Brand Failures

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14 <strong>Brand</strong> failures competitor. As it became increasingly seen as ‘the drink of youth’ Pepsi managed to narrow the gap. In the 1970s, Coke’s chief rival raised the stakes even further by introducing the Pepsi Challenge – testing consumers blind on the difference between its own brand and ‘the real thing’. To the horror of Coca-Cola’s longstanding company president, Robert Woodruff, most of those who participated preferred Pepsi’s sweeter formula. In the 1980s Pepsi continued its offensive, taking the Pepsi Challenge around the globe and heralding the arrival of the ‘Pepsi Generation’. It also signed up celebrities likely to appeal to its target market such as Don Johnson and Michael Jackson (this tactic has survived into the new millennium, with figures like Britney Spears and Robbie Williams providing more recent endorsements). By the time Roberto Goizueta became chairman in 1981, Coke’s number one status was starting to look vulnerable. It was losing market share not only to Pepsi but also to some of the drinks produced by the Coca-Cola company itself, such as Fanta and Sprite. In particular the runaway success of Diet Coke was a double-edged sword, as it helped to shrink the sugar cola market. In 1983, the year Diet Coke moved into the number three position behind standard Coke and Pepsi, Coke’s market share had slipped to an all-time low of just under 24 per cent. Something clearly had to be done to secure Coke’s supremacy. Goizueta’s first response to the ‘Pepsi Challenge’ phenomenon was to launch an advertising campaign in 1984, praising Coke for being less sweet than Pepsi. The television ads were fronted by Bill Cosby, at that time one of the most familiar faces on the planet, and clearly someone who was too old to be part of the Pepsi Generation. The impact of such efforts to set Coca-Cola apart from its rival was limited. Coke’s share of the market remained the same while Pepsi was catching up. Another worry was that when shoppers had the choice, such as in their local supermarket, they tended to plump for Pepsi. It was only Coke’s more effective distribution which kept it ahead. For instance, there were still considerably more vending machines selling Coke than Pepsi. Even so, there was no getting away from the fact that despite the proliferation of soft drink brands, Pepsi was winning new customers. Having already lost on taste, the last thing Coca-Cola could afford was to lose its number one status.
Classic failures 15 The problem, as Coca-Cola perceived it, came down to the product itself. As the Pepsi Challenge had highlighted millions of times over, Coke could always be defeated when it came down to taste. This seemed to be confirmed by the success of Diet Coke which was closer to Pepsi in terms of flavour. So in what must have been seen as a logical step, Coca-Cola started working on a new formula. A year later they had arrived at New Coke. Having produced its new formula, the Atlanta-based company conducted 200,000 taste tests to see how it fared. The results were overwhelming. Not only did it taste better than the original, but people preferred it to Pepsi-Cola as well. However, if Coca-Cola was to stay ahead of Pepsi-Cola it couldn’t have two directly competing products on the shelves at the same time. It therefore decided to scrap the original Coca-Cola and introduced New Coke in its place. The trouble was that the Coca-Cola company had severely underestimated the power of its first brand. As soon as the decision was announced, a large percentage of the US population immediately decided to boycott the new product. On 23 April 1985 New Coke was introduced and a few days later the production of original Coke was stopped. This joint decision has since been referred to as ‘the biggest marketing blunder of all time’. Sales of New Coke were low and public outrage was high at the fact that the original was no longer available. It soon became clear that Coca-Cola had little choice but to bring back its original brand and formula. ‘We have heard you,’ said Goizueta at a press conference on 11 July 1985. He then left it to the company’s chief operating officer Donald Keough to announce the return of the product. Keough admitted: The simple fact is that all the time and money and skill poured into consumer research on the new Coca-Cola could not measure or reveal the deep and abiding emotional attachment to original Coca-Cola felt by so many people. The passion for original Coca-Cola – and that is the word for it, passion – was something that caught us by surprise. It is a wonderful American mystery, a lovely American enigma, and you cannot measure it any more than you can measure love, pride or patriotism.
