Text: In 1985, the highly successful iconic Coke soda was taken off the market and replaced with a new formula, called “New Coke”. At the time, Coke was losing market share in critical market segments and was coming under competitive pressure from its arch-rival, Pepsi. That time in history was noted as the Cola Wars, as Pepsi executed a new promotion called the Pepsi Challenge. Consumers were asked to vote for their favorite tasting Cola on a blind-labeled basis. Pepsi won handily. These taste tests were turned into television commercials. With Michael Jackson as their spokesperson, this was the nail in Coke’s coffin (so they thought). This prompted Coke to conduct market research studies. With similar results, they abruptly changed the formula. The new formula created an immediate backlash and consumers led a revolt and boycott. Within 6 months, Coke brought back the original formula. New Coke is heralded as one of the biggest marketing blunders in U.S. history. Question: How was the Coke brand positioned compared to the Pepsi brand? Use the following framework for your answers: Coke’s Positioning: Target Market & Consumers: Product Category & Market: Points of Differentiation & Emotional/Physical Benefits: Proof Points & Brand Attributes: Pepsi’s Positioning: Target Market & Consumers (Demographic or Psychographic): Product Category & Market Segment: Points of Differentiation & Emotional/Physical Benefits: Proof Points & Brand Attributes: Whole Foods Example: Target: The healthy and environmentally conscious consumer (Psychographic) Segment: Organic Food Market Benefits: Nourishes people and planet Proof Points: (1) Ranchers and Farmers meet 100+ animal welfare standards (2) Transparency and Fair Trade with supplier code of conduct (3) 365 brand has 3,000 products that are carefully sourced
Text:
In 1985, the highly successful iconic Coke soda was taken off the market and replaced with a new formula, called “New Coke”. At the time, Coke was losing market share in critical market segments and was coming under competitive pressure from its arch-rival, Pepsi.
That time in history was noted as the Cola Wars, as Pepsi executed a new promotion called the Pepsi Challenge. Consumers were asked to vote for their favorite tasting Cola on a blind-labeled basis. Pepsi won handily. These taste tests were turned into television commercials. With Michael Jackson as their spokesperson, this was the nail in Coke’s coffin (so they thought). This prompted Coke to conduct
Question:
How was the Coke brand positioned compared to the Pepsi brand? Use the following framework for your answers:
Coke’s Positioning:
Target Market & Consumers:
Product Category & Market:
Points of Differentiation & Emotional/Physical Benefits:
Proof Points & Brand Attributes:
Pepsi’s Positioning:
Target Market & Consumers (Demographic or Psychographic):
Product Category & Market Segment:
Points of Differentiation & Emotional/Physical Benefits:
Proof Points & Brand Attributes:
Whole Foods Example:
Target: The healthy and environmentally conscious consumer (Psychographic)
Segment: Organic Food Market
Benefits: Nourishes people and planet
Proof Points: (1) Ranchers and Farmers meet 100+ animal welfare standards (2) Transparency and Fair Trade with supplier code of conduct (3) 365 brand has 3,000 products that are carefully sourced
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