26Oct

The credit lesson for competitors

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76Coca-Cola introduced new Coke after taste tests proved it more popular than Pepsi and the original Coke. However, the launch of new Coke contained an untested assumption: that flavour mattered more than image. The information gathered built upon this flawed notion, confirming the decision that classic Coke needed to be replaced. This view was contrary to what customers – past, present and future – actually wanted. Interestingly, this goodwill was so powerful that the cause of the company’s failure was also the source of its salvation, as consumers forgave Coca- Cola and realised that they appreciated classic Coke, or else tried it for the first time.

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