Question

Topic: Student Questions

How Is Differentiation Different From Positioning

Posted by Anonymous on 9/23/2008 at 6:37 AM ET 25 Points
When do we say that 2 products in the same category are differentiated well. When there is an inherent difference between their service/product attributes or when they are differently perceived by the consumer.

Can some one please explain with a very generic example of Coca-Cola Vs Pepsi. Whats the differentiation element and whats the positioning here?

Thanks
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by Lazenby on 9/23/2008 at 9:31 PM Accepted
    Great question. In my experience you have items being differentiated and brands being positioned.

    Differentiation
    Coke and Pepsi are fighting out differentiation on products with relative health, calories, and flavor for a reasonable cost.

    Positioning
    These brands are both positioned in the premium value segment. They promise superior quality, consistent performance, freshness, and to make you feel better than the true value brands which are a bit more boring and do not deliver lifestyle statements.

    To provide more contrast in this area, I think you have to compare to the positioning of the Premium brands (Jones Soda, Red Bull, etc) or some of the specialty brands (IBC, creame sodas, etc). These provide are positioned to the consumer as a trade up option delivering validation and novelty.

    Not sure I can drilling this down to the simplest view, but found this to be one of those fundamental questions which is not so easy as you begin to think about it. As an FYI, I think a better example to work from would be Beer, Coors vs Pacifico vs Becks vs Pabst, etc.

    Have a great one - clint
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Student Questions)