OK - so now we agree on everything except your Coke I'm Pepsi.
There's another commercial similar to the one Pepsi runs now. Coke drinker, Pepsi drinker, both abandon their usual products for Phase III. Could be done a lot of ways, and the spoof could be hilarious.
Because of the points you mentioned, I really feel it will not be a good thing to market right next to Coke and Pepsi. $1.20 vs $3+ doesn't sound like a good match to me. Especially if you are trying to get someone to switch. My example would be store brands are selling at record levels as you point out due to the economy.
I hope Roy will get placements in line, then run a huge promo with an advertised huge "temporary" price reduction as an intro. The key point being he has only so much time to get it to move. It's better to beat that dog down from the front end. (only a reference animal lovers)
A real key is actually cost of production and what freedom that allows him to do things like we have both alluded to
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