CARA PEMIMPIN BISNIS COCA COLA MENGHADAPI KRISIS | TIPS MENYELESAIKAN MASALAH | INSIGHT INOVASI

Summary

In 1985, Coca-Cola's bold launch of New Coke, a sweeter version of its classic drink, resulted in a massive backlash from loyal customers. Despite initial confidence based on taste tests, the company faced consumer protests, lawsuits, and a plunge in stock prices. In response, Coca-Cola used the After Action Review (AAR) process, developed by the US Army, to assess the failure. The review revealed that emotional and social factors, not just taste, influenced purchasing decisions. By reintroducing the original formula, Coca-Cola regained consumer trust and emerged resilient, demonstrating the power of learning from failure and adapting quickly.

Takeaways

• 😀 Effective leadership means responding quickly to crises and taking immediate action when things go wrong.
• 😀 The After Action Review (AAR) method is a crucial tool for evaluating decisions and understanding why outcomes differ from expectations.
• 😀 Acknowledging mistakes openly is a vital part of rebuilding trust with customers and stakeholders.
• 😀 Resilience is key in leadership—Coca-Cola’s ability to bounce back after the New Coke failure shows how organizations can recover from setbacks.
• 😀 Emotional factors play a significant role in consumer behavior, and understanding these factors is essential for innovation and product decisions.
• 😀 Quick adaptation and decision-making are essential when faced with public backlash or failure.
• 😀 Market research should consider not just functional aspects (like taste), but also emotional and social factors that drive consumer choices.
• 😀 Leaders can learn from their failures by adopting a methodical review process, which helps them make better decisions in the future.
• 😀 Being open about mistakes and correcting them swiftly can prevent long-term damage to a brand’s reputation.
• 😀 Continuous evaluation and review (both before and after actions) lead to better decision-making and long-term success.

Q & A

What was the significant blunder that Coca-Cola made in 1985?

In 1985, Coca-Cola introduced 'New Coke,' a reformulated version of their classic drink, which was not well received by their customers. The decision to replace the original Coca-Cola was based on taste tests but ignored emotional and long-term consumption factors.

Why did Coca-Cola executives believe New Coke would succeed?

Coca-Cola executives were confident in New Coke because it was based on over 200,000 blind taste tests that showed more than half of the participants preferred its taste over the original Coca-Cola and even Pepsi.

How did Coca-Cola's customers react to New Coke?

Coca-Cola's customers were outraged by the introduction of New Coke. They flooded Coca-Cola's customer service with thousands of complaints, and some even filed lawsuits to bring back the original recipe.

What method did Coca-Cola use to evaluate the failure of New Coke?

Coca-Cola used the 'After Action Review' method, a structured process for evaluating the difference between expected and actual outcomes. This method helped them understand what went wrong and how to address the issues.

What key insights did Coca-Cola's leadership gain from the After Action Review?

Coca-Cola's leadership realized that taste was not the only factor influencing consumer decisions; emotional connections to the brand and long-term consumption habits were also crucial.

How did Coca-Cola respond after recognizing the failure of New Coke?

After acknowledging the failure, Coca-Cola publicly apologized and reintroduced the original formula, which quickly regained popularity and restored the company's position in the market.

What is the significance of the 'After Action Review' in organizational learning?

The 'After Action Review' is a crucial tool for organizations to assess their actions, learn from both successes and failures, and make necessary adjustments to improve performance in future endeavors.

What role did emotional and social factors play in Coca-Cola's New Coke failure?

Coca-Cola underestimated the emotional attachment and loyalty customers had to the original formula. The new taste, although preferred in short-term tests, failed to resonate with the long-term emotional bond customers had with Coca-Cola.

How did Coca-Cola's handling of the New Coke failure demonstrate leadership resilience?

Despite the failure, Coca-Cola's leadership demonstrated resilience by openly acknowledging their mistake, taking swift corrective actions, and regaining public trust by reintroducing the classic formula.

What can other leaders learn from Coca-Cola's response to the New Coke debacle?

Leaders can learn the importance of being open to feedback, admitting mistakes, and taking quick, transparent actions to correct errors. They can also learn that customer loyalty often goes beyond functional features like taste.