New Coke - A Lesson in Brand Loyalty

In April 1985, the management of The Coca-Cola Company announced its decision to change the flavor of the company's flagship brand. This decision was made based on the fact that Pepsi consumer research discovered in blind taste tests that a majority of consumers preferred the taste of Pepsi to that of Coke. The "Pepsi Challenge" campaign made this public knowledge and Coke executives quickly moved to change America's top brand. New Coke came in a new can, with updated red and silver graphics replacing the traditional red and white look. Although taste tests of the New Coke had shown that majority of those tested preferred the new product, these tests could not gauge the emotional appeal of the "old" Coke. In other words, consumers want their cake and eat it too. When the taste change was announced, some consumers panicked, filling their basements with cases of Coke. 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."

A large public outcry ensued during the 79 days when old Coke was no longer on the shelves. Coca-Cola quickly reintroduced the "old" Coke when they realized market share was falling and christened it Classic Coke. Volume for the classic brand has risen 24 percent since 1984, making it the No. 1 soft drink in since 1987. Consumers became even more loyal to the brand after it was temporarily taken away from them.