Stories
New Coke – A Failure In Market Research
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
A decade ago, the success of a startup was measured largely by its ability to raise capital. Today, a different metric is gaining importance: the ability to generate meaningful exits for investors. Large stake sales by early backers are becoming increasingly common, not because growth opportunities have disappeared, but because India’s startup ecosystem is entering a more mature phase where capital is expected to complete its full cycle from investment to returns.
This evolution is particularly significant for consumer brands that have successfully blended technology, retail, and strong brand-building. Companies that were once viewed as high-risk startup bets are now attracting institutional investors capable of absorbing large transactions. Such developments indicate that these businesses are no longer being valued solely on future potential; they are increasingly being assessed on operational performance, market leadership, and long-term profitability. In many ways, investor exits are becoming a validation of a company’s ability to create lasting enterprise value.
The broader implication extends beyond a single company or investor. Successful exits encourage more global capital to enter India’s startup ecosystem because they demonstrate that liquidity opportunities exist at scale. As more venture-backed companies approach public listings, secondary transactions, or strategic investments, the focus of founders and investors alike may shift from chasing headline valuations to building durable businesses. The next chapter of India’s startup journey will likely be defined not just by the creation of unicorns, but by the creation of companies capable of delivering sustained returns to all stakeholders.
Apple has unveiled the new MacBook Air with M5 chip, starting at $999 for 13-inch and $1,299 for 15-inch models. The MacBook Air M5 boasts a 2nm M5 chip with 12-core CPU, 18-core GPU, and 50 TOPS Neural Engine for seamless AI tasks like real-time translation and 8K editing. Up to 22 hours of battery life, Thunderbolt 5, and Wi-Fi 7 make it the ultimate ultraportable, now 10% thinner at 0.44 inches with fanless cooling.
Key MacBook Air M5 features include Liquid Retina XDR display (500 nits, nano-texture option), 12MP Center Stage camera, and six-speaker Spatial Audio. Colors like new Sky Blue join Midnight and Starlight. Pre-orders are live today, with macOS Sequoia 15.4 enhancing Apple Intelligence and iPhone Continuity for students, pros, and remote workers.
Why buy MacBook Air M5 now? It outpaces Snapdragon X Elite rivals with ecosystem magic and future-proof performance, eyeing top 2026 laptop sales. CEO Tim Cook calls it “more capable than ever.” Visit apple.com for M5 MacBook deals and specs.
Delhi NCR-based gaming startup Zupee has acquired Mumbai-based microdrama platform Vertical TV in a deal valued under INR 40 Cr. This move strengthens Zupee Studio, its short-video arm launched in September 2025, by integrating Vertical TV’s expertise in bite-sized dramas like romance and thrillers.
Facing challenges from India’s 2025 real-money gaming ban, Zupee valued at $1 Bn after raising $120 Mn has pivoted to non-gaming content, including recent layoffs of 40% of its workforce. The acquisition builds on its November 2025 purchase of Australian AI firm Nucanon for interactive storytelling, targeting its 200 Mn+ users with engaging, mobile-first formats.
This deal underscores the rising microdrama trend in India, helping Zupee diversify amid regulatory pressures and compete in the short-video space dominated by quick, shareable content for on-the-go audiences.
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