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BR_BackgroundInformation1BackgroundInformationAsthegloballeaderinthenonalcoholicbeverageindustry,theCoca-ColaCompanyoffersnearly400brandsinover200countries,rangingfromsoftdrinksandfruitjuices,tobottledwatersandsportsdrinks.Morethan1.3billiontimesadaysomeoneenjoysoneofitsbeverages.Anditbringswithitenormousbusinessopportunitiesandgreatresponsibility.BackgroundInformationVideoClipGroupDiscussionSpotDictationBR_BackgroundInformation2PepsiCoisaworldleaderinconvenientfoodsandbeverages,with2005revenuesofmorethan$32billionandmorethan157,000employees.ThecompanyconsistsofFrito-LayNorthAmerica,PepsiCoBeveragesNorthAmerica,PepsiCoInternationalandQuakerFoodsNorthAmerica.PepsiCobrandsareavailableinnearly200countriesandgenerateannualsalesattheretaillevelofabout$85billion.BackgroundInformationVideoClipGroupDiscussionSpotDictationBR_VideoClip1VideoClipSourceMarketingPlanningGroupDiscussionSpotDictationBackgroundInformationVideoClipForvideoscript,pleasescrolldownthepage.BR_VideoClip2Questions:1.2.Whatdoesamarketingplanreferto?Whatisthemainideaofamarketingprocess?KeyItreferstotheplanformarketingofacompany.KeyThemainideaoftheprocessistostartwithbroadideasandgoalsandthennarrowthemdowntospecificgoalsandactions.VideoClipSpotDictationBackgroundInformationVideoClipGroupDiscussionBR_groupdiscussionGroupDiscussion1.2.Doyouknowanysuccessstoriesaboutbigcompanies?Whatarethey?Doyouthinkmarketingresearchissignificanttoacompany’ssuccess?Why,orwhynot?SpotDictationBackgroundInformationVideoClipGroupDiscussionBR_spotdictationSpotDictationMostpeoplethinkthatisonlyabouttheand/orpersonalsellingofgoodsandservices.Advertisingandselling,however,arejusttwoofthemanymarketingactivities.Ingeneral,marketingactivitiesareallthosewiththeparticularwantsandneedsofatargetmarketof,andthengoingaboutthosecustomersbetterthanthe.Thisinvolvesdoingmarketoncustomers,analyzingtheirneeds,andthenmakingstrategicdecisionsaboutproduct,pricing,anddistribution.VideoClipGroupDiscussionBackgroundInformationSpotDictationmarketing_______advertising________associated________identifying_______competitors________research_______customers________satisfying_______design_____promotion_______GR_PartDivision..PartDivisionoftheTextThetextcanbedividedintothreeparts:Part1(Paragraphs1-3):Coca-ColaCompanymadeabigmarketingerrorbyreplacingoldCokewithNewCoke.Part2(Paragraphs4-8):Manyanalystsblametheerroronpoormarketingresearch.Part3(Paragraph9):Someobserversregardeditasasmartdecisioninthatitgottwobrandsonthesupermarkets’shelves.PartDivisionoftheTextFurtherUnderstandingGR_FurtherUnderstandingFurtherUnderstanding1.2.Intheblindtests,60percentofconsumerschosethenewCokeovertheold.Whydiditturnouttobeamarketingerror?InwhatsensedidsomeobserversthinkthatCoke’smanagershadmadeasmartdecision?ByfirsttakingawayitsoriginalCokeandthenbringingitbackagain,thecompanygottwobrandsonthesupermarkets’shelves.Therefore,it’sthoughttobeaclevertrickinthestruggleforshelfspace.Questions:Becausetheresearchlookedonlyattasteanddidn’tlookatthetotalproduct:name,history,packaging,andimage.Besides,thecompanyfailedtoconsiderpeople’semotionsaboutCoke.KeyKeyPartDivisionoftheTextFurtherUnderstandingInMay1985,theCoca-ColaCompanymadeabigmarketingerror.Afterninety-ninesuccessfulyears,itthrewawayitsoriginalformulaCoke!InitsplacecameNewCokewithasweeter,smoothertaste.ThecompanyannouncedthenewtastewithmuchadvertisingAtfirst,NewCokesoldwell.Butsalessoonwentflat.Cokebeganreceivingmorethanfifteenhundredphonecallsandmanybagsofmaileachdayfromangryconsumers.AgroupcalledOldColaDrinkersprotestedandthreatenedtostartasuitunlessCoca-Colabroughtbacktheoldformulaormadeitpublic.DR_text1_SASmartMoveoranError—TheStoryoftheNewCokeDR_text2_SInmid-July,afterjusttwomonths,theCoca-ColaCompanybroughtoldCokeback.CalledCokeClassic,itwassoldsidebysidewithNewCokeonsupermarketshelves.ThecompanysaidthatNewCokewouldbeitsmainbrand,butconsumershadadifferentidea.Bytheendof1985,ClassicwasoutsellingNewCokeinsupermarketsbytwotoone.ThusCokeClassicbecamethecompany’smainbrand.WhywasNewCokeintroducedinthefirstplace?Whatwentwrong?Manyanalystsblametheerroronpoormarketingresearch.DR_text3_SIntheearly1980s,thoughCokewasstilltheleadingsoftdrink,itwasslowlylosingmarketsharetoPepsi.Foryears,Pepsihadsuccessfullystartedthe“PepsiChallenge”,andaseriesoftastetestsshowedthatconsumerspreferredthesweetertasteofPepsi.Byearly1985,thoughCokeledintheoverallmarket,Pepsiledinsharesofsupermarketsalesby2percent.This2percentofthebigsoftdrinkmarketmeansmillionsofdollarsinretailsales!Coca-Colahadtodosomethingtostopthis.ThesolutionappearedtobeachangeinCoke’staste.DR_text4_SCoca-Colabeganthelargestnew-productresearchprojectinthecompany’shistory.Itspentovertwoyearsandmillionsofdollarsonresearch.Itconductedabouttwohundredthousandtastetests.Intheblindtests,60percentofconsumerschosethenewCokeovertheold,and52percentchoseitoverPepsi.ResearchseemedtoshowthatNewCokewouldbeawinnerandthecompanyintroduceditwithconfidence.Sowhathappened?DR_text5_SLookingback,Coke’smarketingresearchappearstohavebeentoonarrow.Theresearchl