How can companies differentiate products?
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Transcript of How can companies differentiate products?
Setting Product Strategy
How can companies d i f f erent iate products?
Presentation byDivyasree P K
IIT Madras
DIFFERENTIATION
N. Distinguish to make something more attractive to a target group
Product Differentiation
Valid within the same company same company
as well aswith the competitors
1 Form
Size
Physical Structure
Shape
Physical structure
Medicines come in tablet as well as liquid form
1 FormSize
Sachet packaging is mainly aimed mainly aimed at the rural market
Shape
Standee pouches contributed majorly to differentiate Paper Boat from other carton or bottle based fruit drinks
2 Feature
Air 11’’
Pro 15’’
Air 13’’
Apple incorporated varying features in Macintosh laptops to develop Air and Pro product lines
3 Customisation
Mass Customisation
EQUALSEQUALSCustom made
PLUS Low unit cost of mass production
Differentiation is delayed…
…Till the lastestpossible point in supply chain
Caters the customers dissatisfied with off-the rack garments
Hewlett – Packard
Replaceddedicated power supply in LaserJet printers with universal power supply
Tackled regional imbalances in supply demand effectively
Customized DeskJet printers at local distribution center and not at the factory
Hewlett – Packard
Drop in shipping and inventory costs
THIS.. translates to an improved and
differentiatedcustomer experience
4 Performance Quality
Premium product
PERFORMANCE
Mid price product
Popular product
PRICE
PERFORMANCE
5 Conformance Quality
High consistency in expected performance expected performance across all the produced units
6 DurabilityExplains the dominance of Nokia in Indian market
7 Reliability
INCREASED probability of
NO NO failure
VOLVO = Reliability…
.. is differentiated to be a premium product in automobile industry
8 Style
Aesthetics is a KEY differentiator for luxury brands
ServiceDifferentiation
1 Ordering Ease
How easy is it to place an order?
User friendliness of the mobile appmobile app
Good customer service at the call center
Availability of taxis
2 Delivery
Speed & Quality are the riding factors
offer 20% discount for 10 minutes late delivery of concrete
3 Installation
N. Makes the product operational
Ease of installation &Accompanying personnel
are great differentiators
4 Customer Training
To enable the customer use the equipment properly
5 Customer Consulting
Encompasses the services seller offers to the buyer
6 Maintenance & Repair
To ensure that the purchased goods remain in good working order
7 Returns
A deterrant to online sales, mainly!
Improve logistics to eliminate controllable returns
Develop processes for handling uncontrollable returns