Customers are more likely to try future products based on past good experiences. A differentiation strategy is an approach businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace. 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. Differentiation Strategy Defined. Product differentiation is economically advantageous to a company. Without strategic thinking, everything is the same… The opposite of standing out. Product Managers often shoot for the easiest way to create product differentiation: they add more features. The outcome of the differentiation strategy – is a well-established plan to enhance your products, and make them more … This differentiation strategy does not mean to compete with generic or low-priced products, but rather provide customers with the best overall value out of all your product competition. Simply put, a brand differentiation strategy is designed to create and promote unique characteristics and traits for a company, product, or service. No.11 Huixin Dongjie ,Chaoyang District,Beijing 100029, PRC, Differentiated Strategy: How to Build Competitive Advantage? 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. Commonly recognized differentiated goods include Toyota’s Lexus, Ralph Lauren clothing, and Caterpillar’s heavy-duty earthmoving equipment. Focus. Can you leverage heritage or origin to build trust? Can you unclutter your industry by simplifying? When one of the world’s largest processors of meat in the world, Tyson Foods, began selling chickens that were smaller than the average chicken, they had a choice. Differentiation, in marketing, means creating specialized products, services, or experiences that position your brand at a competitive advantage within a specific market segment or segments. Avoid the mistakes that 95% of amateur brand builders make and build brands to succeed. For example, by focusing your strategy on quality, your product may be seen as a status symbol for those who buy it. Differentiation strategy is one of the most important marketing strategy in today’s business environment. This differentiation strategy focused on producing high quality products at a low-cost to the consumer. The differentiation strategy is closely aligned with the product strategy. Differentiation Leadership Strategy. Differentiation is aimed at the broad market that entails development of a product or service that is unique from other products or services across the industry. So that’s where a tight product differentiation strategy becomes a big commercial hook. Differentiation focus strategy describes a situation wherein a company chooses to strategically differentiate itself from the competition within a narrow or niche market. This particular strategy focuses on market research data to understand the client and also to identify what the current competitors are … And the flipside of this is true, too. When we think of coke, we (consciously or subconsciously) think of happy times. But of course, saying you’re high quality doesn’t exactly mean much, since anyone can say the same. Dollar Shave Club broke into the market as an unknown start-up on the Mens Razor Blade market. Horizontal Differentiation. This differentiation strategy involves using the characteristics of the product you market to differentiate from your competitors. When making decisions regarding horizontally differentiated products, it … It distinguishes your brand from all others. If you can intuitively help a customer understand why they’d benefit from your product over another brand’s, they can quickly, easily decide to buy from you. It refers to making a company’s product different from the similar products of the competitors. So to get those creative juices flowing, here are 12 unique differentiation strategy examples. Differentiation strategy is a way how you would achieve differentiation of your products or services, and how you can make them unique, authentic, and distinct in the marketplace. 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. Finding a unique differentiator is a creative game and you need to get your mind thinking outside the box in order to find one that is unique enough for your brand to stand out. 104 Madison Avenue – Second Floor Provides economic benefits. You can always do more research, add or change a feature, or try a new marketing strategy. 12 Unique Differentiation Strategy Examples, So to get those creative juices flowing, here are. Leads & News Stories:, New York Headquarters The Differentiation Strategy. Whole Foods are the undisputed heavy weight champions of the organic and natural food market. A differentiated marketing strategy is when a company builds campaigns that appeal to at least two market segments or target groups. Consider using promotions to increase value-based differentiation. On a slightly more positive note, many companies have some good customer focused metrics, but rarely – or never – use them consistently and clearly in their marketing and sales messaging. - Who is it best for?This is one of the main tools businesses use to bid for their industry's customers. It’s usual to be confronted by these questions, especially when you are in the business world. A well-executed differentiation strategy helps your business to stand out in a competitive marketplace and convince potential customers to buy from you, rather than engaging competitors. Position your products for customer convenience as a differentiation strategy. Sameness is the default for most companies today. There are many factors that make your business stand out in the marketplace. Here are a few ways customers use product differentiation to make buying decisions. Make small, gradual changes to your product, brand identity, and marketing efforts so know what works and what doesn’t. 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