Coke and Burger King
Coca Cola in an effort to boost its revenues persuaded Burger King to run a campaign for its Frozen Coke. They were manipulating the market to have Burger King to run this campaign. Before taking on this initiative, Burger King wanted to do a test run. Richmond Va. was chosen as the area to run this trial. Coupons were given for a free Frozen Coke when a value meal was purchased. This method however proved to be a little slower than was expected.
Only 700 meals were added with the coupons. Nearly 100000 meals were originally sold. As a result of this slow performance f the promotion executives resorted to pumping cash in to the promotion, offering cash to non-profit organizations in the area to enhance sales. This was in an effort to boost sales; these numbers were not true numbers. Coca Cola was eventually exposed for their unethical actions deceit and lies and those involved were punished. What Did Coke go wrong?
Coca Cola when wrong when they pumped personal money into the campaign to boost sales and to enhance the numbers. They manipulated the market result hence produced misleading numbers. I think burger King should have conducted it own market research. Coke did not research the market well either. Choosing Richmond VA. was not the ideal market for this campaign to run; a more conducive area should have been chosen Refute It goes without saying the companies are always under pressure to have favorable numbers’ but at what cost.
Having attractive numbers as a company is an important thing; however altering or falsifying numbers to so favorable result in unethical and these actions only hurt the companies and their employees in the long run as see in this case. Coke was responsible for conducting a ,market research which they did not and not only did this affect Coca Cola but it also affected Burger King as they invest big buck into this campaign. Coke violated the trust that Burger King placed in them and it ended up hurting both companies.