Case 1 coke

Date of Major Event: April 23, 1985, a pivotal day for marketers, marking a turning point in understanding consumer behavior.
Prior Assumption: Marketers believed consumers were logical and rational.
Emergence of Consumer Behavior Study: Significant shifts began in the late 1970s to early 1980s concerning consumer irrationality.
Key Takeaway: This case illustrated the importance of studying the irrationality of consumer behavior.

Foundations:
- Invented by John Pemberton, originally marketed as a medicinal tonic (non-carbonated).
- John Pemberton died broke and never profited from the drink despite creating the formula.
Asa Candler's Role:
- Candler purchased the formula and saw potential, especially with carbonation, transforming the beverage into a drink.
- He expanded distribution through bottling, which was key in making Coca-Cola widely available.
Ownership Transition: Candler eventually sold the company to Ernest Woodruff and his son Robert Woodruff, who greatly influenced its marketing success.

Symbolic Nature of Coca-Cola: More than just a drink; it symbolizes American values such as freedom, tradition, and simplicity.
Comparison to Other Symbols: Notable American brands include Budweiser (beer), baseball (sports), McDonald's (fast food), and others that represent historical and cultural aspects.
Emotional and Cultural Significance: Coca-Cola became synonymous with American heritage and identity, akin to the American flag.

Expansion Strategy: Woodruff ensured Coca-Cola was accessible in all circumstances, including selling to soldiers during WWII.
Child Targeting: Created branding around Santa Claus to appeal to children and link the holiday to Coca-Cola, embedding it in childhood nostalgia.
Nostalgia Through Art: Engaged Norman Rockwell to create illustrations that showcased Coca-Cola as part of the American lifestyle, enhancing nostalgic feelings connected to the brand.

Support for Troops: Coca-Cola provided drinks to soldiers for a low price, reinforcing emotional attachments and providing comfort during difficult times.
Emotional Responses: Soldiers expressed strong connections to Coca-Cola, viewing it as a comfort from home, even during wars.
Government Involvement: The U.S. government supported Coca-Cola's efforts during the war, leading to international expansion post-war.

Market Research and New Product Development:
- Coca-Cola embarked on a project called Project Kansas, focusing on creating a new formula, assuming the problem was taste.
- The result: New Coke launched, which was sweeter but received a negative consumer reaction.
Consumer Outrage: People reacted strongly, feeling as if they lost something valuable. This emotional response highlighted the deep-rooted attachment to the original Coca-Cola.
Psychological Response: Coca-Cola had to hire a psychologist to manage the influx of distress calls from upset consumers.

Pepsi's Rise: Developing a marketing strategy targeting younger consumers and promoting individuality as part of the Pepsi Generation.
Marketing Differentiation: Pepsi recognized that changing the tastes of established Coca-Cola drinkers was difficult; thus, they repositioned themselves to appeal to the younger, emerging generation.
Pepsi Challenge: Introduced as a blind taste test where many consumers preferred Pepsi over Coca-Cola, threatening Coca-Cola's market dominance.

Ad Strategies: In response to the Pepsi Challenge, Coca-Cola changed advertising to focus on the emotional connections and nostalgia tied to the brand, instead of direct taste comparisons.
Public Relations Approach: They attempted to revitalize the brand's image by showcasing their products as central to American life, reinforcing their positive emotional association with consumers.

The New Coke case serves as a cautionary tale about the misinterpretation of marketing research and consumer attachment, demonstrating the risks when brands deviate from their core identities. The resulting backlash underlined the significance of tradition and emotional connections over mere product characteristics in marketing.