PhilTake #17 - The Power of Premise, Part 2
Business success or failure is often understood by looking at six critical elements called Morphemes. In the previous post, I introduced Morpheme #1 – Premise: What is the marketplace behavior the business is set up to serve?
A faulty premise damages even the most successful companies. For example, let’s look at a famous case study: Coca-Cola’s 1985 failed New Coke product launch. Pressured by rival Pepsi’s increased market share, the soft drink giant created a new, sweeter recipe. Over 200,000 taste tests indicated consumers preferred the new taste over both Pepsi and Coke’s own legacy product, so Coca-Cola replaced its legendary product with New Coke.
One problem – consumers don’t buy on taste alone. Per Joe Benjamin, “in less than three months, New Coke was pulled off the shelves and old Coke–rebranded as Coca-Cola Classic–was back”.