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 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

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 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

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 Coca-Cola changes their marketing strategy for Classic Coke from traditional to a newer form?

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