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To: Francis Chow who wrote (58593)6/25/1998 6:26:00 PM
From: Ron Mayer  Read Replies (2) | Respond to of 186894
 
Interesting Celeron marketing technique -- Intel and Coca Cola

Francis wrote "Sort of like New Coke - which ended up making people buy a lot more Classic Coke".

The parallels are amazing; and it looks like an extremely effective marketing technique.

COKE --- Coca Cola had a great product, The Original Coke, and baffled almost everyone when they created New Coke. Some people claimed New Coke was like Pepsi; but even more so. It seemed almost like a parody of their competition.
People hated it. A while later, after everyone forgot about The Original Coke, Coca Cola created yet a third formula Coke Classic: similar to what the customer wanted (The Original Coke)... but cheaper, because Original Coke used sugar as a sweetener instead of sugar-and/or-corn-syrup.
If Coke Classic came out right away, people would have complained since technically it wasn't best product CocaCola ever made, even though it was a cost effective way of giving the consumer something he wants.


INTEL --- Intel had a great product, the Pentium MMX, and baffled almost everyone when they created Celeron. Some people claimed Celeron was like AMD/Cyrix/IDT; but even more so [:-)]. It seemed almost like a parody of their competition.
People hated it. A while later, after everyone forgot about Pentium MMX expectations, Intel created yet a third chip, Mendicino: similar to what the customer wanted (The expected Pentium MMX upgrade path)... but cheaper, because Mendicino leverages the PII core instead of having to maintain a different core.
If Mendicino came out right away, people would have complained since technically it wasn't best product Intel ever made, even though it was a cost effective way of giving the consumer something he wants.

The end result for both companies a cost effective way of giving the customer a product he wants.

Does anyone know the name for this marketing technique?