Differentiation Strategies

Differentiation

Definition Differentiation is the process of distinguishing a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own product offerings.

Basis of Differentiation 

Attributes of the product or service

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Relationship between the firm and its customers

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Linkage between/within firms

Significance 

Distances from total price based competition.

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Can claim a premium.

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Build product’s range.

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Quality of goods is improved by innovation.

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Helps adapt to a moving environment

Differentiating Factors Product

Personnel

Service Differentiating Factors

Channel

Image

PRODUCT DIFFERENTIATING Price Reparabi lity

Form

Style

Features PRODUCT DIFFERENTIATI ON

Reliabilit y

Customi zation

Durabilit y

Perform ance Quality

Product Differentiation Price

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Form

Price - Differentiates from the competition based on pricing factor

Features

Customization Performance Quality

Durability Reliability Style Reparability

Maruti 800 was the first economy car in India

Reliance introduced CDMA phones which were with handset and were much cheaper than its competitors

Product Differentiation Price Form

“Chota Recharge” for flexible usage – starting from Rs.10 to Rs.100

Features

Customization Performance Quality

Durability Reliability Style Reparability

Travelocity – Lowest cost for flight booking. Rs. 500 difference between them and competitors like make my trip, clear trip and yatra.

Product Differentiation Price

Tata Nano – Rs. 1.4L to Rs. 2.1 L Upper Low segment and Lower Mid Segment. Catering to the aspirational needs

Form Features

Customization Performance Quality

Durability Reliability Style Reparability

Lux Soap Packs – Price Bundling Cost of purchasing 6 packs individually costs more than in a pack

Product Differentiation Price Form Features

Customization Performance Quality

Durability Reliability Style Reparability

Big Bazaar provides great offers and low priced products by bulk purchasing and bulk discounts

Tide launched washing powder at just Rs. 25 against Surf Excel

Product Differentiation Price Form Features Customization Performance Quality Durability Reliability Style Reparability

Happy Price Menu Starting from just Rs. 25

Uninor got a competitive edge by introducing Calls at 29p/ mins.

Product Differentiation Price

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Form - Products can be differentiated in the form –

Form size, shape, or physical structure of the product Features Customization Performance Quality Durability Reliability Style Reparability

India’s first Lifestyle Channel featuring travelling, fashion, fitness etc and catering to the young cosmopolitan urban Indian population.

It was launched in different sizes of 5 gms, 10gms , 15gms etc tubes which were easy to use

Product Differentiation Price

Form Features

Customization Performance Quality

Durability Reliability Style Reparability

Bisleri created an adage by concentrating on its packaging. Bisleri has bottles in 500ml,1ltr,5 ltr,10ltr etc. making it suitable to carry the smaller bottles and storing

The differentiating factor was that it contained glycerine. The transparency of the soap stood for gentleness and purity which made it a great success

Product Differentiation Price

Form Features

Customization Performance Quality

Durability Reliability Style

Reparability

Moov is available in tube as well as spray

It was thinner than the normal cans. Pepsi wanted to target the younger generation with its MyCan by making it more stylish and easy to handle.

Product Differentiation Price

Form Features

Customization Performance Quality

Durability Reliability

Kinley Bottles – More Compact. Easy to handle. Change of design Style to attract customers and stand Reparability out.

Pears - Glycerin Soap Clear soap. Different from the traditionally structured soaps.

Product Differentiation Price

Form – More Examples

Form Features

Customization Performance Quality

Durability Reliability Style

Reparability

Product Differentiation Price

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Form

Features: Products can be offered with varying features that supplement the basic function.

Features Customization Performance Quality Durability Reliability Style Reparability

Harpic Toilet Cleaner with an application friendly nozzle.

Apple launched the Mac Book Air, the lightest and thinnest laptop on the market.

Product Differentiation Price Form

Features Customization Performance Quality Durability Reliability Style Reparability

Brylcreem is available in wet look, extreme and for oily hair.

