Positioning and Pricing

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Positioning requires knowing similarities and differences between a brand and its competitors. According to Kotler & Keller (2012), “a good positioning has “a foot in the present” and “a foot in the future.” Basically, in order for a company to continue to grow, a company should be able to demonstrate “what the brand is” and “what the brand could be.” Positioning leads to a “customer-focused value proposition,” used to determine why the target market should buy their product. PepsiCo’s position in the market place has always been about branding its product. PepsiCo’s brand positioning for its cola drinks is that they are refreshing and makes one feel youthful, for its packaged foods is that their tasteful, convenient quick snack foods. PepsiCo’s brand positioning has allowed them to stay competitive with Coca-Cola in the beverage industry as well as Nestle in the packaged food industry. Also as defined by Kotler & Keller (2012), “points of difference are attributes that consumers strongly associate with a brand, positively and believe they cannot find to the same extent with a competitive brand”. PepsiCo’s point of difference is their forward thinking attitude. Coca-Cola isn’t very strong in this area. PepsiCo also has the image of being “action oriented” and a large part of their target audience associate’s themselves with this brand image. PepsiCo’s Point of Parity is that they have a wide selection to fit every lifestyle of consumers. Their wide selection ranges from regular soda, calorie free and low calorie drinks, water and a wide variety of packaged foods from traditional snacks to the healthier snacks. PepsiCo also considers themselves as “the bold, refreshing and robust cola.” Competitors could also consider themselves from this point of parity.

According to Forbes, Coca-Cola is leading PepsiCo in the beverage industry. Knowing this competitive frame of reference allows PepsiCo to remain a consistent competitor to Coca-Cola for so many...
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