New Coke: One Of The Biggest Marketing Failures Of All Time

In April 1985, The Coca-Cola company took a huge business risk by changing the 99 year-old formula, turning the beloved Coca-Cola into New Coke. Met with fierce opposition, New Coke has been deemed one of the biggest marketing blunders in history.

As a result of New Coke, consumers began purchases large amounts of the original formula and hoarding it for later consumption. Consumers were afraid that their beloved cola soft drink was gone forever and that they needed to ration what was left. New Coke was also met with protests by thousands across the country. The Coca-Cola customer call center was flooded with more than 1,500 New Coke complaints a day. The Coca-Cola company clearly misunderstood how consumers would receive the reformulated coke.




After a few short months, Coca-Cola restored Coca-Cola Classic in July 1985. Coca-Cola Classic was sold alongside New Coke. Consumers rejoiced at the reappearance of their original coke, and rallied behind the new Coca-Cola Classic Red, White, and You Campaign. New Coke eventually was renamed Coke II and then was discontinued.

All the research and data Coca-Cola collected indicated that New Coke would be a success and was something consumers wanted. The new formula was preferred in taste tests of more than 200,000 consumers. The company had also been losing its lead over its competitors for the past 15 years. And the cola category itself was becoming lethargic. Coca-Cola saw New Coke as a way to re-energize the brand and the entire cola category of soft drinks for modern consumers. How could Coca-Cola not seen this disaster coming?

Data doesn't tell the full story. Coca-Cola's marketing blunder is due to a lack of user empathy. Coca-Cola failed to conduct research to understand the consumer's affinity and loyalty toward the classic brand.  The company's research focused on consumer's reactions to product features instead of the concept. The research also didn't consider the power brand loyalty can play in new product adoption. Companies need to understand the whole consumer in order to create valuable products.

The reappearance of classic Coke helped Coca-Cola reconnect with consumers and shift the company's focus on understanding its users. To prove that it learned its lesson, The Coca-Cola Company described this blunder as an example of the companies commitment to creating value for its consumers even though it's idea was wrong. Truthfully this sounds like the company is just trying to say they didn't completely fail, when in fact they did.

This event clearly was a wake up call to Coca-Cola. The company has kept its original formula and has turned itself into a global brand, whose lifestyle and values is easily communicated across cultures. There is value in understanding the consumers perspective. It just might save a company from becoming one of the biggest marketing failures of all time.

Why Wait For Coffee?

Today I walked into the campus library at 10 am. While I searched for a spot to study, I noticed that the coffee line was particularly long this morning. Then two hours later I realized the coffee line hadn't changed except for the people in the line. Maybe its the cold weather outside, sleep deprivation, or a desire to treat one self, but students today are all needing coffee.

This experience got me thinking about how long people wait in lines for coffee and why they are willing to wait. A New York Times article stated, "Americans spend roughly 37 billion hours each year waiting in line." Based on what I've seen today, I wouldn't be surprised if a large portion of that time was spent in coffee lines. Fifty-percent of Americans drink coffee everyday, which is equivalent to 150 million daily drinkers. The average American drinks 3.2 cups of coffee a day. This statistic implies that Americans are addicted to coffee. The United States as a whole consumes 400 million cups of coffee a day, making it the leading consumer of coffee in the world. Getting coffee has now become a daily ritual.

The longest coffee lines that I've encountered are at Starbucks. I recently had to wait roughly 15 minutes to order my chai tea latte, then another 7 minutes for my drink to be made. Starbucks is well loved by consumers and often has a line because of this. According to a New York Times article, the experience of waiting in line is only partly defined by the actual time in line. People overestimate their wait time by 36%. So when I said I waited in a Starbucks line for 15 minutes, it was probably actually only 10 minutes. The consumers conception of wait time is influenced by the amount of occupied time and the amount of unoccupied time. Occupied time feels shorter than unoccupied time. If consumers are entertainment or distracted while waiting in the line, the whole experience feels shorter. Since consumers dislike waiting in lines, they will seek ways to occupy themselves such as participating in impulse buying. Starbucks lines its stores with decorated mugs, bags of coffee beans, small snacks, and other knick knacks to entice consumers to occupy their time waiting by selecting impulse buy items. I know I like to look at all the different mugs Starbucks strategically places next to the line.

