Differentiation and PositioningJulia Heitkamp, Rodney Hunter, Kia Moore, Andrea Parra, and Christopher Simms

ObjectivesProduct introductionCompare and contrast Coca-Cola and Pepsi Cola Value Proposition and Positioning USP, Points difference, TAG LINE Reflect and Summarize Discussion

Classic Coca-Cola History The original Coca-Cola was

created by a man named John Pemberton in 1886

He concocted aromatic “caramel colored” tonic and sold it at Jacob’s Pharmacy for five cents a glass

Coca cola started as a medicine

His bookkeeper created the logo that is still used till this day

What is Classic Coke?

Refreshing, tangy, sweet, fizzy soft drink

Coca-Cola first popular beverage

Originated the contour shaped glass bottle

Differences COKE The first Cola Dominant brand Sharp Cola Flavor Smoother Becomes water and bitter

overtime

PEPSI Much Sweeter Chemical taste after

because of the sweetness Fluid/Fruity Heavy Carbonation Flavor strengthens over

time

Differentiation- the steps a company takes to set their product or service apart from the competition, while creating greater value in the eye of the customer

Positioning- setting up products and services so they inhabit a clear, recognizable, and desirable spot compared to alternatives in the customers mind

America’s classic The New Generation

Coca- Cola vs. Pepsi

Differences in Terms of Marketing

Classic Americana Wholesome Family-Friendly

New Generation Pop Culture Celebrities Spot Aggressive Campaigning

Value Proposition

A brand’s Value Proposition is the full mix of benefits on which a brand is differentiated and positioned.

It is the answer to the question “Why should I buy your brand?”

Coca Cola achieves Value Proposition by sticking to it’s roots of tradition.

  

Value Proposition Achieved More for More: Upscale products at a high price More for the Same: Attacks a competitors more for more

positioning The Same for Less: Offers many of the same brands at a

deep discount Less for More: Consumers settling for less for a much

lower price. More for Less: What every company strives for but is

difficult to sustain because of cost and profits.

The following are possible value propositions: More for More Provides the most upscale product or service and charging a higher price to cover the higher costs. More for the Same Is how companies attack other competitor’s more-for-more positioning, instead the offer more for the same as their competition.

The Same for Less

Is an offer of the same brands at deep discounts. Less for Much Less

Meets consumer’s low performance or quality requirements at a much low More for Less

Is the best proposition but the most difficult to sustain because of the ability to uphold the for less “promise” without losing out to competitors.  

USP (Unique Selling Proposition)

Coca-Cola: “open happiness” Refreshing Quenching your thirst Most popular and selling soft

drink Multiple Brands under

corporation Eco Friendly Renovated their image over

time

Which Differences to Promote? Important: The difference delivers a highly valued benefit to

target buyers Distinctive: Competitors do not offer the difference, or the

company can offer it in a more distinctive way Superior: The difference is superior to other ways that

customers might obtain the same benefit Communicable: The difference is communicable and visible

to buyers

Preemptive: Competitors cannot easily copy the difference Affordable: Buyers can afford to pay for the difference Profitable: The company can introduce the difference

profitably

Points of difference Preemptive: Competitors cannot easily copy the difference Affordable: Buyers can afford to pay for the difference Profitable: The company can introduce the difference

profitably

Discussion Questions: