This Day in History – Coca Cola
This Day in History – If It Ain’t Broke, Don’t Fix It.
Today, in 1985 was one of those days that gives nightmares to marketing executives
Today, in 1985 was one of those days that gives nightmares to marketing executives everywhere. Because on this day, the best of the best stunned the world with a decision to take a product line and make it “new & improved”. Seems like the kind of thing that happens all over, every day in corporate America. As history shows, it was one of the biggest risks in marketing history and it ignited a consumer firestorm the likes of which is rarely seen, especially for what is commonly regarded as a fairly ordinary product.
But, as it turns out, this was no ordinary product. It was the product that an old country doctor had one evening, drove into town, hitched his horse, and quietly slipped into a drugstore by the back door, and began to dicker with one Asa Griggs Candler, the young drug clerk. It was that fateful night in 1887 that Asa bought the rights for the formula for Coca-Cola from its inventor John Pemberton and several other shareholders for $2,300. The formula had been around for some 99 years, and during that time had grown to be one of the most recognized and loved brands on the planet.
Coca-Cola Company introduced reformulated Coca-Cola?, often referred to as “new Coke?”, with expensive and gaudy promotion. The company’s well intentioned effort to re-energize its Coca-Cola brand and the cola category in its largest market, the United States set off a 79 day consumer revolt that revolutionized the soft-drink industry, transformed The Coca-Cola Company and stands today as testimony to the power of taking intelligent risks, even when they don’t quite work as intended.
Here’s a great commercial comparing the Cokes -
http://youtu.be/ky45YGUA3co
This Day in History – Unintended Consequences
Turns out, everyday America liked the old brand. Something strange began to happen. Folks began hoarding “Old Coke”. Supermarkets were threatened by consumers with boycotts if they dared to run out of the real thing. Letter writing campaigns began. Some called for a congressional investigation. Calls flooded in not just to the 800-GET-COKE phone line, but to Coca-Cola offices across the United States. By June 1985, The Coca-Cola Company was getting 1,500 calls a day on its consumer hot line, compared with 400 a day before the taste change. People seemed to hold any Coca-Cola employee – from security officers at our headquarters building to their neighbors who worked for Coke – personally responsible for the change. The company’s CEO, Mr. Goizueta received a letter addressed to “Chief Dodo, The Coca-Cola Company.” He often said he was more upset that it was actually delivered to him! Another person wrote to him asking for his autograph – because, in years to come, the signature of “one of the dumbest executives in American business history” would be worth a fortune. A man in San Antonio, Texas, drove to a local bottler and bought $1,000 worth of Coca-Cola. Some people got depressed over the loss of their favorite soft drink. Suddenly everyone was talking about Coca-Cola, realizing what an important role it played in his or her life.
Protest groups – such as the Society for the Preservation of the Real Thing and Old Cola Drinkers of America (which claimed to have recruited 100,000 in a drive to bring back “old” Coke) – popped up around the country. Songs were written to honor the old taste. Protesters at a Coca-Cola event in downtown Atlanta in May carried signs with “We want the real thing” and “Our children will never know refreshment.”
This Day in History – Alternate Plan B
The backlash was so great that the company relented. They re-introduced the old product as “Classic Coke” and sales actually increased. Cynics, assuming bright
people are always bright, began to claim that the whole thing was a clever ploy to sell more Coke. History shows the announcement of the return of “old” Coca-Cola was made in July 1985, and those hoarding as many as 900 bottles in their basements could stop their self-imposed rationing and begin to drink the product as they always had – as often as they’d like.
So on that famous July day in history, the story that the “old” Coca-Cola was returning to store shelves led two network newscasts and made the front page of virtually every major newspaper. Consumers applauded the decision. In just two days after the announcement of Coca-Cola classic, The Coca-Cola Company received 31,600 telephone calls on the hot line. Coca-Cola was obviously more than just a soft drink.
To mark the event, commingle with the brightest and the best at the MBA lounge. But, on this day in history, before you order anything check the fire exits. Then kick back and order an Edsel on the rocks. Don’t try to gulp down the olive- – there’s a pit in it. And remember, there’s a huge difference between strategy and tactics. When your tactics produce less than desirable results, history shows you better have a Plan B.
Here’s mine. It is producing a firestorm in the Internet Marketing world the likes of which history has never been seen. Career Plan B
Have a perfect day.
To learn more about how to empower yourself with daily icebreakers about this day in history, visit my website at http://www.empowernetwork.com/petrierw/
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