As I finish this blog post the coffee line in the library has yet to shorten. Students are stilled packed like cattle into the roped off coffee section of the library. Luckily they have a whole display of sweet treats to occupy their thoughts before they reach the counter.

Black Friday: The Controversy Of The Biggest Shopping Day Of The Year

Black Friday is the most anticipated shopping day of the year. What once was a fun tradition has now become a stressful event that sparks bouts of violence. Three shootings occurred in different shopping areas across the country during Black Friday 2016. Of these shootings one man died and several others were injured. At least one of the shootings was caused by a parking spot dispute. Gun violence over a single parking spot seems a bit extreme for an event that is supposed to be fun. The following quote reflects the concerns of one shopper that was present at the shooting in New Jersey this year.
"It's sad. We've been doing this, me and the girls, for probably about 10 years, just for the fun of going out -- a girls' night and trying to get some special sales and it's getting scary now."

As of 2006 there have been 8 deaths and 98 injuries throughout the US on Black Friday. Black Friday shoppers are becoming increasingly stressed and violent when things do not go their way. Fights over discounted products and parking spaces have become a part of the Black Friday Tradition. In 2008, 2,000 shoppers were so focused on fulfilling their own material desires that they trampled a 34 year-old Walmart employee in New York. Shoppers showed zero concern for the injured man and ignored the police's attempt to assist him. The level of selfishness that is displayed on Black Friday exemplifies consumers' desire to receive discounts above all else. Incidents involving handguns, knives, and pepper spray are now the norm for Black Friday. Personally, this animalistic behavior makes me very disappointed in consumers, especially since this behavior occurs the day after Thanksgiving. In less than 24 hours, Black Friday shoppers have forgotten all the things they said they were thankful for the night before.

Another controversy surrounding Black Friday is focused on the treatment of the employees that work Black Friday. Black Friday staff have to comply with unreasonable demands, work long shifts, risk their health and safety to manage crowds, and sell products that were specifically made for Black Friday that have lower quality specifications. Many employees dread working Black Friday because of the long hours and crowds. Is it really fair to make these employees endure terrible work conditions just so companies can receive a spike in revenue this one day of the year?

There are some companies that refuse to participate in the stressful Black Friday sales. Instead these companies prefer to protect its employees and customers from mindless consumerism. REI for example is closed on Black Friday, giving its employees a paid day off. This act shows that REI is a company that doesn't value profits more than its employees. I greatly admire REI for its Black Friday strategy. Just the act of closing its does may cause some shoppers to stop and think about the reasons why a store isn't open on Black Friday. Maybe this is our glimmer of hope. It's up to companies like REI to help consumers remember what's important in life and break their Black Friday addictions.

Black Friday: Why Consumers Go Coo Coo For Discounts

The Friday after Thanksgiving is the day of the consumer or Black Friday. On this day discount craving consumers wait in lines as early as 3:00 am and pack themselves into malls like cattle. This mass day of consumerism has been a tradition since 1932. Originally, Black Friday would start at 6:00 am, but larger stores such as Best Buy, Kohl's, and Macy's have started earlier and earlier each year. Now some Black Friday deals even start at 5:00 pm on Thanksgiving day, challenging the essence of Black Friday. 

In 2015 74.2 million United States consumers participated in Black Friday, spending $625.1 billion. Thanksgiving is a holiday that encourages people to reflect on what they are thankful for in life. You would think this self reflection would inspire gratitude and content with one's life. Instead of feeling content the day after Thanksgiving, millions of Americans storm shopping centers consuming more and more products. What is it about Black Friday that turns Americans into enthusiast shoppers this one day a year? 

dealnews.com offers eight explanations for why consumers go crazy for shopping on this one day a year.

