http://stream.publicbroadcasting.net/production/mp3/wium/local-wium-900645.mp3
Macomb, IL – Rich Egger's guest is Michael Connell, who is a professor of political economy and commerce at Monmouth College. They talk about the 25-year anniversary of the Coca Cola company's "New Coke" blunder.
Just about every semester, Connell teaches students in his Introduction To Business class about the blunder. Connell says New Coke was sweeter than original Coke, which had been losing blind taste tests to competitor Pepsi. New Coke was created to win those challenges, but he says the company failed to recognize how loyal customers were to the original formula Coke.
Connell says once Coca Cola recognized its mistake, it reintroduced the original formula Coke. He says sales of Coke became stronger than ever and no executives lost their jobs as a result of the New Coke blunder.
The soft drink industry has changed in the years since the introduction of New Coke. Connell says Coke and Pepsi are increasing their marketing efforts overseas because they're losing US market share to other drinks.