinvigorated the Brand, droveCustomer nostalgia, andboosted Brand value by 5% (pastoriginal Brand value). Coke's Market Share hadremained flat while share for thebetter tasting (sweeter) Pepsicontinued to climb. Coke secretlystarted testing new formulations.Coke & PepsiProduct FeaturesCoke & PepsiFeature ListCoke & PepsiFeature WTP#1 BuildCoke & PepsiWTP MatrixMinimumColumns1985 MarketBefore New CokeReduce Value ofCoke Brand by 5%#2 BuildCoke & PepsiWTP MatrixMinimumColumns1985 MarketAfter New CokeIncrease Value ofCoke Brand by 5%1985 MarketAfter Bring BackCoke ClassicMinimumColumns#3 BuildCoke & PepsiWTP MatrixProduct WTP+ Feature WTPProduct WTP+ Feature WTPTable Creator Table Creator CustomerDistributions Product Generator Column Filter Simulate Market Scale Demographic Product Generator Column Filter Simulate Market Scale Demographic Simulate Market Column Filter Product Generator Column Appender Column Appender

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