1. Getting a Deal Feels Good. Discounts feel like a reward for all the planning, waiting, and patience needed to shop on Black Friday. There is a sense of satisfaction when receiving a discount. Consumers crave this satisfaction often on Black Friday.

2. Limited Time Sales Create A Sense of Urgency

Limited quantities and limited time encourages consumers to act fast if they want the satisfaction the discount provides. It's this sense of urgency that pulls many Americans out of bed at 3:00 am to get in line outside their favorite retailer. 

3. Doorbusters & Limited Items Make One Feel Superior

Receiving a doorbuster or limited item that only a few shoppers receive makes one feel special and that their efforts are validated. Consumers who receive the doorbuster also feel superior to other shoppers who showed up to late. It's a prize for being the most dedicated and sleep deprived. 

4. Buying Something Justifies The Time Commitment

For many Americans, Black Friday is a full day event. So much time goes into planning and waiting that consumers feel like they have to buy something no matter what. By purchasing an item, consumers feel that the time they invested into this endeavor is not validated. Its also this feeling of validation that encourages consumers to purchase more than they originally set out to buy. 

5. Deal Teasers and Previews Build Anticipation

Black Friday deals are advertised weeks before the actual day. The hype around Black Friday turns this weekday into an event that is highly anticipated each year.

6. Black Friday Is A Tradition

This day of consumerism marks the beginning of the Christmas shopping season and has become a tradition for many families. Families turn Black Friday into a memorable family activity, rather than a free for all shopping day. 

7. Planning Ahead Increases Expectations

The shoppers who put the most time into planning their shopping strategy tend to have high expectations for the day. High expectations bring shoppers out on Black Friday, but the ones who have invested the most time into planning tend be the most stressed out and sensitive when things get in the way of their shopping plan.

8. Good Deals Even Appeal To Shopping Humbugs 

The discounts, anticipation, and sense of urgency around Black Friday even bring out those individuals who dislike shopping in general. This contributes to the large amount of people who participate in Black Friday.

Black Friday is a day that celebrates consumerism. Americans love a good deal and are willing to put up with early hours, long lines, and crowds of people to get them. Black Friday is more than one big shopping day, it's a day full of tradition, satisfaction, and validating oneself. 

The Problem With Nutrition Labels

Why does it feel like you need a Ph.D to be able to understand today's nutrition labels?

In a previous blogpost entitled, Candy Corn: Please Consume Responsibly, I discussed who was responsible for the health of society. On one side the consumer is responsible for their own health because they have free will to choose what they put into their bodies. And on the other side, food manufacturing companies have an obligation to create food that will increase consumers' well-being or at least effectively communicate what is in its products. Here lies the issue with nutrition labels. Food companies use nutrition labels to communicate product ingredients, so consumers can make a seemingly educated decision to consume a product or not. Unfortunately nutrition labels are confusing to the average consumer. Complex names and measurements hide the truth behind the product's ingredients and nutritional content.

There are several elements to nutrition labels that lead to confusion, most notably the number of calories, serving size, and ingredients. Many nutrition labels list the number of calories in a serving, as well as, list the calories from fat. Aren't all calories the same? Does this imply that fat calories are worse for you?  What does this really mean for my health? A measurement like this leads consumers to question its meaning. The nutrition label does a poor job of describing why fat calories are separate from total calories. Another issue in understanding the calories measurement, is knowing if it is considered small, average, or large. Most nutrition labels indicate that calories are based on a 2,000 calorie diet. Since many people have different caloric needs it is difficult to define if the number of calories in a product is acceptable for one's dietary needs.

