Punchline: “Admitting a mistake is almost constitutionally impossible for today’s corporate chiefs, and even harder for politicians. Sometimes it’s best to admit your mistakes. Presidents, like CEOs, can pay a steep price for not admitting error.”
Note: My students will know that I’m conflicted on this one. While I like the message and the implied recommendation, I may be the last living person who thinks that New Coke was a strategic coup — it got Coke plenty of heightened exposure, it strengthened ties with the Classic Coke buyer (when Classic was promptly re-introduced), it got Coke extra shelf facings (New Coke + Classic Coke), and it provided the flavor formula for Diet Coke (<= bet you didn’t know that).
* * * * *
Excerpted from WSJ: ObamaCare and New Coke, April 24, 2010
This week marked the 25th anniversary of the introduction of “New Coke.”
New Coke was not just another product launch: It crossed over from product marketing into the social and political sphere.
New Coke was introduced by the company with high hopes: It was a drink that consumers in blind taste tests rated superior not only to Pepsi, but also to Coca-Cola.
Despite consumers’ immediate acceptance of the new beverage and an initial jump in sales, resistance began to form in small protests around the country. Sales began to lag.
The objection was not so much to the new product itself, but to the company’s hubris in removing the traditional Coca-Cola from the shelves to make way for the new.
* * * * *
There may be some lessons here regarding ObamaCare.
Just as most Americans were happy with the old Coke, 85% of Americans were happy with their own health-care plans at the time that ObamaCare was introduced.
In essence, those plans were taken away from them in the same way the old Coke was taken away.
And, as was the case with New Coke, opposition has continued to grow.
This is personal for the American people.
* * * * *
Faced with a successful launch but growing and vocal public resistance, the Coca-Cola Company’s leadership did the extraordinary.
Coke reversed paths and returned classic Coca-Cola to supermarket shelves just 77 days after the debut of New Coke.
Coke said: We were wrong, but at least we’re smart enough to listen to you.
People not only rejoiced, they rewarded the company with unprecedented gains in volume and market share.
* * * * *
Full article:
http://online.wsj.com/article/SB10001424052748703876404575200550394710626.html?mod=djemEditorialPage_h
The Homa Files 
April 26, 2010 at 9:26 am |
With all the conversation around the 25th anniversary of the New Coke launch, I thought it would have been interesting for Coke to celebrate it. They could put it as a secret “pour” on the new Freestyle fountains that Coke is quietly launching – currently in Atlanta and California.