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New Coke – A Failure In Market Research

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New Coke Failure In Market Research,Startup Stories,Latest Business News 2019,New Coke Failure Story,New Coke Market Research,Coke market research failed,New Coke Latest News,Reasons of failure of New Coke,Coca Cola Market Research,New Coke Brand

Coca-Cola is a brand which became a household name all over the world.  It is not hard to find a Coca-Cola beverage in a remote location in different parts of the world.  This outreach was achieved over decades by brilliant marketing, brand positioning and word of mouth publicity.  However, the public relations (PR) disaster which Coke had to endure due to the release of New Coke will be a case study at many business schools about market research gone wrong.

Coca-Cola vs Pepsi

Pepsi was a new beverage manufacturer which came out with its own version of the cola and quickly ate into the market share which used to be controlled by Coca-Cola.  Pepsi was sweeter than Coca-Cola and they were positioning themselves as the next gen beverage for the youth in the ’70s and the ’80s. The management at Coca-Cola decided to reinvent Coke by making a sweeter cola concentrate and introducing it into the market.

Market Research

The research was done on focus groups and surveys were taken, where participants were subjected to a blind taste test and were asked to choose from Pepsi, the original Coca-Cola and the New Coke.  As many as 2,00,000 participants were asked to take the taste test. A majority of them chose the New Coke. This led to the conclusion Coca-Cola had its hands on a successful product which would finally let it take back its market share from Pepsi.  After the initial survey, it was found 10 % to 13 % of the participants were disgruntled and responded they might stop drinking Coke altogether. The remaining participants had not been clearly informed about the decision the New Coke would replace the original Coke and this affected the results of the research.  The research focussed only on the physical properties and failed to take into consideration the attachment and cultural acceptance of the original Coke by the American society. Many Americans favoured tradition over novelty. Once Coca-Cola officially announced they would stop the production of the original Coke and would begin selling only the New Coke, it turned their market base into angry consumers.

Return of the Classic Coke

People began to organize protests at the grassroot level, demanding the Classic Coke be brought back.  The Company hotline received over 1,500 calls a day with people complaining about the new product. The press got onto it as well, with articles ridiculing the new flavour being widely published.  The Company had to finally take note and made an official statement a little over three months after launching the New Coke. It said the New Coke would be discontinued and the Company would go back to the original formula.  The original Coke was then rebranded as Coca-Cola Classic. The American public took to this news positively and it reflected on their sales as well.

This goes on to show market research is not just about investing millions but also about taking into consideration the quantitative as well as qualitative feedback and coming up with a solid execution plan.

Bonus tidbit

Coca-Cola decided to do a little bit of marketing and made a limited batch of New Coke for a promotional campaign on the Netflix TV show Stranger Things Season 3, which is set in the year 1985.

Read more about : Best Coca-Cola Marketing Campaigns

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OpenAI Expands ChatGPT Advanced Voice Mode to Web Users!

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OpenAI Expands ChatGPT Advanced Voice Mode to Web Users!

OpenAI has introduced its Advanced Voice mode for ChatGPT on the web, extending the feature that was previously available only on iOS and Android apps. This announcement, made via a post on X (formerly Twitter), signifies a significant expansion of the conversational capabilities of ChatGPT to desktop users.

Enhancing User Interaction

The Advanced Voice mode aims to make interactions with ChatGPT more natural and conversational. The feature is being rolled out this week to subscribers of ChatGPT Plus, Enterprise, Teams, and Edu. Free-tier users will have to wait a few weeks to access the feature as part of a limited monthly preview.

How to Use Advanced Voice Mode on the Web

Activating the voice feature on the web is straightforward. Users simply need to click the Voice icon in the prompt window’s bottom-right corner and grant their browser permission to access their microphone. Once activated, a blue orb at the center of the screen indicates that voice chat is active.

The voice feature offers nine output voices with unique tones and personalities. OpenAI has introduced five new voices—Arbor, Maple, Sol, Spruce, and Vale—in addition to existing options like Breeze, Juniper, Cove, and Ember. These voices are designed to create a lifelike and engaging dialogue experience, each with distinct emotional tones and the ability to emphasize certain words for more natural interaction.

For instance:

  • Arbor is described as “easygoing and versatile.”
  • Ember conveys a “confident and optimistic” tone.

This nature-inspired naming reflects OpenAI’s focus on making AI interactions feel smoother and more relatable.

Usage Limits for Subscribers

While paying users gain early access to this feature, there are daily usage limits in place. Plus and Teams subscribers will receive notifications when they have 15 minutes of voice usage left for the day. Free users will receive limited monthly access to test the feature.

Kevin Weil, OpenAI’s Chief Product Officer, noted that these measures are necessary to manage resource availability as the feature scales up.

