As Pepsi steadily gained market share in the early 1980s, Coca-Cola ran the same test and found the same result—people simply preferred Pepsi when tasting the two side by side. So, after conducting extensive market research, Coca-Cola’s solution was to create a sweeter version of its famous cola—New Coke. In taste tests, people preferred the new formula of Coke to both the regular Coke formula and to Pepsi.
Despite this success in tests, when the company brought New Coke to market, customers revolted. New Coke turned out to be one of the biggest blunders in marketing history. Within months, Coke returned its original formula—branded as “Coca-Cola Classic”—to the shelves.