Serving size is also a misleading component of nutrition labels. Often times the serving size is measured in such a way that the consumer can't even conceptualize what it means in terms of how much to eat of a product, especially since products come in bigger quantities than they are supposed to consume. I found four food products in my house that all have misleading serving sizes. Let's take a look at each one and determine how it is misleading.

1. Spaghetti Noodles

Spaghetti noodles come uncooked and in a relatively small box. What I have always found confusing about spaghetti noodles is that when you cook a small amount of dried noodles and it turns into a massive helping of cooked noodles. The serving size on the package is 2 ounces. Let me just pull out the scale I keep in the kitchen to measure that out. Oh wait! I don't have a scale to measure food. How am I supposed to know what 2 ounces of dried noodles is supposed to look like? Let's say I make spaghetti to feed my whole household. How am I going to know what 2 ounces of dried noodles look like when they are fully cooked? The real issue here is that the serving size for spaghetti is presented in weight of dried noodles. People don't eat uncooked spaghetti or typically have scales to weigh out food in their kitchens.


2. Doritos Nacho Cheese Chips
I believe that very few people actually read the nutrition labels on chip bags. When people consume chips they will eat handful after handful until they are satisfied. The serving size for Doritos is only 11 chips. That seems like too few if Doritos are supposed to be one's afternoon snack. The good thing about this serving size is that it is measured in chips not ounces, so it is easier for the consumer to conceptualize. The issue is that it is so small that very few people will only eat 11 chips when they have access to the whole bag. Would it be better for consumers if snack size Dorito chip bags that only contain 11 chips were sold?




3. Popcorn

You would think one serving of popcorn would be the whole pre-measured bag that it is microwaved in. Wrong, the serving size of popcorn is 3 tablespoons of uncooked kernels. This is especially difficult for consumers to conceptualize because they never see the uncooked kernels because they are hidden in the microwaveable bag. How is the consumer supposed to know how much 3 tablespoons of uncooked kernels looks like when cooked? Again, consumers cannot actually gauge what healthy consumption of popcorn is.



4. Poptarts
Poptarts are my own personal weakness. The worst part is that I know they are pretty bad for me, but that doesn't stop me from enjoying a strawberry Poptart from time to time. The serving size for Poptarts is 1 pastry. Since Poptarts are consumed as whole pastries this serving size is pretty easy to understand. The main issue with this serving size is that Poptarts are wrapped in packages of 2. Is a consumer really supposed to open a package and only eat one while the other becomes stale from sitting in an open package? If Kellogg really wanted to help consumers they would package each Poptart individually, eliminating the temptation to eat both in one sitting.

How are people supposed to make educated food product decisions when they don't understand what the calories measurements or serving sizes mean for their health? Misleading calorie measurements and serving sizes often lead to over consumption of products, thereby damaging the health of consumers.

Another big source of confusion for consumers is product ingredients. Using hard to pronounce and obscure names for ingredients, food companies have been able to hide what is in products from unknowing consumers. Here is the ingredient list for my beloved strawberry Poptarts. Words such as enriched flour, niacin, riboflavin, folic acid, soy lecithin, and Red 40 provide me with no real insight into what makes up a Poptart. These ingredients are also common in other food products. Let's take a look at what they really are.

Enriched flour is confusing because the consumer might not understand why flour needs to be enriched and what exactly it has been enriched with. A quick Google search revealed that companies enrich flour to restore it with nutrients that were lost while it was processed. Flour is often enriched with iron and B vitamins. Three B vitamins that flour is enriched with are niacin, riboflavin, and folic acid. These 3 B vitamins have intimidating names that make them sound like they are harmful to consumer health. In reality, these B vitamins promote good health in consumers by aiding in the creation of new cells within the body.

Soy lecithin is liquid extracted from cottonseed, marine sources, milk, rapeseed, soybeans, and sunflower to help mix oils within food products.  Though approved by the FDA, soy lecithin has been known to cause side effects such as bloating, diarrhea, mild skin rashes, nausea, and stomach pain. That doesn't sound like an ingredient that I want hidden in food products.

