According to an article from The Globe and Mail: “From healthy fries to Segways: Why most products fail” around seventy percent of new products are not successful and not having a good marketing strategy might be one of the reasons.
The objective of a marketing strategy is not only to increase sales but to differentiate the brand from competitors. In order to do it, an analysis of the internal and external factors should be done. However, some companies do not do it carefully and fail. An example given in the article is the New Coke.
By 1985, Coca Cola Company already had its position but Pepsi was becoming first in the consumer’s mind. To avoid this the company took a risky decision, they reformulated their recipe and named it the New Coke.
The decision made some people began to panic, the company did not think about the strong bond that some customers had with the brand. In the article “The real history of New Coke” says that “A man in San Antonio, Texas, drove to a local bottler and bought $1,000 worth of Coca-Cola”. The consumers wanted the “old coke” so Coca Cola Company brought the Coca Cola “Classic” back to shelves.
Even if the New Coke was not successful it helped the company realize that Coca Cola had a very strong position in the consumer’s mind when their customers began to protest the CEO’s decision. The change of the 99 years old formula also proves that as stated by Al Ries and Trout it is very difficult to change the customer’s impression once it is formed and that it is better to introduce more brands rather than replace an existing one.
References
[Photograph]. (2013). Retrieved from http://www.retronaut.com/wp-content/uploads/2013/03/221.jpg
Conversations Staff. (2012, November 14). The Real Story of New Coke: The Coca-Cola Company. Retrieved September 28, 2014, from http://www.coca-colacompany.com/history/the-real-story-of-new-coke
Quick MBA. (n.d.). Product Positioning. Retrieved September 28, 2014, from http://www.quickmba.com/marketing/ries-trout/positioning/
THE GLOBE AND MAIL. (2014, September 18). From healthy fries to segways: Why most products fail – The Globe and Mail. Retrieved September 28, 2014, from http://www.theglobeandmail.com/report-on-business/industry-news/marketing/burger-kings-failed-healthy-fries-campaign-not-unexpected/article20680200/