...MGT 4630 Developing New Product and Services Coke Zero study by Antonio Cardoso M9820394 The aim of this report is to critically evaluate a new product that has been launched in the last 10years. The report will assess the performance of the new product, the strategy and process used by the company in developing and launching the product and to see if it was successful or not. What is a new product and what is a new product development process According to Crawford and Di Benedetto (2011) a new product is one that is either new to an organisation or a market and that it can be broken down into the following categories They go on to suggest that a new product goes through the following stages 1. Opportunity Identification and selection 2. Concept Generation 3. Concept/Project Evaluation 4. Development 5. Launch New Products Management Tenth Edition Crawford and Di Benedetto (p30, 2011) It is worth noting that the text goes on to say about the above processes that “the activities are not sequential but overlapping and it is not implied that one phase must be completed before work can begin on the next one” . I’m expecting my analysis of a real world product will not only show that the process overlaps but that it is more flexible/agile. I think that two phases can be completed at the same time, or that in some circumstances or possibly for certain products that the new products team might go from phase 1 to 2 to 4 and then possibly back to 2 before returning...
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...company would be able to understand their customers and how to oppose competitors and external pressure. It is important to understand the right way to conduct research (KnowThis,2013). Coca-Cola is the world most recognized brand. There are intense competition between Coca-Cola and Pepsi. Coke has always been ahead until Pepsi repositioned itself as youth brand and successfully catch-up to Coke. In 1970, Pepsi introducing Pepsi Challenge, where they blind testing customer to see if they preferred Pepsi or Coke taste. Surprisingly, customer preferred Pepsi formula rather than Coke. Coke then started working on new formula and conducted 200,000 blind taste test to see how it fared. The result is people preferred the “new coke” rather than the original taste. Based on this research, Coke decided to throw away the original coke and introduced the new coke on its place. The new coke was launched to the market but people started to boycott the product. Sales of the new coke were low and people are angry because the original coke is not available anymore. Coke then had no choice to bring the original coke back. Coke’s marketing research fail to recognize the emotional attachment to the original coke because the test that had been carried only assesses taste preference. This story shows us the importance of selecting the best data collection method best...
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...Case: The Classic Cast of Coke Classic: Fizzled Decision Making Using the analytical model of decision making I think the process unfolded to decide to change Coca-Cola’s formula by first maybe thinking about a way to perhaps make more money in the future. So they might of diagnosed the problem by comparing their current performance to future expected performance as determined by plans and forecasts. So that was the first step. Second, they generated alternative solutions to the problem. They maybe came up with several alternatives. Third they evaluated the alternatives. It seems like Coca-Cola’s CEO, Roberto Goizueta, thought that changing Coca-Cola’s formula to a “sweeter, new Coke” could possibly be more popular than the original perhaps. Fourth, it seems like that’s the choice that they made, to replace the original Coca-Cola with a “sweeter, new Coke”. Fifth they implemented the decision by conducting market research, taste tests, and polls for over four years. Sixth they evaluated the decision, but obviously the conclusion was a negative one, because there were tons of complaints and protest groups formed, which further resulted in a class action lawsuit that planned to bring back the beloved original formula, Coca-Cola. Coca-Cola spent some four million dollars on market research for over four and a half years to reduce the uncertainty that surrounded its decision to change the formula. The decision could not be made readily, obviously. So with that being...