Red 40 is the most common artificial food coloring used today. Its actual name is Allura Red, making it sound almost seductive. This FDA certified food coloring comes from petroleum distillates or coal tar. According to the Center for Science in the Public Interest, Red 40 can cause allergic reactions, hyperactivity in children, and immune system tumors in mice. Red 40 also contains p-Cresidine, which is reasonably anticipated to be a human carcinogen. This seems like a pretty nasty chemical to be putting into our food.

Consumers need to be educated on what they are putting into their bodies. Nutrition labels are a great first step toward informing consumers, yet there is room for improvement. All nutrition measurements and ingredients need to be easier for consumers to understand. If we want consumers to be more responsible for their own health, then food companies need to be transparent about what is in the food product offerings.

A Little Nudge Never Hurt

American's pride themselves on their freedom to choose. In society, there is a false assumption that people will choose what is best for them. In reality people are fickle and need nudging in order to make the best choice. In Nudge by economists Richard Thaler and Cass Sunstein, a nudge is defined as an aspect of choice that alter's a person's behavior in a particular way without changing the choice at all. This approach to influencing decisions is considered Libertarian Paternalism, which means nudging the user to make the best choice for his/her well being without restricting freedom of choice. This can occur through choice architecture, where the designer incorporates nudges into the decision making process.

The following picture is an example of a nudge built into choice architecture. The choice architecture is the order of the food available and the nudge is making the fresh fruit available to the consumer before the donuts. This helps the consumer make a choice that will be better for his well-being without limiting his freedom to choose.

Nudges are everywhere; some are intentional and some are unintentional. After recently reading Nudge, I have started to notice the nudges designed into Montana State University's (MSU) campus and student involvement. The two that particularly come to mind are sidewalks and Champ Change.

1. Sidewalks

Montana State University has a complex spider web of sidewalks that lead students and faculty across campus. The sidewalks are a nudge to encourage students to walk on the concrete instead of the grass. Sidewalks can be thought as a social norm type of nudge. People tend to use sidewalks whenever they are walking to a destination in a town or city.

Though this may seem like a great nudge it isn't always effective. Students in particular don't always care about walking on sidewalks. We tend to look for the quickest path and take it, even if it means walking across the grass. As you can see in the photo most students are following the nudge of the sidewalks, but some in the far right of the photo are cutting across the grass.

Montana State University may have needed more thoughtfulness when designing its sidewalks. Students wouldn't need to cut across the grass if sidewalks that followed the most direct path to common buildings were established from the start. What Montana State University did do well, was line certain sidewalks with tall shrubbery to discourage students from cutting across the grass in certain areas. I know one day I was planning on taking my usual route to Jabs Hall that cuts across the grass only to have found a large bush (another nudge) planted in my way. Now, I have to use the sidewalk just like everyone else.


1. Champ Change

Champ Change is a nudge used by Montana State University to encourage student involvement. A student can receive Champ Change (points) by going to the library, going to the gym, attending MSU sponsored events, etc. Then the students my use their Champ Change in an online auction to win prizes. Champ Change is an incentive type nudge for it motivates students to discover many different aspects of Montana State University for the chance to redeem points for prizes.

Champ Change is a moderately effective nudge. Not very many students participate in the program because they forget to swipe their Cat Card to get the points or they simply can't find the card scanner. The incentive of prizes is particularly attractive to Freshman, who want to explore the MSU campus and now receive a reward for doing so. Champ Change is great for new students because it gives them a reason to get in the habit of attending social events, studying, and exercising while at MSU. Champ Change is a nudge that enhances the well-being of students and the college experience.


Nudges are everywhere and many often go unnoticed. Without limiting options, nudges encourage better health, wealth, and well-being of consumers. I believe nudges are an excellent way to motivate change without strict rules or mandates. A little nudge here and there wouldn't hurt.