The latest results of a popular magazine have been shocking for Coke. As per the results, Coke has lost its position as the most valuable brand to Apple. In fact it is not even at second position. One might wonder why did this happen. Coke had retained this position for quite some time they how did this suddenly happened?
In this article I would like to present my views on what might have gone wrong for Coke. And of course what right for Apple. Before that I would just like to add that I present these views as a customer who lists both these brands among his favorites and these results have been as shocking to him as to Coke.
Coke had been its consumer’s favorite brand for so long. In fact it is so valued by its customers that when Coke tried to change it image to New Coke, there was a public outrage. The people were so upset with this decision and they could not fathom why did Coke change to New Coke when they wanted Coke. This dissent among the public was visible from the fact that New Coke’s sales fell within months and it lost it numerouno position to Diet Coke. On Coke’s part, they were just trying to change with changing times as there is little room for innovation in their business. As a result of the upsurge by the public they had to reintroduce the Classic Coke into the market.
Apple on the other hand has always been a consumer’s delight. The brand lives of innovation. Though there maybe competitors in market that produce the same product but Apple’s image in a consumer’s mind is such that they are the innovators and their best are the best in quality. So the brand has consistently shown innovation and maintained its quality over the years. Slowly and slowly it has climbed the ladder of brands that customer value the most.
The X, Y generation people, in my opinion, have two problems among many other that are relevant here. One is their ever increasing dependence on technology and second is their deteriorating health conditions. As a result the one who innovates in technology and provides better quality to its customers will be valued more. Similarly the one who is worsening the second position will loose its charm over time no matter how much it is valued. But that time is still very far away.
All we can do now is just wait and watch what Coke’s response would be to this shock!