Your differentiation strategy is an integrated set of action designed to produce or deliver goods or services that customers perceive as being different in ways that are important to them. A differentiation strategy in retail can be supported by … You might have made a list of multiple differentiators that you can use to distinguish your brand from the competition. And the flipside of this is true, too. In fact, it’s the opposite—the world has a massive sameness problem. Product differentiation strategy helps Product Managers answer these key questions “Why should a targeted customer buy my product?” and “How can I make my product stand out from the rest?” The seemingly easy answer is: because my product is different from the others on the market. Advantages of Product Differentiation . Horizontal Differentiation. If a business decides to follow a cost leadership strategy as well as a differentiation strategy simultaneously, it has to plan it dual strategy very carefully. Differentiation strategy is built on a belief that one needs a clear and unique positioning. You can always do more research, add or change a feature, or try a new marketing strategy. The Daqian Times is a newspaper based in South East Asia (PH, VT & MA). Can you point the finger at a competitor (or a group of competitors) for what they’re doing wrong? Offering their customers a low-cost alternative to Samsung and Apple helped them to carve out a position in the mind of their audience and establish themselves in the industry. throughout the entire brand development process that is more critical than the differentiation strategy. As indicated, a differentiation strategy serves a broad market. Examples of product differentiation including unique design, customer service, and price. Differentiation focus strategy … Simply put, a differentiation strategy is a business strategy that revolves around making your company, product, or service unique, so it stands out from other businesses in your industry or market segment. Whether it is a small local business or a well-established MNC, every business requires a strong differentiation strategy to gain a competitive edge in the marketplaces. Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market. After establishing the key factors that make your business different from others, it’s possible to build a basic framework for executing your differentiation strategy. Curiously, not so much. Differentiation strategy 1. For example, if a customer purchases a product for a gift, they may want it delivered closer to a specific occasion. Differentiation Strategy Prof. (Dr.) Nitin Zaware Prof. (Dr.) Nitin Zaware 1 2. The jewlery company, which you may also know from Audrey Hepburn’s iconic movie “Breakfast at Tiffany’s”, is famous for its stunning hand-crafted and timeless designs. So in a world where we have so many choices, having a product differentiation strategy sets the foundation that defines your business and how other’s perceive your brand compared to your competitors. Differentiation strategy will fail if the competitors can quickly copy or imitate the differentiated features; in that case, buyers will find no difference among the products of competitors. These companies use advertising to show consumers the differences. Ideas. What is most certainly possible is how you name that product. Advertising & Articles: email@example.com It distinguishes your brand from all others. Differentiated marketing occurs when a company creates campaigns that appeal to two or more different target audiences, demographics, or marketing segments. Threats to success are introduced by disruptive competitors yet the differentiation strategy is successful when a firm … They took on a faceless giant brand (Lexington) who controlled 80% of the market, to offer stylish designer glasses as a fraction of the price. What are the 3 generic strategies? Product quality, features, and/or services are viewed by customers and end-users as being significantly different than the competition. In fact, the best differentiators are often difficult to see because they’re staring right at you. This doesn’t mean differentiators are difficult or complicated. With so many brands and so many varieties of products and so much advertising noise, it becomes very difficult but ultimately very necessary to differentiate your brand from competition. They pointed the finger at the market leader Gillette, for their overpriced blades with unnecessary features and challenged men to rethink their shaving habits (and not have the wool pulled over their eyes – something men don’t tend to take lightly). Coke’s entire positioning strategy is based around the emotion of “Happiness” and they remind you to “Enjoy A Coke” in every beautiful destination in the world, at every time of year. The main objective of implementing a differentiation strategy is to increase competitive advantage. - Who is it best for?This is one of the main tools businesses use to bid for their industry's customers. The extra costs … 2 associated with the low-cost provider strategy and the flipside of this is a rule a! And brand building in particular are important to this strategy make small gradual. Before taking any decisions or take help from a reliable business mentor article sent directly to you strategy! 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