Stagnation isn't a good argument if you take Coca-Cola into account.

I don't know if Coca-Cola is a monopoly because Pepsi is a close substitute, but they are a leader in market-share in most continents, and if stagnation is what causes the loss of market-share, they would have been gone long ago.

They're certainly neither a monopoly nor stagnant. They've pumped out innovative new products over the years (Diet Coke for instance) and continue to do so. They've been an innovator in marketing in their industry.

Even the New Coke fiasco was only a failure to understand what nobody really understood at the time, which is that people don't purchase a soft-drink based on taste. It seems obvious to us now, but who would have guessed it back then?

I meant their main product - Coke, which has stagnated as a product for as long as I have lived upon this earth, and yet it is the leader in market share.

But you are right that they have not stagnated on Coke's marketing, although those Santa Claus commercials have been pretty repetitive.

It's different because Coke is chemically addictive, albeit much less than the drugs we commonly think of as addictive.

Even though the caffeine is the same chemical in Coke or other drinks, when you become addicted you also feel a compulsion towards the other circumstances around your consumption, like the exact taste of the drink. It's similar to why people prefer particular brands of cigarettes or beer - the preference gets stronger over time as it's chemically reinforced.

Well, it's not stagnant. The formula is (other than the change to HFCS perhaps) but the marketing, which is the true product, is not. What New Coke taught is that people aren't buying a drink for the flavor, they're buying the physical representation of good marketing and the positive emotions that come along with it. They've never stagnated in that aspect.

They've also innovated in logistics. You can get Coke in places where there's no running water.

They way I see it, Coke's goal is: 1) to make you want a Coke whenever you're thirsty (that's the marketing), and 2) to make it very easy for you to get that Coke (that's the supply chain/logistics part)

To go with the notion that a drink isn't purchased on its taste: Take note that Coke does taste different in certain countries, not the least of which because they often substitute sugars, particularly in Diet Coke. Also note that they even change the name of Diet Coke in many countries; a common one being Coke Light.