Good Knight Coil has a low smoke coil which is safer and healthier

Product Differentiation Price

Form

Features Customization Performance Quality Durability Reliability Style Reparability

Brooke Bond Red Label Natural Care contains 5 Natural Ayurvedic ingredients i.e. Ashwagandha , Tulsi , Mulethi , Cardamom & Ginger

Hit for cockroach with sleek nozzle for hidden areas.

Product Differentiation Price

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Form Features

Customization: Marketers can differentiate products by customizing them for different users.

Customization Performance Quality

Durability Reliability Style

Reparability

The Subs are made using fresh ingredients, in front of the customer to their exact specification.

Company makes the paint of the exact colour the customer wants.

Product Differentiation Price Form Features

Customization Performance Quality

Durability Reliability Style

Reparability

The subscription packages can be modified according to the requirements of the customers

Rolls Royce is famous for its personalized cars.

Product Differentiation Price Form Features

Customization Performance Quality

Durability Reliability Style

Reparability

Dell laptops can be modified according to user preference

In Linux Operating Systems the Source code can be modified, and redistributed. It is generally used by computer professionals involved in advanced applications.

Product Differentiation Price Form Features

Customization Performance 

Submit t-shirt designs online..

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Designs are then put to a public vote...

Durability

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A small percentage of submitted designs are selected for printing and sold through an online store..

Reliability

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Creators of the winning designs receive a prize of cash and store credit…

Quality

Style

Reparability

Product Differentiation Price

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Form

Performance: Level at which the product’s primary features operate.

Features Customization

Performance Quality

Durability Reliability Style

Reparability

Introduced DTSi which enhances its power. Pulsar also had automatic indicator cutoff and digital speedometer

They understand the customers needs and provide additional services to its customers

Product Differentiation Price Form Features Customization

Performance Quality

Durability Reliability Style

Reparability

World’s most-preferred Search Engine. Google is faster, user friendly and highly reliable search engine

Surf Excel is more powerful detergent as compared to competitors

Product Differentiation Price Form Features Customization

Performance Quality

Durability Reliability Style

Reparability

Vim vouches on its performance that more than 10,000 plates can be washed with just one bar

Castrol motor oils and lubricants enforce their performance by its tagline “It's more than just oil. It's liquid engineering.”

Product Differentiation Price

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Form

Quality: Ensuring that the product is of higher quality as compared to its competitors

Features Customization Performance

Quality Durability Reliability Style Reparability

Indian Oil provides high quality petrol at a higher price.

Toyota Motors ensures quality by adopting the SIX SIGMA methodology in production.

Product Differentiation Price Form Features Customization Performance

Quality Durability Reliability Style

Reparability

Havells symbolizes Quality by their safety features like anti shock and fire proof electrical appliances

Lufthansa provides superior services to its flyers like First Class Flat beds, personalized menu etc.

Kingfisher Airlines – Offers a high quality flying experience, above par from its competitors.

Product Differentiation Price

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Form

Durability: It is the measure of the product’s operating life.

Features Customization Performance Quality

Durability Reliability Style Reparability

Woodlands is known for its rough & rugged products which eventually establishes “Masculinity”

Berger is mainly known for its exterior paint products which lasts long without deterioration to its color rendering

Product Differentiation Price

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Form

Durability: It is the measure of the product’s operating life.

Features Customization Performance Quality

Durability Reliability Style Reparability

Duracell as the name suggests, it symbolizes durability. Duracell Batteries are known for its long lasting power.

Revolutionized the Indian Automotive battery segment with its commitment to deliver quality products driven by international standards in battery design

Product Differentiation Price Form Features Customization Performance Quality

Durability Reliability Style Reparability

Ambuja Cement – “tooteygi kaise? Ambuja Cement se jo bani hai”

Product Differentiation Price

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Form Features

Reliability: Is the measure of the probability that the product will not malfunction or fail within a given time

Customization Performance Quality

Durability

Reliability Style Reparability

TATA brand name symbolizes / reminds us of reliability by it existence for a very long time in the market

Tupperware is unbreakable, easy to use light weight & stylish containers for modern day usage.

