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,

  • Provide a clear definition of research validity
  • Cite case-specific instances where validity was undermined
  • Discuss the wider ramifications of basing strategy on invalid research findings Critically evaluate the impact of deficient research reliability on marketing decision-making using the Crystal Cola case study. In your response,
  • Define the concept of research reliability
  • Illustrate with specific examples from the case
  • Analyze the broader organizational consequences of relying on data that lack consistency

Discuss the advantages of employing a mixed-methods market research design for ClearWave’s cola soft drink. Your answer should

  • Contrast the strengths of quantitative and qualitative approaches
  • Explain how integrating both methods deepens consumer insights
  • Critically appraise the potential challenges and how they can be managed

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:

  • Five precise research questions for ClearWave’s cola study
  • Five corresponding research objectives that align with each question
  • All the answers should focus on

    the theory whilst demonstrating

    application with appropriate

    examples

    More Terusha Govender's questions See All
    Similar questions and discussions