What exactly was the "New Coke" incident, and why did it fail?

This is quite an interesting story, a classic blunder in business history.

In short, in 1985, The Coca-Cola Company decided to change its classic formula, which had been sold for nearly 100 years, and launched a new flavored cola called "New Coke."

Why did they do this?

Mainly, they were pressured by their old rival, Pepsi-Cola. At that time, Pepsi-Cola launched an activity called the "Pepsi Challenge," where passers-by were blindfolded and asked to taste two colas. Many people felt that Pepsi-Cola tasted better. Coca-Cola's own internal market research and blind tests also found similar results: people seemed to prefer a slightly sweeter taste, which was precisely Pepsi-Cola's characteristic.

Coca-Cola executives panicked, feeling that their dominant position was at risk and that they had to change. So, they spent a lot of money developing a new, sweeter, and smoother formula. In internal tests, this new formula even beat both the traditional Coke and Pepsi-Cola. They thought they had it made, so they confidently launched New Coke to the market and discontinued the old formula.

What was the result? A complete disaster.

As soon as New Coke was launched, it was met with overwhelming opposition from the American public. The company's complaint lines were jammed, people wrote letters of protest everywhere, and some even marched in the streets, demanding the return of the original Coke. Many people began frantically hoarding the remaining old-version Coke on the market, moving cases of it into their homes.

So why did it fail so miserably?

1. Underestimated the emotional connection: When Coca-Cola conducted market research, they only asked people "which tastes better," but forgot to ask "how do you feel about Coca-Cola?" For many Americans, Coca-Cola was not just a beverage; it was a cultural symbol, a childhood memory, a companion for watching sports, and a part of the American spirit. Suddenly changing it was like someone altering your family's heirloom recipe; it was emotionally unacceptable. People were drinking not just the taste, but also a habit and a sentiment.

2. Misleading blind tests: Taking a small sip and drinking a whole can are two different things. In a blind test, a sweeter, more impactful taste might surprise you at first sip. But if you had to drink a whole bottle, many people would still prefer the more balanced, refreshing taste of the original. New Coke was too sweet and easily became cloying.

3. Rebellious psychology: When Coca-Cola announced the discontinuation of old Coke, people felt their right to choose was taken away. Something that was readily available was suddenly no longer sold, and they were forced to accept a "better" substitute. This created a strong rebellious psychology among consumers. "Whether I like it or not is my business, but you can't decide for me."

Finally, Coca-Cola, unable to withstand the immense public pressure, announced the resumption of the old formula's production less than three months (79 days) after New Coke's launch, renaming it "Coca-Cola Classic." The news was met with nationwide jubilation, like a holiday.

Interestingly, this huge failure ultimately turned into an accidental success. After all the commotion, people realized how much they "loved" Coca-Cola Classic. Sales of the classic Coke surged after its return, further solidifying its dominant market position. So, some people have joked ever since that the whole thing was a "self-inflicted wound" orchestrated by Coca-Cola, the greatest marketing case in history. Of course, Coca-Cola officially denies it vehemently.