Did you know that allegedly the Coca Cola recipe contained small traces of cocaine until 1929? (possibly why the name)

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In the early 1980s, Coca-Cola was losing market share to its arch-rival Pepsi, partly due to the latter's successful "Pepsi Challenge" taste tests. Their rivalry was famously called the “Cola Wars” in the advertising Industry.
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​These taste tests by Pepsi, are still called one of the most genius strokes of marketing, business historians claim that part of the problem with the success of the Pepsi Challenge was that Coke had fallen into a malaise as a brand,” he says. “People were in love with the notion of Coca-Cola, but they weren’t necessarily drinking Coca-Cola.”​
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In response, Coca-Cola developed a new formula that performed better than both Pepsi and the original Coke in over 200,000 blind taste tests.
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Did you know that it was almost the first time in a century that Coca Cola attempted a change in recipe?

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Launched with great fanfare in April 1985, New Coke was sweeter than the original, supposedly catering to the consumer preference for a smoother, more sugary taste profile that had boosted Pepsi’s popularity.

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But then came the Rude Awakening for Coke :

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Loyal consumers felt ignored, perceiving the change as a loss of their cherished drink.
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The backlash was very severe, dominating media headlines and public discourse.
The decision did not have the desired effect on sales either, Instead, the company faced a significant negative pushback that threatened its brand identity and loyalty base.

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Did you know that the company received 40,000 hate letters when they launched the New Coke Cola Flavour?

Shortest Beverage Launch in the history : Just 79 Days:
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Just 79 days after the launch of New Coke, the company reintroduced the original formula as "Coca-Cola Classic." This move addressed the uproar but left an unrepairable mark on the company’s history.
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Coca-Cola underestimated the deep emotional and cultural attachment consumers had with the original Coke. It wasn’t just a beverage; it was an American icon.

• Ignoring Consumer Connection: Consumers didn’t just see Coca-Cola as a beverage; for many, it was a nostalgic part of their lives.
  Removing it felt like losing a piece of personal and national identity. This emotional backlash was something Coca-Cola had not anticipated.
• Underestimating Brand Loyalty: Coca-Cola had misjudged the depth of its brand’s cultural integration.
  The intense loyalty was demonstrated when the reintroduction of the original formula as “Coca-Cola Classic” led to a significant increase in sales, turning potential disaster into a rebound in market share.
• Rapid Response to Crisis: Coca-Cola’s response to reintroduce the original formula as Coca-Cola Classic just 79 days after New Coke’s launch was a critical move that mitigated worse outcomes.

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5 Takeaways from this $30 Million Debacle

1. Deep Consumer Insight Beyond Data: Blind data points, such as taste tests, should not overshadow deeper consumer insights.
   ​For instance, Apple Inc. maintains a strong brand loyalty partially due to its emphasis on design and user experience, elements deeply valued by its customer base.
2. Innovate Without Alienating: Innovations should build on existing products, not replace them. For instance, when Pepsi has launched products like Pepsi Max alongside their traditional lineup to cater to different tastes without replacing beloved formulas.
3. Agility in Business Decisions: The ability to make quick decisions in the face of feedback is crucial.
   ​For Instance, Coca-Cola’s decision to revert to Coca-Cola Classic prevented a complete brand disaster.
4. Transparent Communication: Honest and open communication with consumers when rolling out new products or making significant changes is vital.
   ​For instance, when Johnson & Johnson faced the Tylenol crisis in the 1980s, their immediate and transparent response helped rebuild consumer trust.
5. Balancing Innovation with Tradition: Companies must balance the need for innovation with the preservation of what their customers love about their brand.