Despite overwhelmingly positive feedback from focus groups and taste tests by nearly 200,000 people, the launch of the New Coke formula was an undeniable failure. Coke had been seeking a way to gain market share from its rival, Pepsi, but it ended up generating overwhelming customer backlash. Customers hated the New Coke simply because of what the original Coke meant to them, not because of the new drink's taste. Pepsi capitalized on Coke's failure by giving its employees the day off and declaring victory in full-page newspaper ads. This marketing blunder illustrates why brands should watch what their customers do – not what they say. Moreover, a passionate audience matters more than a great product.
Thursday, May 9, 2024