When Gizueta decided to go ahead with the new formula and take the old
Coke off of the market, “The change was announced April 23, 1985 at the Vivian Beaumont Theater at the Lincoln Center. Some two hundred TV and newspaper reporters attended this very glitzy announcement. It included a question and answer session, a history of
Coca-Cola, and many other elements”. As much hype as there was around this interview
, it did not go very well
. In fact
, as stated by Oliver, “Reporters present had already been fed questions by Pepsi”. Pepsi was sure to be there to profit from this. The response was not what Gizueta had hoped for, yet exactly what Pepsi had always prayed for. It did not take long for word to get around; in fact, “market research showed that 80% of the American public was aware of the change within 48 hours”.
Coca Cola customers were furious and made their feelings known with letters and phone calls such as, “ To the Master Dodo this concerns: What ignoramus decided to change the formula of Coke?!?! The new formula is gross, disgusting, unexciting, and worse than Pepsi!!” And, “Real coke had a punch this tastes almost like its flat”. This is just a sample of the many responses
Coca Cola got in
. Hays states, “Company headquarters in Atlanta started receiving angry letters expressing deep disappointment and anger at executives. Over 400,000 calls and letters were received by the company”. It did not matter to customers that the new
Coke was proven to taste better. This was a matter of no longer having the choice to drink
Coca Cola’s number one
tradition. Coca Cola had thought the new formula would bring them out of a slump, yet instead it seemed to put them in
to a further slump. Not only was
Coca Cola still in a slump, but the new formula was threatening their place in the
cola wars with many
Coca Cola customers threatening to switch to Pepsi. In fact, Pepsi took this time to declare themselves the winner of the
cola wars with Enrico stating, “It gives me great pleasure to offer each of you my heartiest congratulations. After eighty-seven years of going at it eyeball to eyeball, the other guy just blinked.
Coca-Cola is withdrawing their product from the marketplace, and is reformulating brand Coke to be more like Pepsi...There is no question the long-term market success of Pepsi has forced this move...Maybe they finally realized what most of us have known for years, Pepsi tastes better than Coke. Well, people in trouble tend to do desperate things...and we'll have to keep our eye on them. But for now, I say, victory is sweet, and we have earned a celebration. We're going to declare a holiday on Friday. Enjoy! Best Regards.” With Pepsi having been right on
Coca Cola’s tail in the market world before this event, it only seemed as if it was a matter of time now before they would reign supreme.
Coca Cola had dug itself into a hole that was going to be difficult to get out of.
Coca Cola quickly realized it had made a mistake.
Coca Cola consumers drank
Coke for more than the taste, it was a matter of tradition, and they wanted their tradition back. New Coke was not going to be
Coca Cola’s new hit produc
t. In fact
, as stated by Haig, “As soon as the decision was announced, a large percentage of the US population immediately decided to boycott the new product”. This was not a business venture in which the positives outweighed the negatives. The only way Gizuetta and the rest of the
Coca Cola
executives could try and fix this mess was to bring their original product back and actually listen to their customers. So, on July 10, 1985
, Gizueta announced, “Today, we have two messages to deliver to the American consumer, first, to those of you who are drinking
Coca-Cola with its great new taste, our thanks...But there is a second group of consumers to whom we want to speak to today and our message to this group is simple: We have heard you".
Coca Cola listened to their customers and learned a lesson as Gizueta states, “It was then that we learned that if the shareholders think they own this company, they are kidding themselves. The reality is that the American consumer owns
Coca-Cola”.
Getting the original coca cola back was so important to Americans that [omit] As Pendergrast states, “So important was the development that ABC News's Peter Jennings interrupted regular programming to share it with viewers
". On the floor of the U.S. Senate, David Pryor called it
"a meaningful moment in U.S. history". It was clear that America was happy to have their traditional
Coke back, yet in the
meantime Pepsi had been working hard to make it known that they were the winners of the
colac wars.
Coca Cola executives had given Coke back to America, but would consumers go back to trusting
Coca Cola when it appeared that Pepsi had the better drink?
Consumers were more than happy to rush back to
Coca Cola. In fact sales were higher than ever as stated in the New York Times, “Six months after the rollout, Coke's sales had increased at more than twice the rate of Pepsi's”. Although it had appeared that
Coca Cola was going to lose the
Cola Wars for good, in the end they still wound up winners, as stated “Yes, it infuriated the public, cost a ton of money and lasted only 77 days before we reintroduced
Coca-Cola Classic. Still, New Coke was a success because it revitalized the brand and reattached the public to Coke”. It was almost as if
Coca Cola had planned the whole thing themselves. Customers were flattered that their voice had been heard and respected
Coca Cola for bringing the original back. New Coke may not have had much success in the consumer world but it was very helpful to the overall life of
Coca Cola as stated by Smith, “The
company had increased its volume of cola sales by twenty nine per cent since the creation of the new
Coke”. Clearly
Coca Cola was able to overcome what could have been a catastrophic blunder for the company.
Not many companies could come out of a crisis like
that in the summer of 1985 as winners, yet
Coca Cola does. What had started as a plan to get Coke out of a slump and had turned into a disaster still in the end accomplishes exactly what
Coke wanted.