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Page 4 and 5: Brand Failures
Page 6 and 7: Brand Failures Matt Haig
Page 8 and 9: Contents 1. Introduction 1 Why bran
Page 10 and 11: Contents vii 6. Culture failures 15
Page 12 and 13: 4 Brand failures didn’t matter. A
Page 14 and 15: 6 Brand failures market for which i
Page 16 and 17: 8 Brand failures without trace are
Page 19: Some brand failures have proved so
Page 24 and 25: 16 Brand failures In other words, C
Page 26 and 27: 18 Brand failures Lessons from New
Page 28 and 29: 20 Brand failures among employees t
Page 30 and 31: 22 Brand failures years previously
Page 32 and 33: 24 Brand failures Mustang was the s
Page 34 and 35: 26 Brand failures 3 Sony Betamax Ac
Page 36 and 37: 28 Brand failures and retailers, wh
Page 38 and 39: 30 Brand failures 4 McDonald’s Ar
Page 40 and 41: 32 Brand failures Lessons from Arch
Page 42 and 43: 34 Brand failures
Page 44 and 45: 36 Brand failures up with the idea
Page 46 and 47: 38 Brand failures Factor two: cool
Page 48 and 49: 40 Brand failures 6 Sony’s Godzil
Page 50 and 51: 42 Brand failures the possible exce
Page 52 and 53: 44 Brand failures 7 Persil Power On
Page 54 and 55: 46 Brand failures But the advantage
Page 56 and 57: 48 Brand failures easily, Pepsi rem
Page 58 and 59: 50 Brand failures 9 Earring Magic K
Page 60 and 61: 52 Brand failures Lesson from Earri
Page 62 and 63: 54 Brand failures on it,’ wrote B
Page 64 and 65: 56 Brand failures Clearly if Corfam
Page 66 and 67: 58 Brand failures been officially r
Page 68 and 69: 60 Brand failures ‘There are risk
Page 70 and 71: 62 Brand failures 13 Oranjolt The d
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64 Brand failures 14 La Femme Where
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66 Brand failures patronizing. This
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16 Clairol’s ‘Touch of Yoghurt
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18 Maxwell House ready-to-drink cof
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20 Thirsty Cat! and Thirsty Dog! Bo
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Barron’s Dictionary of Business T
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Extension failures 77 21 Harley Dav
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Extension failures 79 making up the
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Extension failures 81 Keep it tigh
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23 Crest Stretching a brand to its
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Extension failures 85 ‘No toothpa
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Extension failures 87 24 Heinz All
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Extension failures 89 Lessons from
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Extension failures 91 the no-nonsen
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Extension failures 93 Have a core
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Extension failures 95 In the mid-19
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Extension failures 97 every brand -
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Extension failures 99 sales rose to
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Extension failures 101 However, amo
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Extension failures 103 29 Chiquita
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Extension failures 105 A brand is
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31 Ben-Gay Aspirin Ben-Gay is anoth
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33 Smith and Wesson mountain bikes
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35 Lynx barbershop Lever Fabergé,
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37 LifeSavers Soda Invented in 1912
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39 Frito-Lay Lemonade Frito-Lay is
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It can be expected that brands will
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PR failures 121 40 Exxon Don’t sa
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PR failures 123 including the clean
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PR failures 125 environmentalists,
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PR failures 127 the public. [. . .]
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PR failures 129 42 Perrier’s benz
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PR failures 131 common purpose thro
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PR failures 133 Lesson from Pan Am
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PR failures 135 In addition, Snow B
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PR failures 137 45 Rely tampons Pro
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PR failures 139 Lessons from Rely
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PR failures 141 As Gerber saw it, a
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PR failures 143 regarding youth mar
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PR failures 145 buying about 40 per
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PR failures 147 Be sensitive. By s
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PR failures 149 Remember that comp
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Brands operate on a global scale. B
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156 Brand failures of the Bombay St
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158 Brand failures Coca-Cola. The
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160 Brand failures Lessons from Kel
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162 Brand failures Translation trou
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53 Schweppes Tonic Water in Italy I
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55 Electrolux in the United States
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57 Coors in Spain Coors beer had eq
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59 Clairol’s Mist Stick in German
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61 American Airlines in Mexico When
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63 Kentucky Fried Chicken in Hong K
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176 Brand failures ment. Pretty soo
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178 Brand failures 65 Quaker Oats
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180 Brand failures Lessons from Sna
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The people behind a brand are its m
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People failures 185 66 Enron Failin
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People failures 187 67 Arthur Ander
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People failures 189 68 Ratner’s W
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People failures 191 met comedians w
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People failures 193 was out, Planet
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People failures 195 is wrong to lea
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People failures 197 had lost the su
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People failures 199 tortilla brand
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Brands, like people, have a fear of
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Rebranding failures 205 73 Consigni
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Rebranding failures 207 of the name
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Rebranding failures 209 74 Tommy Hi
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Rebranding failures 211 style that
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Rebranding failures 213 in the Repu
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Rebranding failures 215 former secr
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Rebranding failures 217 Lessons fro
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Rebranding failures 219 neighbours
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79 British Airways When British Air
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CHAPTER 9 Internet and new technolo
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226 Brand failures now believe bran
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81 Pets.com In the mid-1990s, when
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Internet and new technology failure
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All brands will eventually fail. Th
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262 Brand failures The $600-million
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264 Brand failures Lessons from Old
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266 Brand failures interview. ‘An
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268 Brand failures 91 Ovaltine When
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270 Brand failures 92 Kodak Failing
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272 Brand failures tive strategy if
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274 Brand failures 93 Polaroid Live
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276 Brand failures launch of its SX
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278 Brand failures ‘was that they
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280 Brand failures 94 Rover A dog o
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282 Brand failures 95 Moulinex Goin
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284 Brand failures 96 Nova magazine
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286 Brand failures The cycle of lau
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288 Brand failures As with most bra
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290 Brand failures For the Levi’s
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292 Brand failures to the stores in
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294 Brand failures One argument was
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296 Brand failures market is 18-24
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298 Brand failures 100 Yardley cosm
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300 References
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302 References Malmsten, E, Portang
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304 Index candour see honesty Capit
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306 Index ideas failures 71, 82 hea
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308 Index and extension 93 New Coke
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310 Index Taiwan 163 tampons 137-39
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Brand Failures

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