商务英语期末论文

1. Case study

New Coke for Old

By 1979 Coca-Cola’s lead in the US soft drink market was down to 4% although it was spending $100m more on advertising than its great rival Pepsi. So, after 99 successful years Coca-Cola decided to change its original formula and launch New Coke. Coke spent two years and $4m on new flavor research. By 1984 their market lead was down to 2% but in blind taste tests people seemed to prefer New Coke to Pepsi and in the biggest test 61% preferred it to original Coke.

Within 24 hours of its launch on 23 April 1985, 81% of the US population knew of the change to New Coke. However, once it was realized that New Coke was to replace rather than to be available as well as original Coke, the complaints started. By the middle of June where were 8000 a day. Coke also received 40,000 letters. On 11 July Coke executives apologized, admitted their mistake and re-introduced original Coke as Coca-Cola Classic.

The failure of New Coke had cost more than $4m. Sales of New Coke continued to fall while sales of Classic rose. Loyalty to the original was stronger than ever and Coca-Cola regained its place as the nation’s favorite soft drink.

After reading this article, please answer the following:

1) What is the reason for the failure to launch the New Coke? And why?

(150-300words, 20marks)

Reasons:

①The failure of marketing research.Ignore the investigation and analysis for Coca-Cola public perception of consumers.

②The failure of advertising strategy.It makes regular clients unhappy that they put the audience positioning in adolescents, and hired some youth idol TV to "keep up with the trend".

③The failure of the product positioning.In the face of the challenge of the Pepsi,didn't insist on its own positioning but easy to changed the formula.It makes the customers familiaring with Coca-Cola suddenly have a kind of strangeness about it.It caused a part of consumers to try the Pepsi.

④Denying their own brand core.At that time, Coca-Cola in the United States is the representative of an American culture and a kind of happiness.New coke launched means giving up its own brand and the brand superiority.

⑤Old Coca-Cola had been deeply rooted in the hearts of the people.When new Coca-Cola listed, the old Coca-Cola under the aircraft on the instant, did not give consumers a buffer.

2) What would you have done in the situations described in the article? What

lessons can be learned? (300-500words, 25marks)

If I were in the situations described in the article,I would like to do so:

①Do a marketing research.With the investigation showed that taste factors whether is an important reason for Coca-Cola's declining market share. At the same time,consult the customers' opinion of the New Coca-Cola and figure out whether consumers prefer old Coca-Cola.

②Resume production of the old Coca-Cola. At that time, Coca-Cola in the United States is the representative of an American culture and a kind of happiness.We should put the happiness back to the people of the United States, even the people of the world.

③Apologize to the public who like old Coca-Cola.Held a news conference, announced the resumption of the old Coca-Cola production.

④Increased advertising.Let the people from all over the world know that we corrected the mistake, we restored the old Coca-Cola production.

⑤Believe in our own products.Make staffs feel that our product belong to all over the world ,they are working for the best companies on earth.

⑥Sell old Coca-Cola in everywhere. Make our products reach, making it is everywhere, to make it in a dance hall, barber shops, offices, train fine place may at any time .

⑦Sell old Coca-Cola intelligently. It sounds simple, but how, when, and where to sell and promote products is the key of success or failure.People often use thermometer, calendar, notepad, baseball CARDS. Affix the logo of Coca-Cola to the top of these things.If this is the case,people of all over the world can see the logo of Coca-Cola at any time.In this way, Coca-Cola can leave a deep impression to people.

From the failure to launch the New Coke, I learned:

①Doing anything is a risk.

②Everybody is likely to make mistakes.