In the world of business and marketing, not all plans and strategies are considered successful. On the contrary, there are many plans that have failed miserably, leaving behind valuable lessons that other companies can learn from. One of the most prominent cases is the failed marketing plan of “New Coke” by Coca-Cola in the 1980s.

Historical Background:

In the early 1980s, Coca-Cola faced fierce competition from Pepsi, which was rapidly growing and gaining significant success. Taste tests showed that consumers preferred the taste of Pepsi over traditional Coca-Cola. In response to this challenge, Coca-Cola decided to make a bold change to its secret formula.

Marketing Plan: Launching “New Coke”

Reasons for Change:

Declining Market Share: With Pepsi’s increasing popularity, Coca-Cola’s market share began to decline.
Taste Tests: Taste tests showed that consumers preferred the sweeter taste of Pepsi, prompting Coca-Cola to attempt to introduce a similar-tasting product.

Execution of the Plan:

Announcement of the New Product: On April 23, 1985, Coca-Cola announced the launch of “New Coke” and discontinued the old formula.
Massive Marketing Campaign: The launch was accompanied by a huge marketing campaign, including TV, radio, and print ads, all promoting “New Coke” as a superior version of Coca-Cola.

Initial Reactions:

Consumer Shock:

Negative Reactions: Despite positive taste tests, consumers’ reactions were overwhelmingly negative. Many expressed displeasure with the change from the traditional taste.
Customer Protests: Messages of protest began reaching Coca-Cola, and campaigns to revert to the original formula gained momentum.

Media and Public Response

Media Coverage: The issue received extensive media coverage, highlighting the failure of the plan.
Impact of Opposition Campaigns: “Coca-Cola Classic” campaigns began gaining momentum, as consumers demanded the return of the original product.

Mistakes and Lessons Learned

Coca-Cola’s Mistakes:

Ignoring Emotional Attachments: Coca-Cola failed to consider the strong emotional connection consumers had with the original formula.
Inadequate Market Testing: Despite successful taste tests, the company did not conduct sufficient tests to understand the impact of the change on existing customers.
Ineffective Communication: The campaign lacked effective communication with the audience, leading to misunderstandings and negative reactions.

Lessons Learned:

Importance of Customer Engagement: Companies must listen to and understand their customers’ feelings and needs before making radical changes.
Comprehensive Testing: It’s essential to conduct comprehensive tests that take into account emotional and market aspects.
Change Management: Having a strong and effective communication plan to manage change and mitigate potential risks is crucial.

Return to the Original Formula

Quick Response:

On July 11, 1985, just 79 days after the launch of “New Coke,” Coca-Cola announced the return of the original formula under the name “Coca-Cola Classic.” This decision acknowledged the failure of the plan and responded to consumer demands.

Positive Results:

Regaining Trust: The return of Coca-Cola Classic helped regain customer trust and increase their loyalty.
Higher Sales Achieved: Unexpectedly, the crisis led to increased Coca-Cola sales, as customers began to appreciate the original taste even more.

The story of “New Coke” serves as a vivid example of how marketing plans can fail spectacularly if not managed correctly. Coca-Cola learned an important lesson about the importance of engaging with customers and understanding their emotions. Although “New Coke” was a colossal failure, it ultimately helped the company strengthen its position in the market through a quick response and the relaunch of the original formula. This story remains a valuable lesson for marketers worldwide about the potential risks of radical changes without sufficient study and comprehensive analysis.