Product differentiation strategies
Posted: Sun Jan 19, 2025 9:01 am
There are several effective strategies for product differentiation. They can be used either individually or in combination.
At the product level
When implementing it, the company must demonstrate the advantages of the product to the potential buyer. It is necessary to convey to the client why this particular product has a specific benefit. In addition, it is necessary to show that similar product items offered by competitors do not have this feature.
It is important that the line database product really has exclusive properties. Unusual approaches to the production process and various innovative solutions can also serve as a basis for implementing this strategy. It is necessary to create a separate category on the market and become a monopolist in it.
For example, Pet Search offers customers unique products of their own making. Such products cannot be found anywhere else.
Pet Search
By product characteristics
In this case, the company presents its product as the best of the similar options offered by competitors. It is necessary to describe all the advantages of the product, demonstrate the strong points of the functionality and emphasize the technological superiority over other market players.
This strategy is often used in the electronics and IT industries. For example, a home appliance manufacturer claims that its vacuum cleaner saves energy better than all other options on the market, holds more garbage, sucks up dust more efficiently due to innovative solutions, etc.
When it comes to mass-market products, this strategy can be used when selling food products that have special properties or that involve a unique production process compared to competitors.
A striking example is the company "Baikal Legend", which offers products of its own manufacture. Products of this brand are created using a unique technology.
Baikal legend
Branded
When implementing this differentiation strategy, the company differentiates itself from competitors by creating a strong brand. Potential customers evaluate the usefulness of the product based on the brand itself. At the same time, the company uses innovative technologies, unique approaches to production and follows its traditions.
A strong brand must meet the following characteristics:
Having a unique name that customers quickly remember.
Product recognition in the market.
Matching the purpose of the goods with the needs of potential buyers.
Following your own values and rules, as well as having unique approaches to doing business.
This strategy is more difficult to implement than all the others. The company needs to spend a lot of time and effort to create the desired image. At the same time, branded differentiation of goods allows you to take a leading position in the market. This gives the company the opportunity to set prices that are convenient for itself.
At the product level
When implementing it, the company must demonstrate the advantages of the product to the potential buyer. It is necessary to convey to the client why this particular product has a specific benefit. In addition, it is necessary to show that similar product items offered by competitors do not have this feature.
It is important that the line database product really has exclusive properties. Unusual approaches to the production process and various innovative solutions can also serve as a basis for implementing this strategy. It is necessary to create a separate category on the market and become a monopolist in it.
For example, Pet Search offers customers unique products of their own making. Such products cannot be found anywhere else.
Pet Search
By product characteristics
In this case, the company presents its product as the best of the similar options offered by competitors. It is necessary to describe all the advantages of the product, demonstrate the strong points of the functionality and emphasize the technological superiority over other market players.
This strategy is often used in the electronics and IT industries. For example, a home appliance manufacturer claims that its vacuum cleaner saves energy better than all other options on the market, holds more garbage, sucks up dust more efficiently due to innovative solutions, etc.
When it comes to mass-market products, this strategy can be used when selling food products that have special properties or that involve a unique production process compared to competitors.
A striking example is the company "Baikal Legend", which offers products of its own manufacture. Products of this brand are created using a unique technology.
Baikal legend
Branded
When implementing this differentiation strategy, the company differentiates itself from competitors by creating a strong brand. Potential customers evaluate the usefulness of the product based on the brand itself. At the same time, the company uses innovative technologies, unique approaches to production and follows its traditions.
A strong brand must meet the following characteristics:
Having a unique name that customers quickly remember.
Product recognition in the market.
Matching the purpose of the goods with the needs of potential buyers.
Following your own values and rules, as well as having unique approaches to doing business.
This strategy is more difficult to implement than all the others. The company needs to spend a lot of time and effort to create the desired image. At the same time, branded differentiation of goods allows you to take a leading position in the market. This gives the company the opportunity to set prices that are convenient for itself.