With the marketing competition pressures building Coca-Cola decided to come up with a new formula. The company spent 4 million dollars in researching a new formula. With some 200 newspaper and television reporters present, Coca-Cola announced the change in the formula on April 23, 1985. Within the first 24 hours of the announcement, over 81% of the United State's population had heard about the introduction of the new Coke. Within a week, nearly 1000 calls a day swamped to the Coca-Cola Company's eight hundred number from outraged customers. Six weeks later, the number of calls rose to 6000 per day. Over 40,000 letters were written to the company. Each letter was responded to, and sent with a coupon for the new Coke. When the Pepsi-Cola company heard about the change in Coca-Cola's secret formula, they assumed that it was changed to compete with their company. The Pepsi-Cola Company believed the change was due to the fact that Pepsi-Cola's product tasted better. The CEO of the Pepsi-Cola wrote a letter to every major newspaper in the United States, declaring victory.

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