A Controversial Missing Voice

One notable absence is the previously available “Sky” voice, which was removed following legal and ethical controversies. Critics alleged that Sky bore a striking resemblance to Hollywood actress Scarlett Johansson’s voice, leading to backlash and a lawsuit against OpenAI. Johansson’s legal representatives claimed that the company lacked permission to use a voice that closely mimicked her own. In response, OpenAI suspended this feature in May 2024.

OpenAI stated that any resemblance was unintentional, but internal comments referencing the film Her, where Johansson voiced an AI assistant, added fuel to the controversy. The company has since refrained from including voices that could lead to similar disputes.

What’s Next for Advanced Voice Mode

With this introduction of Advanced Voice mode on the web, OpenAI is taking another step toward making AI interactions feel more personal and accessible. The feature promises to transform user experiences by combining natural dialogue capabilities with versatile voice options.

As the rollout continues, OpenAI is expected to refine this feature further, eventually extending it to all ChatGPT users while addressing concerns around voice replication and ethical usage.

Future Enhancements

OpenAI plans ongoing improvements based on user feedback and technological advancements. The goal is not only to enhance user experience but also to ensure compliance with legal standards regarding voice replication.

In summary, with Advanced Voice mode now available on web platforms, OpenAI reinforces its commitment to creating engaging AI experiences that cater to diverse user preferences while navigating complex ethical landscapes associated with voice technology.

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Zepto Secures $300 Million, Doubling Its Funding Target Amid Quick Commerce Battle!

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Zepto Secures $300 Million, Doubling Its Funding Target Amid Quick Commerce Battle!

Quick commerce startup Zepto is gearing up to raise $300 million from domestic investors, doubling its initial funding target, according to a report by The Economic Times. This latest funding round underscores Zepto’s growing influence in the competitive quick commerce sector, where it competes against Zomato’s Blinkit and Swiggy’s Instamart.

Overwhelming Investor Interest

The funding round has reportedly been oversubscribed, attracting prominent Indian family offices and ultra-high net worth individuals (ultra-HNIs). This reflects strong confidence in the sector and Zepto’s potential. The company has previously raised $1 billion and continues to position itself as a leading player in the booming quick commerce market.

Previous Funding Rounds

Zepto’s recent fundraising efforts have been impressive. In June, the company raised $665 million at a valuation of $3.6 billion, marking one of the largest financing rounds in the quick commerce space this year. The Series F round was co-led by existing investors such as StepStone Group, Nexus Venture Partners, and Glade Brook Capital, with new investors like Avenir Growth and Lightspeed Venture Partners joining in.

Increased Indian Ownership

Following this round, Indian ownership in Zepto is expected to surge to approximately 35%, which includes stakes held by its founders, Aadit Palicha and Kaivalya Vohra. Sources revealed that the founders have been granted an additional 1% equity for achieving key performance milestones.

Strategic Focus on Domestic Investors

Zepto’s strategy emphasizes building a strong base of Indian investors ahead of its anticipated IPO. The company aims to deepen relationships with high-quality domestic investors as part of its preparations for going public.

Celebrity and Corporate Participation

The funding round has attracted high-profile backers, including Bollywood legend Amitabh Bachchan and cricket icon Sachin Tendulkar, highlighting the optimism surrounding Zepto’s growth. Prominent investors such as the Ravi Jaipuria-led RJ Corp, Harsh Goenka’s RPG group, and the Motilal Oswal group have also committed significant funds. Notably, Motilal Oswal reportedly increased its commitment from $40 million to over $60 million.

Diverse Investor Base

Additionally, participation from other notable figures like Ranjan Pai of the Manipal Group and Ramesh and Rajeev Juneja of Mankind Pharma further solidifies Zepto’s support from domestic heavyweights.

Valuation and Stake Sale

Zepto is reportedly selling a 6% stake at a valuation of $5 billion, reflecting its growing dominance in the quick commerce space. A source familiar with the development stated, “The round was oversubscribed, prompting Zepto to increase the total offering.”

Focus on Growth and Innovation

With 1 million daily orders, Zepto has emerged as the only large private player in the quick commerce sector, distinguishing itself from publicly listed competitors like Swiggy and Blinkit. The company plans to expand its operations significantly over the next year by opening new dark stores—mini warehouses for rapid delivery—in various cities across India.

Expansion Plans

Zepto aims to increase its number of dark stores from around 350 to 700 by March 2025. This expansion is crucial as it seeks to enhance delivery speed and efficiency while meeting rising consumer demand for quick commerce solutions.

A Bright Future Ahead

Zepto’s ability to attract significant domestic investment and its strategic focus on Indian ownership signal its readiness to scale further in the competitive quick commerce market. This funding round positions Zepto for robust growth as it prepares for its next big milestone: going public.

