The most popular soft drink in the world, at least by brand awareness if not sales as well, is making a major change to its marketing strategy in its new marketing campaign:
Two decades after adding the designation, the Coca-Cola Co. is removing the word “Classic” from its prominent location on the flagship cola sold in the U.S., a company spokesman said Friday.
“The reason for being, for classic as a descriptor, has all but disappeared,” spokesman Scott Williamson said.
The “Classic” tagline — right under the script Coca-Cola logo — was added in 1985, when the company introduced a formula that consumers called “New Coke.” New Coke never caught on and was sold sparingly until it was dropped in 2004.
Coke Ads
The reason for introducing the “classic” tagline was obvious: Customers hated “New Coke,” so the company wanted consumers to be sure that the product they were purchasing was the former one. But as the company spokesperson tells MSNBC, fewer young people today remember New Coke, and older consumers are likely no longer worried about buying that particular drink by mistake. So why keep “classic”?
Still, I am skeptical that the change will have a significant effect. As Geoffrey James notes in a blog post, a company can actually decrease profits by focusing on expensive branding strategies when other factors, like sales itself, are more important. But the most important thing for Coke is that people around the world are drinking less and less of the soft drink, and the company has had to think of creative ways to respond.
If I were the chief marketing officer of Coca-Cola, I would not focus on removing the “classic” tagline or printing misleading claims in advertisements. It undoubtedly costs money — labor and production costs — to change label designs and remove the tagline altogether, and revenue will not increase enough — if at all — to offset the added expenses. (Besides, in my head, the word “classic” still has positive connotations. I can still remember a jingle from my youth: “Coca-Cola CLASSIC… Can’t beat the REAL THING!” I like hearing the word.) Moreover, making disingenous claims harms the brand image in the minds of consumers who are increasingly skeptical of advertising in general.
Coke Nutrition Facts
If I were the CMO with a marketing degree, I would focus on a segmentation strategy. Products like Coca-Cola Zero target consumers who had been turned off my the level of high-fructose corn syrup in the beverage. Off the top of my head, I think I heard that the company is also developing sports drinks to combat brands like Gatorade. Coca-Cola has also developed a product line with zero carbohydrates. The company needs to develop additional products to target specific, diverse populations rather than needlessly remove a word from its labels and make claims whose truthfulness is questionable.
Earlier: Coke Nutritional-Facts and the Coke Marketing-Mix