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...HTML Full Text HOW COKE IS KICKING PEPSI'S CAN Contents 1. THE NIGHT PROWLER AND THE SWAN 2. WHERE'S OSWALDO? 3. HOSING THE SODA JERKS 4. THE REAL SECRET FORMULA 5. THE PEPSI CHALLENGE 6. IS BIGGER BETTER? Listen Pause Loading | Download MP3 Help | | | It's the bloodiest clash yet of the cola titans. Coke, with its relentless focus--and a surprise attack--has stolen enough Of pepsi's market share to ask, is the war finally over? Inside the chairman's office on the 25th floor of Coca-Cola's stately headquarters in Atlanta, in the top left-hand drawer of his desk, Roberto Goizueta has for many years kept two charts. One describes Coca-Cola's fundamental business: selling the concentrate that transforms fizzy water into Coke. The diagram plots the four reasons Goizueta adores the business: (1) Selling concentrate requires little capital; (2) it produces superb returns; (3) it demands minimal reinvestment; (4) it spills an ocean of cash. One day recently, Coca-Cola's cerebral chairman and CEO was asked to pull out the second chart. This one illustrates PepsiCo's altogether different strategy, which has involved pouring billions of dollars into capital-intensive businesses like restaurants. Goizueta slides open the drawer and riffles through the papers. "I threw it out," he says nonchalantly. Raising his eyebrows, he dismisses the world's most famous No. 2 with trademark dispassion. "As they've become less relevant," Goizueta says, "I don't...
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...reins at Coca-Cola in 1997. Ivester was heralded for his ability to handle the financial flows and details of the soft drink giant. Former CEO Robert Goizueta had carefully groomed Ivester for the top position that he assumed in October 1997 after Goizueta’s untimely death. However, Ivester seemed to lack leadership in handling a series of ethical crises, causing some to doubt the “Big Red’s” reputation and its prospects for the future. For a company with a rich history of marketing prowess and financial performance, Ivester’s departure in 1999 represented a high-profile glitch on a relatively clean record in one hundred years of business. In 2000 Doug Daft, the company’s former president and chief operating officer, replaced Ivester as the new CEO. Daft’s tenure was rocky, and the company was allegedly involved in racial disrupting long-term contractual arrangements with distributors. By 2004 Daft was out and Neville Isdell had become president and worked to improve Coca-Cola’s...
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...Suhaib Riaz wrote this case under the supervision of Professor W. Glenn Rowe solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2008, Ivey Management Services Version: (A) 2008-10-16 In recent years, The Coca-Cola Company (Coca-Cola) has seen a much lower rise in its stock price compared with the exceptional 5,800 per cent rise during the 16-year tenure of its well-known chief executive officer (CEO), Robert Goizueta. After Goizueta’s untimely death from cancer in October 1997, the company witnessed some tumultuous times, and Goizueta’s three immediate successors have not lasted for even half as long as his total tenure (see Exhibit 1). Coca-Cola’s CEO succession process was widely regarded as being ad hoc, and each succession story had its own...
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...Lauren Wang MKTG 211 002 Response 6 My biggest takeaway from this lecture was that given the number of times we use heuristics to make both everyday and large decisions, and how many errors we make when using heuristics, us as consumers must make many mistakes when using peripheral routes of processing. For example, using frequency heuristics is often inaccurate and highly subjective based on the person and the information available to them. This is definitely apparent to me when making minor decisions such as where to eat for dinner. When thinking about risk, incidences that are more interesting or shocking to consumers are a lot more known and have a lot more prevalence in media, creating the availability bias that these incidences occur more than they do. This could be hazardous for risks that are less “sexy” and that people do not think a lot about. For example, in the example of estimates of deaths from accident vs. diabetes, the actual result where diabetes is four times more likely to occur than an accident is frightening. Consumers should be more cautious of preventing diabetes. Without this awareness due to selective media coverage, consumers are focusing on the wrong things that could be detrimental to their health or wellbeing. I have learnt about the law of large numbers from my statistics classes, but learning about the law of small numbers showed me how people tend to exaggerate the degree to which a small sample will resemble...