Market Dynamics

As competition intensifies in India’s quick commerce sector, Zepto’s aggressive expansion strategy and strong financial backing will be critical in maintaining its market leadership against rivals like Zomato’s Blinkit and Swiggy’s Instamart.

Conclusion

With a successful track record of fundraising and an ambitious growth strategy, Zepto is well-positioned to capitalize on the burgeoning demand for quick commerce services in India. The recent funding initiatives not only reflect investor confidence but also underscore Zepto’s commitment to enhancing customer experience through innovation and operational excellence.

As it gears up for an IPO, Zepto’s focus on building a robust foundation with domestic investors will play a pivotal role in its long-term success in the rapidly evolving e-commerce landscape.

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Reliance, Viacom18, and Disney Complete Merger to Form ₹70,352 Crore Joint Venture!

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Reliance, Viacom18, and Disney Complete Merger to Form ₹70,352 Crore Joint Venture!

The much-anticipated merger of Reliance Industries Limited (RIL), Viacom18, and The Walt Disney Company’s media and digital assets has officially taken shape, creating a joint venture (JV) valued at ₹70,352 crore (approximately $8.5 billion). This transformative partnership brings together some of India’s most iconic television and digital brands, including Star, Colors, JioCinema, and Hotstar, into a single entity poised to dominate the media and entertainment landscape.

Regulatory Approvals and Details of the Merger

The merger received approvals from the National Company Law Tribunal (NCLT), the Competition Commission of India (CCI), and other regulatory authorities. The JV excludes anticipated synergies in its valuation and marks a significant milestone in the evolution of India’s media sector. The transaction is seen as a strategic move to consolidate resources and enhance content offerings in a highly competitive market.

Investment and Ownership Structure

Reliance Industries Limited invested ₹11,500 crore (~$1.4 billion) into the JV to drive growth and innovation. The post-merger ownership structure stands as follows:

  • RIL: 16.34%
  • Viacom18: 46.82%
  • Disney: 36.84%

Additionally, RIL acquired Paramount Global’s 13.01% stake in Viacom18 for ₹4,286 crore, restructuring ownership within Viacom18 to:

  • RIL: 70.49%
  • Network18 Media & Investments Ltd.: 13.54%
  • Bodhi Tree Systems: 15.97% (fully diluted).

A Media and Entertainment Powerhouse

The newly formed JV will operate over 100 television channels, producing an annual output of more than 30,000 hours of content. Its digital platforms, JioCinema and Hotstar, collectively boast a subscriber base exceeding 50 million. The JV also holds an impressive portfolio of sports broadcasting rights, covering cricket, football, and other major events.

Content Strategy

By combining resources from both Viacom18 and Disney, the JV aims to enhance its content library significantly. This includes leveraging popular franchises and exclusive sports rights to attract a broader audience across various demographics.

Leadership and Vision

Nita M. Ambani will serve as Chairperson of the JV, with Uday Shankar as Vice Chairperson, providing strategic guidance. Other key leaders include:

  • Kevin Vaz (Entertainment)
  • Kiran Mani (Digital Operations)
  • Sanjog Gupta (Sports)

The JV’s pro forma combined revenue for FY 2023-24 is estimated at approximately ₹26,000 crore (~$3.1 billion), cementing its position as one of India’s largest media and entertainment companies.

Leadership Insights

Mukesh D. Ambani, Chairman & Managing Director of Reliance Industries Limited, called the merger a “transformational era” for Indian media. He stated, “Our collaboration with Disney and deep understanding of Indian audiences will provide unparalleled content choices at affordable prices.”

Robert A. Iger, CEO of The Walt Disney Company, expressed enthusiasm for expanding in India’s critical media market: “This JV will offer a robust portfolio of entertainment, sports content, and digital services, benefiting millions of viewers.”

Global and Local Impacts

The JV’s global significance is underscored by approvals from antitrust authorities in the EU, China, Turkey, South Korea, and Ukraine, alongside India’s CCI. This extensive regulatory approval reflects the merger’s strategic importance on both local and international fronts.

A Transformative Future

The merger not only reshapes the Indian media industry but also strengthens the global footprint of the entities involved. With strong leadership, a massive content portfolio, and innovative strategies, the JV is set to revolutionize entertainment in India and beyond.

Future Challenges

While the merger presents numerous opportunities for growth and innovation, it also poses challenges related to integrating two distinct corporate cultures and managing overlapping content strategies effectively.

Conclusion

The completion of this monumental merger between Reliance Industries Limited, Viacom18, and Disney marks a new chapter in India’s media landscape. By combining their strengths and resources into a single powerhouse entity, they aim to redefine entertainment consumption in India while expanding their influence globally.

As this joint venture progresses, it will be closely watched by industry stakeholders for its impact on content diversity, viewer engagement strategies, and overall market dynamics in the rapidly evolving media sector.

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