In this episode, we dust off a campaign that shook the world of soft drinks and left us a lesson about the power of nostalgia and brand loyalty. Is a new formula always better? Join us on this journey to the past to find out.
The Pepsi Challenge
In 1985, Coca-Cola, the soft drink giant, decided to take a bold swipe at its eternal rival, Pepsi. After years of losing market share to Pepsi's aggressive "Pepsi Challenge" campaign, Coca-Cola decided to change the formula of its flagship product and launch "New Coke." The new formula was sweeter and, according to blind taste tests, surpassed Pepsi in preference.
The company bet everything on this new formula, investing millions in advertising and marketing to promote "New Coke" as the future of soft drinks. The campaign focused on the improved taste, innovation, and the idea that Coca-Cola was listening to its consumers.
The New Coke
The launch of "New Coke" was an epic disaster. Consumers, far from embracing the new formula, rebelled. Coca-Cola's phone lines were jammed with complaints, protests and boycotts were organized, and the media echoed the widespread discontent.
"New Coke" became a symbol of corporate arrogance and disrespect for tradition. Consumers didn't want a new Coca-Cola, they wanted the old Coca-Cola. Faced with public pressure and millions in losses, Coca-Cola was forced to backtrack and reintroduce the original formula under the name "Coca-Cola Classic."
This campaign is a classic example of how a company can lose its way by obsessing over competition and underestimating the emotional power of its brand. Coca-Cola focused on winning the "Pepsi Challenge" instead of listening to its loyal consumers, who valued the tradition and nostalgia associated with the original formula.
The campaign also demonstrated the importance of authenticity and emotional connection in marketing. Consumers are not only looking for a good product, but also for a brand that speaks to them on a personal level and makes them feel part of something bigger.
The question for the AI
What do you think about conducting a blind taste test between our traditional product and the competitor's, highlighting our improved taste, for the launch of our new drink?
The AI's response: The idea of the blind taste challenge is interesting and could be effective in highlighting the improved taste of your new product. However, it is important to consider some aspects to ensure that the campaign is responsible:
Respect for tradition: While the main focus is on the improved taste, it is important to recognize and value the tradition of your product. You can incorporate elements that reference its history and legacy, showing how the new version maintains the essence of the traditional.
Consideration of other factors: Taste is important, but it is not the only factor that influences the purchase decision. Consider including information on other relevant aspects, such as the quality of the ingredients, the sustainable production process, or the social impact of your brand.
Emphasis on the consumer experience: Instead of focusing solely on winning the challenge, seek to create a positive experience for consumers. Invite them to participate, share their opinions, and discover for themselves the qualities of your product.
By taking these principles into account, you will be able to develop an ethical, responsible marketing campaign with a positive impact on society.
Personalizing with the Coca-Cola connection index
Inspired by the challenge Coca-Cola faced with "New Coke," we propose a predictive revenue marketing strategy that not only seeks to avoid past mistakes but also capitalize on the power of personalization. This example is for educational purposes, using a strategy called "Coca-Cola: Uncap Your Story" to drive revenue growth and market share by creating deep emotional connections with consumers through highly personalized marketing experiences.
The Coca-Cola Connection Index:
The Coca-Cola Connection Index is a dynamic scoring system that assesses each consumer's level of engagement and affinity with the brand. It's based on a combination of demographic, behavioral, and psychographic data, including:
Demographic Data: Age, location, gender, socioeconomic level.
Behavioral Data: Purchase history, consumption frequency, interaction with Coca-Cola ads and content on social media and other channels.
Psychographic Data: Interests, values, lifestyle, personality (determined through surveys, questionnaires, and analysis of social media interactions).
Score Assignment:
Base Score: Each consumer starts with a base score based on their demographic data.
Behavioral Score: Points are added or subtracted based on purchase history and interaction with the brand.
Psychographic Score: The score is adjusted based on the alignment of the consumer's values and interests with those of Coca-Cola.
Personalization Based on Scoring:
Level 1: "Initial Connection" (Low Score):
Content: Generic ads highlighting the happiness and refreshment associated with Coca-Cola.
Offers: General discounts on Coca-Cola products.
Level 2: "Growing Connection" (Medium Score):
Content: Personalized stories that link Coca-Cola to special moments in the consumer's life (e.g., birthdays, graduations).
Offers: Personalized coupons for the consumer's preferred Coca-Cola products.
Experiences: Invitations to exclusive Coca-Cola events (virtual or in-person).
Level 3: "Deep Connection" (High Score):
Content: Personalized videos showing images of the consumer enjoying Coca-Cola at key moments in their life, with evocative music and messages.
Offers: Early access to new products, limited editions, and unique experiences (e.g., meeting a brand ambassador).
Recognition: Special mentions on social media, participation in advertising campaigns, and VIP loyalty programs.
Content Personalization Strategy:
In addition to the scoring system and personalizations based on it, we'll implement an additional layer of content personalization to maximize the emotional impact and relevance of messages for each consumer.
Types of personalized content:
Dynamic visual stories: We'll use artificial intelligence tools to generate short videos that combine consumer images and videos (obtained with their consent) with iconic moments from Coca-Cola's history. These videos will be adapted to the consumer's context (e.g., a story about friendship if the consumer frequently interacts with friend-related content).
Personalized emails and Ads: We'll send emails and create paid ad campaigns with relevant content and personalized offers based on the consumer's purchase history and preferences. For example, an email or YouTube video with dessert recipes using Coca-Cola for a consumer who regularly buys baking products.
Interactive experiences: We'll develop personalized online games and quizzes that allow consumers to discover fun facts about Coca-Cola and their own history with the brand. These games can offer rewards like discounts or exclusive products.
Benefits of content personalization:
Increased Engagement: Relevant and personalized content increases consumer interest and participation.
Emotional Connection: Personalized stories create deeper emotional connections with the brand.
Increased Conversions: Relevant content and personalized offers increase the likelihood of purchase.
Loyalty: Personalized and relevant experiences foster brand loyalty.
Ethical considerations:
Transparency: Informing consumers about how their data is collected and used.
Consent: Obtaining explicit permission from consumers before collecting or using their data.
Security: Implementing robust security measures to protect consumer data.
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