Product Differentiation Price Form Features Customization Performance Quality

Durability

Reliability Style Reparability

Godrej Nau-tal locks are the most reliable locks and the brand stands for safety & reliability which is now into safety lockers for domestic homes

Mercedes-Benz vouches for the reliability and safety features of the car. i.e Air Bags, Parking Sensors with Visualization screens on the front panel

Product Differentiation Price Form Features Customization Performance Quality

Durability

Reliability Style Reparability

Sintex establishes its reliability by displaying an experiment of the water tank falling from the top of the building & still remaining intact in their advertisement

Honda’s Reliability means breakdowns are rare & service costs are minimal

Product Differentiation Price Form Features

Delivery of goods and services accurately – Dabbawallas

Customization Performance Quality

Durability

Reliability Style Reparability

Meru Cabs – Rely on Us – Reliable and trusted across various cities in India. Fair Priced.

Product Differentiation Price

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Form

Style: Describes the products looks and feel to the buyer

Features Customization Performance Quality

Durability Reliability

Style Reparability

First in this segment of bikes to introduce a stylish bike in the market

Stylish watches & sunglasses provided at a low cost without compromising on the quality

Product Differentiation Price

Form Features Customization

Performance Quality Durability

Reliability

Style Reparability

Regarded as status symbol & a luxury product. Its usually priced high to maintain its exclusivity

Puma is the most stylish among the sportswear and its unique point is its wide color range

Product Differentiation Price

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Form

Style: Describes the products looks and feel to the buyer

Features Customization Performance Quality

Durability Reliability

Style Reparability

Ray-Ban set a new trend in the market for coolers & sun glasses.

Sony Vaio recently introduced with changing colors of the laptop to suit the dress color and set the trend in the market

Product Differentiation Price

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Form

Reparability: Measure of how easily a product can be fixed

Features Customization Performance Quality

Durability Reliability Style

Reparability

Wide Spread Network of Customer Care Centers & ease of access in case of a problem

Very Exhaustive Troubleshooting techniques as a part of the OS in addition to the online customer support system

Product Differentiation Price Form Features Customization Performance Quality

Durability Reliability Style

Reparability

Wide Spread Network of authorized dealer / service centers to attend to any on-road service problems through out the country. Maruti Suzuki has won customer satisfaction award eight times in a row for its after sales support

Product Differentiation Price

Google Android –

Form

•Market Leader in smart phones •Faster Operating System •More applications •Multi touch •Multi Tasking

Features Customization Performance Quality

Durability Reliability Style

Reparability

Technology

BOSE Philosophy – Research fuels technology, and superior technology leads to superior performance

Service Differentiation •When

a physical product cannot be easily differentiated ,key to comptetive success lies in adding valued services and improving their quality.

•Key

to successful service differentiation is to know your customer really well

Ordering

Maintaine nce & Repair

Delivery

SERVICE DIFFERENTIATION

Customer Consulting

Installation

Customer Training

Service Differentiation Ordering Ordering: It refers how easy it is for the customer to place an order with the company. Delivery Installation Customer Training

Customer Consulting Maintenance and Repair

•Place your order online •Allows customization

•Book your tickets online and pay online

Service Differentiation Ordering Delivery Installation Customer Training

Customer Consulting Maintenance and Repair

•Operates a 24hr basic shopping television network

•Gives you the facility to book your movie tickets online

Service Differentiation Delivery: It refers to how well the Ordering product or service is brought to the customer . Delivery Installation Customer Training Customer Consulting Maintenance and Repair

•A cement giant that guarentees to provide cement within 10 minutes

•Provides free delivery to its customers

Service Differentiation Ordering Delivery Installation Customer Training Customer Consulting Maintenance and Repair

•Delivers your offer within 30 minutes.

