Essay on Application Process of Market Research (Coca-Cola Company)

2272 Words Nov 27th, 2010 10 Pages
Application Process of Market Research
(Coca-Cola Company)

Vas Gergő
Teacher: Zsófia Kárász Whether your goal is to expand into new markets, introduce a new product or service, or gauge customer reactions, even the smallest businesses can benefit from a simple but well-planned market-research study. Market research helps you to understand your market, your customers, your competitors, and larger industry trends. High-quality research will reveal details about your current customers and will help you to target new customers. Even in case of the establishing of a new market research for the Coca Cola Company every aspect of the marketing plan must be critically examined and thoroughly researched. This consists of examining
…show more content…
Due to the fact that what people actually do is often a better indicator than what they say they will do. The last method is the experimental method. It is a research technique in which one or more marketing variables are observed under controlled conditions. This kind of research used least often because of the high costs of setting up the research situation and the controlled setting. Of course there are cases when market research is a failure or a success. Coca-Cola's introduction of New Coke in the 1980’s demonstrates what happens when decisions aren't supported by solid research. Coke revised the formula of its traditional brand of soft drink and lost millions in sales. By performing a study and determining what people thought of the new formula, the company could have avoided public-relations headaches. Before Coca-Cola launched 'New Coke' they had invested US$4,000,000 in market research and undertook 200,000 blind taste tests. In all these blind (unbranded) taste tests the New Coke outperformed both Pepsi and existing Coke. These blind taste tests were the basis of the launch of 'New Coke' in 1985. The launch created a public outcry, with Coke receiving over 40,000 letters of complaint and over 6,000 calls a day to the company's phone number. After only 87 days the company responded to the public's demands and re-introduced the original Coke formula. How had the Coca-Cola management got it so wrong? They had

Related Documents