. Obama Care and New Coke

This week marked the 25th anniversary of the introduction of "New Coke." It was a remarkable event, and well worth remembering for the unique response of the Coca-Cola Company's management to subsequent events.
The two of us were working with the Coca-Cola Company at the time. It was abundantly clear to us and all involved that this was not just another product launch: It crossed over from product marketing into the social and political sphere. In image polling we had seen the unique identity Coke had for the American people, whether they were Coca-Cola consumers or not.
The two of us were working with the Coca-Cola Company at the time. It was abundantly clear to us and all involved that this was not just another product launch: It crossed over from product marketing into the social and political sphere. In image polling we had seen the unique identity Coke had for the American people, whether they were Coca-Cola consumers or not.
New Coke was introduced by the company with high hopes, and they had good reasons for such optimism. It was a drink that consumers in blind taste tests rated superior not only to Pepsi, but also to Coca-Cola.
Despite consumers' immediate acceptance of the new beverage and an initial jump in sales, resistance began to form in small protests around the country. Sales began to lag. The objection was not so much to the new product itself, but to the company's hubris in removing the traditional Coca-Cola from the shelves to make way for the new.
It seems to us there may be some lessons here for politicians regarding ObamaCare. Just as most Americans were happy with the old Coke, 85% of Americans were happy with their own health-care plans at the time that ObamaCare was introduced. In essence, those plans were taken away from them in the same way the old Coke was taken away. And, as was the case with New Coke, opposition has continued to grow. This is personal for the American people.
Twenty-five years ago, faced with a successful launch but growing and vocal public resistance, the Coca-Cola Company's leadership did the extraordinary. They reversed themselves and returned classic Coca-Cola to supermarket shelves just 77 days after the debut of New Coke. Coke President Donald Keough actually went on national television to admit the mistake, essentially saying: We were wrong, but at least we're smart enough to listen to you.
People not only rejoiced, they rewarded the company with unprecedented gains in volume and market share.
After the Scott Brown Senate victory in Massachusetts, the administration had just such an opportunity. In February's bipartisan health-care summit, President Obama could have pulled a Keough, by listening to the desires of the American people and reshaping his proposal in response. Instead, the administration and the Democratic leadership decided to steamroll their plan through Congress.
As we've seen again and again over the past few years, admitting a mistake is almost constitutionally impossible for today's corporate chiefs, and even harder for politicians. Don Keough's lesson of transferring ownership of classic Coca-Cola back to the people—and the resulting success of that brand—has unfortunately been lost on those in Washington. They will pay a steep price for ignoring his example.