announced its decision to change the flavor of the company's flagship brand. The events that followed this decision, as well as the factors that led to it, have been examined, discussed and extensively analyzed in this report.2. Reformulation The Pepsi Challenge campaign had contributed to Coca-Cola's slow but steady decline in market share in the soft drinks category. This erosion has been most evident in sales at grocery stores, which reflect consumer preferences more directly than sales at vending machines or fountains. Coca-Cola management began researching the possibility of reformulating Coca-Cola to respond to the evident changes in consumer tastes. By 1984, researchers had arrived at a new formula for Coca-Cola. Before launching New Coke, Coca-Cola had invested $4,000,000 in market research and conducted 200,000 blind taste tests. (Anon, n.d.) In all of these blind (unbranded) taste tests, New Coke had outperformed both Pepsi and existing Coke. (Skapinker, 2001) These blind taste tests and focus groups were the basis of the launch of New Coke in 1985. (Cook, 2002) In addition to beating Pepsi, cola drinkers chose this new formula over the old Coke formula -Cola by 55% more 45% in blind taste tests and loyal Coca-Cola drinkers chose it over the old Coca-Cola formula, the 53% 47%.

Topic > announced its decision to change the flavor of the company's flagship brand. The events that followed this decision, as well as the factors that led to it, have been examined, discussed and extensively analyzed in this report.2. Reformulation The Pepsi Challenge campaign had contributed to Coca-Cola's slow but steady decline in market share in the soft drinks category. This erosion has been most evident in sales at grocery stores, which reflect consumer preferences more directly than sales at vending machines or fountains. Coca-Cola management began researching the possibility of reformulating Coca-Cola to respond to the evident changes in consumer tastes. By 1984, researchers had arrived at a new formula for Coca-Cola. Before launching New Coke, Coca-Cola had invested $4,000,000 in market research and conducted 200,000 blind taste tests. (Anon, n.d.) In all of these blind (unbranded) taste tests, New Coke had outperformed both Pepsi and existing Coke. (Skapinker, 2001) These blind taste tests and focus groups were the basis of the launch of New Coke in 1985. (Cook, 2002) In addition to beating Pepsi, cola drinkers chose this new formula over the old Coke formula -Cola by 55% more 45% in blind taste tests and loyal Coca-Cola drinkers chose it over the old Coca-Cola formula, the 53% 47%.