In 1985, Coca-Cola’s leadership concluded the soft drink needed to change. Sales of nemesis Pepsi were on the rise and thousands of blind taste tests suggested consumers preferred something sweeter. Their answer: New Coke.
So, on April 23 of that year, they unveiled an “improved” formula, giving consumers a new taste, new logo, and a massive new product rollout. Welcome to New Coke. You can imagine the financial investment made.
Almost immediately, consumers revolted. Recorded consumer sentiment:
“Changing Coke is like breaking the American dream, like not selling hot dogs at a ball game.”
“My dearest Coke: You have betrayed me.”
“Millions of dollars worth of advertising cannot overcome years of conditioning. Or in my case, generations. The old Coke is in the blood.”
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That’s just a taste (so to speak) of the feedback Coke received. The company had wanted to re-energize the brand. They clearly energized something!
The company fielded up to 8,000 calls a day from dissatisfied customers and received over 40,000 complaint letters. Imagine if social media had existed then. Sales volume plummeted sending rival Pepsi sales through the roof. In today's dollars, this was roughly a $100M mistake.
Clearly, Coca-Cola got the message. A quick 79 days after New Coke’s launch, the original formula was back in market, rebranded as Coca-Cola Classic. Sales soared beyond previous highs. Consumers didn’t just return; they came back with enthusiasm and loyalty. Within a year, Coca-Cola was outperforming Pepsi more decisively than before. The Coca-Cola brand had emerged stronger than ever.
Why bring this up now?
Because the US is experiencing a New Coke moment all its own. You feel it, too, right?
Read on…
In 1985, no one was asking for a new Coca-Cola formula. Yet, senior leaders and the full power of the Coke marketing team thought they knew better.
So, here we are today, experiencing US domestic and international policies that feel significantly less sweet than most of us have a taste for. Not just Americans, but globally, the latest US brand revision seems to have missed the mark.
To borrow from one aghast New Coke drinker: “Dearest US government: You have betrayed us.” And by “us,” we mean everyone, as in US citizens and global citizens alike.
We don’t need to tell you that higher education is in a high-stakes moment along with everyone else. It’s abundantly clear. Federal and state policy shifts – new DEI limitations, fluctuating visa rules, attacks on free speech, and pulled research funding – are reshaping who colleges admit, what they can teach, and how they govern themselves. Campuses are under so much pressure.
Today, what has truly gone wrong with the new US brand is on display in Minneapolis in ways few of us could have imagined.
The freedoms and practices that were considered basic US DNA, the formula that made the US “American,” has been changed without our input.
Still, we believe there is reason for optimism.
Just as Coca-Cola rebounded stronger after listening to its consumers, institutions that maintain a sharp focus on their mission, stay true to their values, and creatively adapt will be in a stronger position to succeed when Classic America returns.
We recently shared perspective on this concept during an AIRC presentation with Pieter Vermeulen, University of North Texas and Abhijit Zaveri, Career Mosaic. See this link for Intead’s slides from AIRC for deeper enrollment insights.
We firmly believe that US higher ed and the US brand overall, like Coca-Cola, has resilience in its DNA. We will grow stronger and smarter if we stay the course. Just as Coke saw sales and customer loyalty come roaring back, the US has potential ahead.
Take steps to ensure your campus colleagues, leadership, and the broader US higher ed ecosystem not only survive the current chaos but also emerge better on the other side. You’ll see the opportunities to speak out in the days ahead. Use them. As your peers seek your opinion on all things international, be prepared with your department road show.
Should doubt creep in, keep in mind the disgruntled Coca-Cola drinker who said: “Millions of dollars worth of advertising cannot overcome years of conditioning. Or in my case, generations. The old Coke is in the blood.”
Likewise, generations of domestic and international students have dreamed of earning a US degree and an education experience. It’s ingrained. We keep going. It's in our DNA.
