Description
Product Differentiation
Differentiation Strategies
Marketing management
Saurabh Dubey
Differentiation
? It is a task of defining your differences. ? How is the offer different & distinct from rest of the offers in the market. ? What benefits does this distinct offer provide to the customers. ? Differentiation is a strategy to build brands. ? Successful differentiation built & infused into products over time builds a strong brand
Saurabh Dubey
How to Differentiate
? By adding more features to the product ? Every improvement & innovation brought into the product, moves the product towards differentiation. ? Differentiation should be a continuous process so as to remain a preferred brand among customers.
Saurabh Dubey
Basis of Differentiation
? ? ? ? ? Product Service Promotion Price Distribution
Saurabh Dubey
On Basis of Product
? On basis of Ingredient of Product: e.g: Close Up was the first toothpaste to use Glycerin as the base ingredient while other used Calcium Carbonate. ? On basis of Functional Features: e.g: LG introduced Refrigerators with Food Guard & Intelligent Systems. ? On basis of Additional Features: e.g: Aristocrat launched Suitcase with wheels. ? On basis of Packsize: e.g: Chota Size strategy. ? On basis of Packaging: e.g: Kurkure
Saurabh Dubey
Product contd««
? On basis of Product Design: e.g: Kinetic Honda, Gillette, Intel, Microsoft. ? On basis of Product Quality: e.g: Godrej Storewell Solutions
Saurabh Dubey
On basis of Service
? Services can be differentiated from competitors e.g: Kingfisher Airlines ? Products can also be differentiated on basis of service e.g: Dominos 30 min delivery. LG Fix it right the first time.
Saurabh Dubey
On Basis of Promotion
? Selling more of a image/ brand/ status to the customer instead of only product. e.g: L¶oreal (Status marketing) uses Aishwarya Rai. Dinesh Suitings (Prestige) used Sunil Gavaskar. Reid & Taylor (Prestige) bond with the best. Coke uses huge celebrity endorsement so as to build image of the products. e.g: Thanda matlab «.. Coka Cola Coke: makes good things taste better. Nike uses sports person like Michael Jordon, Tiger Woods & Roger Federrer. Nike & Success go together.
Saurabh Dubey
On Basis of Price.
? Akai & Aiwa went for cost leadership starategy. ? Panasonic launched in 2010. ? Maruti 800 launched in 1980¶s.
Saurabh Dubey
On basis of Distribution
? e.g ? ITC ± e-chaupal
Agarbatti, Matchbox, Salt, Aata, Notebooks, Cigeretts.Also 3rd Party products. ITC also buys farm products from farmers at good prices
? HUL- Project Shakti
Targeted rural women to sell its products thus improving its reach to rural areas & providing employment to rural women through Anganbadi associations.
Saurabh Dubey
doc_663714660.ppt
Product Differentiation
Differentiation Strategies
Marketing management
Saurabh Dubey
Differentiation
? It is a task of defining your differences. ? How is the offer different & distinct from rest of the offers in the market. ? What benefits does this distinct offer provide to the customers. ? Differentiation is a strategy to build brands. ? Successful differentiation built & infused into products over time builds a strong brand
Saurabh Dubey
How to Differentiate
? By adding more features to the product ? Every improvement & innovation brought into the product, moves the product towards differentiation. ? Differentiation should be a continuous process so as to remain a preferred brand among customers.
Saurabh Dubey
Basis of Differentiation
? ? ? ? ? Product Service Promotion Price Distribution
Saurabh Dubey
On Basis of Product
? On basis of Ingredient of Product: e.g: Close Up was the first toothpaste to use Glycerin as the base ingredient while other used Calcium Carbonate. ? On basis of Functional Features: e.g: LG introduced Refrigerators with Food Guard & Intelligent Systems. ? On basis of Additional Features: e.g: Aristocrat launched Suitcase with wheels. ? On basis of Packsize: e.g: Chota Size strategy. ? On basis of Packaging: e.g: Kurkure
Saurabh Dubey
Product contd««
? On basis of Product Design: e.g: Kinetic Honda, Gillette, Intel, Microsoft. ? On basis of Product Quality: e.g: Godrej Storewell Solutions
Saurabh Dubey
On basis of Service
? Services can be differentiated from competitors e.g: Kingfisher Airlines ? Products can also be differentiated on basis of service e.g: Dominos 30 min delivery. LG Fix it right the first time.
Saurabh Dubey
On Basis of Promotion
? Selling more of a image/ brand/ status to the customer instead of only product. e.g: L¶oreal (Status marketing) uses Aishwarya Rai. Dinesh Suitings (Prestige) used Sunil Gavaskar. Reid & Taylor (Prestige) bond with the best. Coke uses huge celebrity endorsement so as to build image of the products. e.g: Thanda matlab «.. Coka Cola Coke: makes good things taste better. Nike uses sports person like Michael Jordon, Tiger Woods & Roger Federrer. Nike & Success go together.
Saurabh Dubey
On Basis of Price.
? Akai & Aiwa went for cost leadership starategy. ? Panasonic launched in 2010. ? Maruti 800 launched in 1980¶s.
Saurabh Dubey
On basis of Distribution
? e.g ? ITC ± e-chaupal
Agarbatti, Matchbox, Salt, Aata, Notebooks, Cigeretts.Also 3rd Party products. ITC also buys farm products from farmers at good prices
? HUL- Project Shakti
Targeted rural women to sell its products thus improving its reach to rural areas & providing employment to rural women through Anganbadi associations.
Saurabh Dubey
doc_663714660.ppt