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What Were Some of The Limitations of The Research Process That Compromised The Validity and The Reliability of Coke's Research Process? | PDF | Coca Cola | Pepsi
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What Were Some of The Limitations of The Research Process That Compromised The Validity and The Reliability of Coke's Research Process?

Coca-Cola's market research into declining market share had several limitations: 1) It failed to ask the right questions about why loyal customers were leaving, and did not adequately gauge how much "perceived taste difference" contributed versus other factors like lack of innovation. 2) It did not properly capture how much discontent longtime Coke loyalists would feel if the original formula was discontinued. 3) It may have overemphasized taste difference compared to Pepsi and underestimated factors like brand fatigue, perceptions of Pepsi as hipper, and violating loyal customer sentiments built over decades. 4) While focus groups showed both favorable and unfavorable views of New Coke, the concerns of loyal

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371 views2 pages

What Were Some of The Limitations of The Research Process That Compromised The Validity and The Reliability of Coke's Research Process?

Coca-Cola's market research into declining market share had several limitations: 1) It failed to ask the right questions about why loyal customers were leaving, and did not adequately gauge how much "perceived taste difference" contributed versus other factors like lack of innovation. 2) It did not properly capture how much discontent longtime Coke loyalists would feel if the original formula was discontinued. 3) It may have overemphasized taste difference compared to Pepsi and underestimated factors like brand fatigue, perceptions of Pepsi as hipper, and violating loyal customer sentiments built over decades. 4) While focus groups showed both favorable and unfavorable views of New Coke, the concerns of loyal

Uploaded by

Mukesh Kumar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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What were some of the limitations of the research process that compromised the

validity and the reliability of Cokes research process?


One major limitation of the market research because of which they suffered was their failure
to ask the right questions around the loss of market share of Old Coke. The tests ran by coke
management reiterated the superiority of Pepsis taste over Coke. However, their market
research did not focus on how much does the perceived difference in taste count towards
the loss in market share and failure of coke to attract new customers.
Another major limitation of the market research process was its failure to accurately capture
the extent of discontent which coke loyalists would show in case of old coke being
discontinued. Ideally in the research process itself, they should have checked with the
consumers about their response in case the old coke is completely replaced with the new one
in the market.
It could had been possible that the lack of new innovation in marketing, product fatigue and
the perceived notion of being associated with the hip & happening brand Pepsi actually
contributed more towards these market dynamics than the actual taste difference conveyed by
Pepsi advertising.
As mentioned in the case study : "while the interviews showed a willingness to try the new
coke, the research on focus groups revealed both strong favourable and unfavourable
sentiments, the latter especially centered in the loyal drinker audience", Coca-Cola failed to
take into account the hazards of violating the loyal sentiments that it had created over the last
ten decades and the impact they can create on the current brand image of coca-cola. Also as
mentioned in the case-study, The vocal minority was discounted for the social effects
common in focus group settings and the technical division proceeded in trying to develop a
better, more pleasing flavour for coke suggest that the company was sure about the taste
being the only reason for loss of market share.
While the reason for conducting the research was to increase their market share against pepsi,
they failed to take into account that 45% of the respondents of the blind test did not favour
the new taste of Coca-Cola. All they did was taking into account the lead that the new flavour
had over pepsi. Hence the people who were against the introduction of new-taste-only coke,
retaliated and that cannibalised the reputation of new coke as well as the old coke thus
bringing down the market share of coke from 21.7% in 1984 to 20.2% in 1985.

References:
1. Introducing New Coke : Case Study by Harvard Business School

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