Differentiation and Positioning Julia Heitkamp Rodney Hunter Kia

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

Objectives § Product introduction § Compare 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

Coca- Cola vs. Pepsi America’s classic The New Generation

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: