Coca-Cola Company introduced New Coke largely because of Pepsis success in taste tests head to head with

Coca-Cola Company introduced New Coke largely because of Pepsi’s success in taste tests head to head with Coke Classic.

a. Consider the following hypothetical information:

(1) In blind taste tests, 58 percent of subjects preferred Pepsi to Coke Classic;

(2) In similar tests, 58 percent of subjects preferred the taste of New Coke to Pepsi. From these findings, what can Coca-Cola’s management conclude about consumers’ preferences between Coke Classic and New Coke?

b. Consider the following preference rankings of three different types of consumers A, B, and C:

As the table shows, 42 percent of consumers are “type A,” whose top preference is Pepsi, followed by Coke Classic and New Coke. Are these preferences consistent with the information in part (a)? What do you predict would be the result of a blind taste test between Coke Classic and New Coke?
c. From the information in part (b), what brand strategy would you recommend to Coca-Cola’s management? What additional information about consumer preferences might beuseful?

Transcribed Image Text:

A (42%) B (42%) C (16%) 90) Most preferred Pepsi Second choice ok Classic N Coke Least preferred New Coke Coke Classic Coke New Pepsi Coke Classic