Why Smart Companies Do Dumb Things Essay Example | Topics and Well Written Essays - 750 words

Why Smart Companies Do unspoken Things - Essay ExampleThe desire to stay ahead of Pepsi and to be able to meet the taste of what Pepsi produces make the strategy of New ascorbic acid compelling to the executives of coca plant Cola.In the early 80s century lost its market share to its rival Pepsi by two share points which represented to about $960million sales of Coke production. Coke real trade problem was its advertisement and not its product. With a change in the soft drink consumer market, coke was not able to match up with the thought process with its commercials ads. Coca Cola had lost generation of young people with its bland advertising style. Coke advertising had a stodgy look and feel in comparison to Pepsi. Coke did not have either relevant statement for the youth in the 80s. It was being positioned as a beverage preferred by senior citizens in comparison to Pepsi ads which targeted the youths. As a result the guild did not pay any attention in improving the advertis ing rather focused on the product as marketing problem. Coke advertising strategy was no longer matching with the youth culture.Coke had researched every compute and projection before the launch of its New Coke and the figures were accurate but it mis-leaded the company as it allowed the company to chase the wrong problem. The problem was in advertisement strategy the executives thought it to be the product. The executive of Coke got carried away with fragile and funky numbers. It ignored the issue that impacted the quality of the numbers such as research design, problem definition, how to ask questions and the analytical skills which helped to interpret the meaning of the numbers. Numbers have always been authorized blithely and so did New Coke before its launch. New Coke marketing research lacked severity as it did not communicate to its consumer that its flagship brand would be replaced with new sweeter product and its research was one dimensional. It was base only in sip tes ting which took place at central locations and was