•Track your FedEx packages online •Get package shipment details using FedEx Track or FedEx Insight.

Service Differentiation Ordering Delivery

Installation : Refers to the work done to make the product operational in its planned location .

Installation Customer Training Certified Customer Consulting Dell Technicians use

Maintainence and Repair

proven methodologies to minimize installation time

•The installation should be carried out by a Tata Sky engineer only •First time installation charge is Rs.1000 only

Service Differentiation Ordering

Delivery Installation Customer Training Customer Consulting Maintenance and Repair

•Leading marketer and service provider •Provides free installation service

•Provides installation facility of modular furniture

Service Differentiation Ordering 

Videocon d2h – fast and free installation

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LG – free installation on all the split ACs

Delivery Installation Customer Training Customer Consulting Maintenance and Repair

Service Differentiation Ordering Delivery

Customer Training: Helps the customer’s employees use the vendor’s equipment properly and efficiently .

Installation Customer Training Customer Consulting Demands it’s Maintenance and Repair

franchisees to attend lectures at Hamburger University in Oak Brook.

•Gives its customers a training after the software delivery.

Service Differentiation . Ordering

Delivery Installation

Customer Training Customer Consulting

Maintenance and Repair

•Siemens offers a variety of free and paid training services through their Training Web site & Authorized training centers.

•Provides various certification to its dealers and their employees.

Service Differentiation Ordering Delivery

Customer Consulting:It Includes data , information systems and advice services the seller offers to buyers.

Installation Customer Training Customer Consulting Maintenance and Repair

offer strategic business consulting, expertise in industryspecific business and IT issues

McKinsey serves as an adviser to many businesses, governments, and institutions

Service Differentiation Ordering Delivery Installation Customer Training Customer Consulting Maintenance and Repair

•Oracle Consulting offers services and methodologies designed to address technology needs

•helps companies across the globe to identify and capitalize on business opportunities.

Service Differentiation Ordering

Maintenance & Repair: It help customers keep purchased product in good working order.

Delivery Installation Customer Training Customer Consulting Maintenance and Repair

•Has service stations at thro’ out India

•Provides service to its customers at a very nominal rate •Provides service within 48 hrs if in warranty period

Service Differentiation Ordering Delivery Installation Customer Training Customer Consulting Maintenance and Repair

HP Total Care gives you a variety of service options for your HP and Compaq products,

•Provides Service to 45 airlines

Service Differentiation 

Easy EMI wherein consumers can pay for handsets in three equal monthly installments (EMI) at zero percent interest.

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The scheme would help Nokia consumers to afford handset and accessories in the price range of Rs 7,000 - Rs 35,000.

Ordering Delivery Installation

Customer Training Customer Consulting

Maintenance and Repair  Bajaj Auto Finance Limited (BAFL) created a unique finance scheme exclusively for all Bajaj motorcycles.

Financing Options

Employees Differentiation Credibility – Delloite

Courtesy – Mc Donald’s employees

Reliability – consistent and accurate service – DHL

Employees Differentiation Responsiveness – Just Dial Efficient information and quick replies

Competency - Better trained people – Infosys World Famous training programs

Image Differentiation 

A company or brand image should convey the product’s distinctive benefit and positioning. Developing a strong and distinctive image calls for creativity and hard work

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Image is the way the public perceives the company or its products

Image Differentiation

• Jet Airways has made an

image as an Executive class airlines

• Marlboro – The Cow Boy

cigarette

Image Differentiation The logo represents class, status in India and reliability and safety in International markets

Woodland – Ruf and Tuf shoes

Channel and Distribution Differentiation •HUL caters to 7 million distinct outlets across India •59% of these stores are in rural India •HUL directly services over 1 million stores •Has a network of over 7000 stockists and distributors

•Asia’s largest direct selling organization •Has 5000 direct sales force •Touches 1.2 million homes in India

QUESTIONS???