New Coke Product of Coca Cola

ForClass - New Coke

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Nikola Garic

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Lack of support from bottlers

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Instead of adding a different flavor to its existing product line, Coca-Cola completely rebranded its current product, in order to satisfy its bottlers who would be opposed to adding a new line. If Coca-Cola had support from its bottlers, it would perhaps not need to replace its current product with New Coke.

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Replacement of current product

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In part due to the agreement it had with its bottlers, Coca-Cola decided to replace its current product, and rebrand as New Coke, instead of launching a new flavor, that would coexist with the original product. As part of the rebranding strategy Coca-Cola altered the flavor, and the graphic design of the can, therefore completely replacing its original product. While initially this strategy brought in a lot of new sales, ultimately the core customer base objected to the changes and sales dropped.

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Solving one part of the problem

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Coca-Cola decided to launch its new product out of fear of losing share to Pepsi due to Pepsi's taste superiority. Although blind tests supported the superiority of New Coke over the original product, what the launch of the new formula failed to foresee is that consumers did not purchase the product on the basis of taste alone. As later complain calls would show, people valued Coke as an American symbol, and seeing the rebranded coke negatively impacted this reputation. Therefore, instead of only relying on taste preferences, Coke failed to take into account the value of its brand to consumers.