Saturday, April 3, 2010

Broad differentation strategy

Broad differentiation strategy
Differentiation aims to establish uniqueness of a brand relative to competing brads is the perception of customers.It is making products different from competitors.It incorporates differentiating product features that are valued by customers.They cause customers to prefer a form's brand over the brand of rivals.Customers perceive superior value in differentiation.

Differentiation achieve uniqueness in ways that:
  • Customers perceive it hard to match or copy.
  • Cost is than price premium that buyers will pay.
Bases of differentiation can be based:
  • Production parameters:Size,shape,design,features,quality.
  • Services back-up:Delivery,installation,repair,training.
  • Personnel :For services,better and experienced personnel.
  • Promotion :Using differentiating claims in promotion appeals;status symbol.
  • Image :Projecting organization or brand image or reputation.
  • Technological innovation.
Drivers of differentiation:Differentiation possibilities can exist all along the value chain.The drivers of differentiation are :
  • Unique product performance :Strict Specification for quality inputs and procurement to raise product performance.
  • Unique product features:Product R&D activities that improve design,applications,variety,safety,recycling capacity,and environment protection.Creativity in product engineering.
  • New technologies:Improved production methods and process through new technologies that reduce manufacturing defects and lower product costs.
  • Unique services :Better services through unique capabilities for delivering customers value.It is through personal with expectational skill or experience and improved outbound logistics.
  • Detailed information :More and better product information to customers including e-commerce facilities.

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