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...Reflections on The Real Story of New Coke On the April, 23, 1985, Coca-Cola Company began to introduce the reformulated Coca-Cola called New Coke into its largest market, the United States, to replace the original formula, which was regarded as a legend in marketing history. The reformulated coke promptly leaded to the country-wide storm of protests by the consumers who resisted the New Coke and called for the return of the original formula. Also, it drove people into a panic over losing their favorite soft drink. Customer Services in Coca-Cola Company and even its office were bombarded by the calls from thousands of fans of coke classic across the America. Even though this chaos ended with the return of coke classic, Coca-Cola Company, again, became the focus of the whole country and re-energized this fabled brand by helping its consumers realize that Coca-Cola was far more than a soft drink. Obviously, Coca-Cola intended to regain the lion’s share in its flagship market by taking this intelligent risk and it succeeded. The story of New Coke did not happen occasionally. At that time, the company was gradually losing its share in its largest market with its most popular product because of its chief competitor’s better performance. Coca-Cola had no choice but to change otherwise it would lose more. However, every change was along with unknown risks and conflicts and the company had to take the risk and face the conflicts. As a legendary company, Coca-Cola Company is never...
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...Reader. • Apply the information by performing the Activities • Test yourself by doing the Practice Exercises and checking your answers. Resources There is no textbook for this course. All the information you require is in this Study Guide. In addition, your Student Manual lists some books that you may wish to read to expand your knowledge. Learning outcomes When you have completed this unit you will be able to: • • Explain some of the considerations in equipment selection. • Discuss the needs for storage areas. • Discuss safety and emergency response considerations. • 1−2 Describe the role and functions of marine terminals. List the broad categories of studies that are needed in planning a new terminal. Module B: Certificate in Maritime Logistics (Course ML-302.5) Diploma in Shipping Logistics—Jamaica Maritime Institute Unit 1: Marine terminals Marine Terminal Operations Lesson 1...... Introduction to marine terminals Roles The possible roles of a marine terminal are to: • service a country • service an urban area • service a hinterland • service a specific industrial process • be part of a...
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...Study: Coke Zero When a couple of marketing managers for Coca-Cola told lawyer Elizabeth Finn Johnson that they wanted to sue their Coke Zero colleagues for “taste infringement,” she was baffled. She tried to talk them out of it, but they were determined. They argued that Coca-Cola Classic should be protected from the age discrimination it would suffer with the introduction of a newer, younger soft drink that tasted exactly the same as the original. Frustrated, Finn Johnson held up the Coke can and shouted, “It's not a person! Title VII doesn't cover these things!” What she didn't know was that the marketing managers were actors. Hidden cameras had been planted around the meeting room to capture the reactions of several unsuspecting lawyers who had been asked to consider the case, including an immigration lawyer who was asked if he could get the Coke Zero marketing head deported back to Canada. Coke Zero Immigration Lawyer Ad - YouTube The short videos were strategically placed on websites such as to promote Coke Zero as the hip, new alternative to Diet Coke for men. The Coca-Cola Company knows it has to be creative if it's going to sell more pop after sales dropped two years in a row in 2005 and 2006. Morgan Stanley analyst Bill Pecoriello explains, “Consumers are becoming ever more health-conscious, and the image of regular carbonated soft drinks is deteriorating rapidly.” In an attempt to appeal to consumers concerned with nutrition, Coke introduced Diet Coke Plus...
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...Case Study 1: Coke Zero: Do Real Men Drink Diet Coke? 1.Describe the specific type of consumer that the Coca-Cola Company is targeting with each of the following products: Diet Coke, Coke Zero, Diet Coke Plus, Coca-Cola Blak, and Full Throttle Blue Demon. What types of demographic segmentation is each product’s marketing most likely to include? Diet Coke mainly target women who want to lose weight and this is under Gender Segmentation. Coke Zero is designed for younger men from 18 to 34, who don’t want the sugar and calories in regular soda but don’t like the taste of artificial sweetener. This is fall in the Gender and age segmentation. Diet Coke Plus targets those are more health conscious. It is fall in Gender segmentation. Coca- Cola Blak: It is designed for older men have more money. It is in the gender and income segmentation. Full Throttle Blue Demon target Hispanic Men. This is in both gender and ethnic segmentation. 2. Some industry analysts think soft-drink companies should develop products that will bring new customers into the market rather than just creating variants on the old. They warn that products like Coke Zero will cannibalize lost market share from other soft drink categories instead of increasing the number of consumers overall. Which Coca-Cola products are most likely to lose customers to Coke Zero? Coke Zero is most likely to affect sales of Diet Coke Plus because Coke Zero has the same benefits and reaches the target market of Diet Coke Plus. Also,...
