The Failed Launch of Crystal Cola: A Breakdown in Marketing Research Integrity
In 2003, ClearWave Beverages, a company with ambitions to disrupt the soft drink market, introduced an innovative
product: Crystal Cola. Drawing inspiration from the brief popularity of PepsiCo’s Crystal Pepsi in the 1990s, ClearWave
sought to leverage the rising health-conscious consumer trend. By offering a transparent cola that was branded as “pure,”
“clean,” and “free from artificial colouring,” the company hoped to appeal to a modern demographic increasingly wary of
artificial additives in food and beverages.
To inform its strategic decisions, ClearWave commissioned an extensive market research project through a third-party firm.
The findings suggested strong consumer interest in a clear cola product. Encouraged by these results, the company moved
forward with a bold and expensive marketing campaign, investing millions in production, advertising, and distribution.
However, within just eight months of its launch, Crystal Cola was pulled from the market due to dismal sales and
overwhelmingly negative consumer feedback. A thorough postmortem of the campaign revealed that the core issue lay not
in the product itself but in the deeply flawed market research that had guided its development and launch. Specifically, the
research lacked both reliability and validity, two critical pillars of effective marketing research.
Reliability, in the context of research, refers to the consistency and dependability of data collection methods across different
settings and times. Unfortunately, ClearWave’s research process was anything but consistent. Different geographic regions
employed different survey methodologies, including online questionnaires in some areas and in-person focus groups in
others. Even more troubling was the inconsistent phrasing of key survey questions, which varied widely across locations.
These methodological inconsistencies led to conflicting results. For example, in urban centres, 68% of respondents
expressed a strong willingness to try a clear cola, whereas only 34% did so in suburban areas. Due to the lack of
standardisation, it was impossible to determine whether these discrepancies reflected genuine differences in consumer
attitudes or were merely artifacts of the inconsistent methodology.
The research also failed to meet the standards of validity, which refers to the accuracy of a study in measuring what it
claims to measure. The study exhibited significant shortcomings in both construct validity and external validity. Construct
validity was compromised because survey questions often confused interest in general health trends with specific interest in
the product itself. For example, asking consumers if they preferred beverages without artificial colouring was taken as an
indicator of potential sales for Crystal Cola. However, this question failed to capture whether respondents were genuinely
interested in a transparent cola, or if they were simply expressing a general preference for healthier options.
External validity, which concerns the generalisability of research findings to a broader population, was also lacking. The
sample used in the research skewed heavily toward college students and health-conscious individuals. These participants
did not represent the broader demographic of soda drinkers, many of whom prioritise taste, brand familiarity, and price over
health claims. As a result, the data collected could not be reliably used to predict the behaviour of the wider consumer base.
The consequences of these research failures were severe. Based on the flawed data, ClearWave overestimated demand,
resulting in overproduction and widespread distribution to retail partners. The lack of consumer interest led to large volumes
of unsold inventory, reputational damage, and financial losses exceeding $5 million. These losses stemmed primarily from
sunk marketing costs and strained retail relationships.
This case underscores several important lessons in marketing research. First, methods must be standardised across
regions and formats to ensure consistency. Second, the sample population must accurately reflect the target market to
avoid skewed results. Third, researchers should prioritise behavioural measures, such as purchase intent and product trial
likelihood, rather than relying solely on attitudinal data. Finally, pilot testing research instruments and campaigns in small
markets can help identify and correct flaws before full-scale rollouts.
Ultimately, the failed launch of Crystal Cola serves as a cautionary tale about the dangers of neglecting research integrity.
Without reliable and valid data, even the most innovative products can fall flat in the marketplace.
Adapted from:
Bryman, A. and Bell, E., 2015. Business Research Methods. 4th ed. Oxford: Oxford University Press.
Malhotra, N.K., 2010. Marketing Research: An Applied Orientation. 6th ed. Upper Saddle River: Pearson Education.
Zikmund, W.G., Babin, B.J., Carr, J.C. and Griffin, M., 2013. Business Research Methods. 9th ed. Mason, OH: South-
Examine how compromised research validity can distort marketing decision-making in the context of the Crystal Cola case study. In your discussion,
Discuss the advantages of employing a mixed-methods market research design for ClearWave’s cola soft drink. Your answer should
Given the research aim—“To evaluate market potential, consumer perceptions, and purchase intent for Crystal Cola in order to inform product development, branding, positioning, and the feasibility of a nationwide launch”—formulate:
All the answers should focus on
the theory whilst demonstrating
application with appropriate
examples