Transcript Practicum – Chapter 7

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
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 out as a
remedy
 His bookkeeper created the
logo that is still used till this
day
What is Classic Coke?
 Coke is a thirst quenching
refreshing, tangy, sweet,
and fizzy soft drink
 Coca-Cola is the CocaCola company’s most
popular beverage
 The soft drink originated in
the contour shaped glass
bottle, now also available in
cans and plastic bottles
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
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
 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
 Nostalgic Americana
 Wholesome
 Family-Friendly
New Generation
 Trendy
 Celebrities Spot
 Aggressive Campaigning
 www.youtube.com/watch?v
=_sugeMMyKPY
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 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.
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
Reflection:
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 CocaCola changes their marketing strategy for Classic
Coke from traditional to a newer form?

Resources
 Kotler, P., & Armstrong, G. (2012). Principles of marketing. Toronto: Pearson Prentice Hall.
 Unknown (2013). Pepsi vs. cola . Retrieved from http://www.softdrinkfaceoff.com/pepsivs-coke/
 Unknown (2011). Soft drink & beverage products . Retrieved from http://us.cocacola.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