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...MRKT 310 Principles of Marketing What is Strategic Marketing? Diet Coke October 04th, 2015 1. Creating Value for Customers: Value is the benefit buyers receive that meets their needs (Principles of Marketing, 2015). Customers do not want only the products and services but want what those products and services will do for them as well. Companies create value for its customer by creating, communicating, delivering, and exchanging values. They do this by understanding their customers, describing the product and making the product available to the customers, For example, diet coke, consumers buy them for reduced calories. The consumers should be able to receive the reduced calorie it promised and at a good price compared to the alternative and at a convenient location. It should also be worth the price paid compared to other brands. It should also have the label describe the content of the calorie without the customers searching to hard to find it. 2. Role of customer in the company’s strategic plan: The coca cola mission statement is, “To refresh the world, to inspire moments of optimism and to create value and make a difference”. This mission statement creates a close link and communication with customers. The understanding of the consumers need leads the company’s strategic plan towards satisfying those needs. They survey the environment and conduct a research of the current and potential customers. A customer knowing that a company’s mission centers...
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...Prepare a pension worksheet presenting both years 20X2 and 20X3 and accompanying computations and amortization of the loss (20X3) using the corridor approach. (b) Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year. (c) For 20X3, indicate the pension amounts reported in the financial statements. Part II: The accounting records of Scotty inc show the following data for 20X2. 1. Life insurance expense of officers was $9,000. 2. Equipment was acquired in early January for $300,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes Scotty used a 30% rate to calculate depreciation. 3. Interest revenue on State of New York bonds totaled $4,000. 4. Product warranties in 20X2 were $10,000. The reminder is estimated...
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...week earlier that it would commit $2 billion on top of that to expansion in China over the next three years. When the government declared the deal dead, a chill blanketed boardrooms around the world. Is the climate for foreign firms in China cooling? Is protectionism rearing its ugly head? What happened? Retail sales in China are still growing at a double-digit rate despite the global financial turmoil. The country can no longer be considered an emerging market for many brands. It became the largest market in the world for automobiles earlier this year; car sales rose 25% in February after the government started issuing tax rebates for small engines. Companies are getting more and more of their revenues from China; Yum! Brands (nyse: YUM - news - people ) generates about a third of its revenue from its KFC and Pizza Hut sales in China. If the country turned inward, the effect on the bottom-line of businesses from Unilever to General Motors would be huge. However, China's government went to great lengths to indicate that the rejection of the deal was about monopoly, not protectionism. My own observations suggest that local officials throughout the country are green-lighting more investment projects faster now than at any time in the last three years, as fears about overheating and inflation give way to worries that more jobs will be lost on top of the 20 million already gone. While what some see as socialism creeps into American economic policy, China is going all out to jump-start...
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...define these leading companies provide the fodder NGOs are looking for to further their agendas. Global Exchange’s attacks on Starbucks over fair-trade coffee and against Nike over sweatshops in Asia, like the Center for Science and Environment’s (CSE) attack on Coca-Cola India, are all examples of NGOs using companies’ powerful reputations against them. Being an attractive target, however, need not imply vulnerability. Organizations and their leadership teams need to start thinking systematically, proactively, and strategically about their reputational risk from crises concerning CSR (corporate social responsibility) and take actions to mitigate these risks before they become reality. The CSE’s allegations of pesticide-contaminated Coke and Coca-Cola India’s response provide an important example of the world’s most important brand under attack and the steps taken in the aftermath. This example highlights the importance of a strong reputation, a willingness to collaborate, and a strategic response to successfully weathering the crisis. Purpose of the Case Study 1. To give students the opportunity to apply a strategic framework to corporate communications, in a foreign context, with a global brand 2. To identify how, why, and where an organization is vulnerable to a...
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