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Coke Are It

TAKING NOTE

By John Rosenthal

A HEADLINE ATOP this week's Newsweek magazine advertises an article describing "How Coke Blundered."

But the article itself is a key indication of how Coke did not blunder. In fact, some people are now saying that Coke's "blunder" was intentional.

After all, who would be stupid enough to put out a sweeter Coke after just finishing an ad campaign that said Coke was less sweet than Pepsi? And who would be stupid enough to change Coke one year before its 100th anniversary, thereby passing up an unprecedented advertising blitz for Coke's centennial? And who would be dumb enough to switch to a formula that only six out of 10 preferred to an American tradition?

Coke would. First, it got free publicity from the networks, weekly magazines, and almost every newspaper; twice.

Second, a good deal of money was made off people who went out and bought a Coke when they wouldn't have, just to try the new formula. Then money was made off people who hoarded old Coke because they couldn't bear to see it go.

Lastly, think of what it did to Pepsi's advertising budget; first forcing the Coke competitor to abandon its highly succesful "new generation" campaign featuring Michael Jackson and Lionel Richie to rush out a new ad proclaiming the death of Coke, and now forcing Pepsi to cancel such advertising with the return of Classic Coke.

There are other signs, as well, that indicate that the move was done on, purpose. One of the most obvious is all the talk about grocery stores not being able to stock both versions of Coke. The fact is that most people--even Gay Mullins, the Seattle man who formed Old Cola Drinkers of America--can't tell the difference between old Coke, new Coke, Pepsi, and motor oil. But if Coke can get twice the exposure on grocery store shelves (Pepsi's stronghold is grocery stores; Coke does better in fountains), the Atlanta-based bottling company is likely to sell twice as much as any other soft drink.

Most of all, Coke has got everybody talking about its product, either as an American symbol, an American tradition, or an American institution. And its got America drinking it, too. As Coke's rising stock will attest, never has a "blunder" been so successful.

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