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Differentiation and Positioning

Differentiation and Positioning. Julia Heitkamp , Rodney Hunter, Kia Moore, Andrea Parra, and Christopher Sims. Objectives. Product introduction Compare and contrast Coca-Cola and Pepsi Cola Value Proposition and Positioning USP, Points difference, TAG LINE Reflect and Summarize

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Differentiation and Positioning

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

  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 • www.youtube.com/watch?v=_sugeMMyKPY

  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 www.youtube.com/watch?v=GG_dxefhqjM

  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 http://www.softdrinkfaceoff.com/pepsi-vs-coke/ • Unknown (2011). Soft drink & beverage products . Retrieved from http://us.coca-cola.com/ • 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 www.beyonce.com/news/beyonce-pushes-pepsi-livefornow • Mohon, A. (Author). (2009, March 13). Coke’s Carbon footprints are revealed [Web Photo]. Retrieved from www.greenpackage.com/metrics_standards/coke’s_carbon_footprints 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 www.picgifs.com/wallpapers/coca-cola/ • Unknown Photographer. (n.d.). Coca-Cola Poster [Web Photo]. Retrieved from www.ebay.com/bhp/coca-cola-poster • Coca-Cola. (Producer) (2013). The world of ahh [Web]. Retrieved from http://www.youtube.com/watch?v=GG_dxefhqjM • Vaxo Sheila (Distributor) (2012). Pepsi vs. Coca Cola (funny Commercial) [Web]. Retrieved from http://www.youtube.com/watch?v=_sugeMMyKPY

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