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Differentiation and Positioning

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Presentation on theme: "Differentiation and Positioning"— Presentation transcript:

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

2 Objectives Product introduction
Compare and contrast Coca-Cola and Pepsi Cola Value Proposition and Positioning USP, Points difference, TAG LINE Reflect and Summarize Discussion

3 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 out as a remedy His bookkeeper created the logo that is still used till this day

4 What is Classic Coke? Coke is a thirst quenching refreshing, tangy, sweet, and fizzy soft drink Coca-Cola is the Coca- Cola company’s most popular beverage The soft drink originated in the contour shaped glass bottle, now also available in cans and plastic bottles

5 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

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

7 Differences PEPSI COKE Much Sweeter The first cola
Chemical aftertaste because of the sweeteners Fluid/Fruity Smoother Flavor strengthens over time COKE The first cola Dominant brand Sharp Cola Flavor Heavy Carbonation After continued drinking taste watery and bitter

8 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

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

10 Differences in Terms of Marketing
Classic Nostalgic Americana Wholesome Family-Friendly New Generation Trendy Celebrities Spot Aggressive Campaigning

11 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.   

12 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 Much Less: 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.

13 USP (Unique Selling Proposition)
Refreshing Quenching your thirst Satisfying Most popular and most sold soft drink Multiple brands under corporation Eco Friendly Renovated their image over time Coca-Cola: “The world of AHHH” Coca-Cola expanded their product line adding Diet Coke and Coke Zero to appeal to more customers, gain market share, and fulfill a need

14 Reflection:

15 Discussion Questions Why has Coca-Cola survived and been a leader in the soda market? Do you think it would be a good idea if Coca-Cola changes their marketing strategy for Classic Coke from traditional to a newer form?

16 Resources Kotler, P., & Armstrong, G. (2012). Principles of marketing. Toronto: Pearson Prentice Hall.  Unknown (2013). Pepsi vs. cola . Retrieved from Unknown (2011). Soft drink & beverage products . Retrieved from Clark, K. (Author). (2011, October 19). Coca-Cola Stock Continues to rise [Web Photo]. Retrieved from money.cnn.com/2011/10/19/pf/coca_cola_stock.moneymag/index.htm Richard,T.(Photographer). (2012,December 10). Beyonce Pushes Pespi [Web Photo]. Retrieved from Mohon, A. (Author). (2009, March 13). Coke’s Carbon footprints are revealed [Web Photo]. Retrieved from are revealed Uknown Photographer. (2011, December). Coca-Cola [Web Photo].Retrieved from 419.awareness.wordpress.com/2011/12/?s=Coca-Cola Unknown Photographer. (n.d.) .Coca Cola Wallpapers and backgrounds [Web Photo]. Retrieved from Unknown Photographer. (n.d.). Coca-Cola Poster [Web Photo]. Retrieved from Coca-Cola. (Producer) (2013). The world of ahh [Web]. Retrieved from Vaxo Sheila (Distributor) (2012). Pepsi vs. Coca Cola (funny Commercial) [Web]. Retrieved from


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