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

Relationship between the firm and its customers Linkage between/within firms
Significance

Distances from total price based competition.
Can claim a premium.

Build products range. Quality of goods is improved by innovation. Helps adapt to a moving environment
Differentiating Factors
Product
Personnel Differentiating Factors
Service
Channel
Image
PRODUCT DIFFERENTIATING
Price Reparabi lity Form
Style
PRODUCT DIFFERENTIATI ON
Features
Reliabilit y
Customi zation
Durabilit y Quality
Perform ance
Product Differentiation
Price
Form Features
Price - Differentiates from the competition based on pricing factor
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
Price
Form Features
Chota Recharge for flexible usage starting from Rs.10 to Rs.100
Customization
Performance Quality
Durability
Travelocity Lowest cost for flight booking. Rs. 500 difference between them and competitors like make my trip, clear trip and yatra.
Price
Form Features
Tata Nano Rs. 1.4L to Rs. 2.1 L Upper Low segment and Lower Mid Segment. Catering to the aspirational needs
Customization
Performance Quality
Durability
Lux Soap Packs Price Bundling Cost of purchasing 6 packs individually costs more than in a pack
Price
Form Features
Customization
Performance Quality
Durability
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
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.
Price
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
Indias 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
Price
Form
Features
Customization
Performance Quality
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
Durability
The differentiating factor was that it contained glycerine. The transparency of the soap stood for gentleness and purity which made it a great success
Price
Form
Features
Customization
Performance Quality
Durability
Reliability Style
Moov is available in tube as well as spray
Reparability
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.
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.
Price
Form More Examples
Form
Features
Customization
Performance Quality
Durability
Reliability Style
Reparability
Price 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.
Price Form
Features
Brylcreem is available in wet look, extreme and for oily hair. Good Knight Coil has a low smoke coil which is safer and healthier
Price
Form
Features
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.
Price Form Features
Customization: Marketers can differentiate products by customizing them for different users.
Customization
Performance Quality
Durability
Reliability Style
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.
Reparability
Price Form Features
Customization
Performance Quality
The subscription packages can be modified according to the requirements of the customers Rolls Royce is famous for its personalized cars.
Durability
Reliability Style
Reparability
Price Form Features
Customization
Performance Quality
Durability
Reliability Style
Dell laptops can be modified according to user preference
Reparability
In Linux Operating Systems the Source code can be modified, and redistributed. It is generally used by computer professionals involved in advanced applications.
Price Form Features
Customization
Performance
Submit t-shirt designs online.. Designs are then put to a public vote... A small percentage of submitted designs are selected for printing and sold through an online store.. Creators of the winning designs receive a prize of cash and store credit
Quality
Durability
Reliability Style
Reparability
Price Form Features Customization
Performance: Level at which the products primary features operate.
Performance
Quality
Durability
Reliability Style
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
Reparability
Performance
Quality
Durability
Reliability Style
Worlds most-preferred Search Engine. Google is faster, user friendly and highly reliable search engine
Surf Excel is more powerful detergent as compared to competitors
Reparability
Performance
Quality
Durability
Reliability Style
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.
Reparability
Price 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.
Price Form Features Customization Performance
Quality
Durability
Reliability Style
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.
Reparability
Kingfisher Airlines Offers a high quality flying experience, above par from its competitors.
Price Form Features Customization Performance Quality
Durability: It is the measure of the products

operating life.
Durability
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
Durability: It is the measure of the products

operating life.
Durability
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
Ambuja Cement tooteygi kaise? Ambuja Cement se jo bani hai
Durability
Price 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.
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
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
Hondas Reliability means breakdowns are rare & service costs are minimal
Delivery of goods and services accurately Dabbawallas
Durability
Reliability
Style Reparability
Meru Cabs Rely on Us Reliable and trusted across various cities in India. Fair Priced.
Style: Describes the products looks and feel to

the buyer
Durability
Reliability
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
Style
Reparability
Price
Form
Features Customization
Performance
Quality Durability
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
Reliability
Style
Reparability
Style: Describes the products looks and feel to

the buyer
Durability
Reliability
Ray-Ban set a new trend in the market for coolers & sun glasses.
Style
Reparability
Sony Vaio recently introduced with changing colors of the laptop to suit the dress color and set the trend in the market
Reparability: Measure of how easily a product

can be fixed
Durability
Reliability Style
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
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
Durability
Reliability Style
Reparability
Google Android Market Leader in smart phones Faster Operating System More applications Multi touch Multi Tasking
Durability
Reliability Style
BOSE Philosophy Research fuels technology, and superior technology leads to superior performance
Reparability
Technology
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
Delivery
Maintaine nce & Repair
SERVICE DIFFERENTIATION
Installation
Customer Consulting
Customer Training
Ordering Ordering: It refers how easy it is for the customer to place an order with the company. Delivery Installation Customer Training
Place your order online Allows customization Book your tickets online and pay online
Customer Consulting
Maintenance and Repair
Ordering Delivery Installation Customer Training
Operates a 24hr basic shopping television network Gives you the facility to book your movie tickets online
Customer Consulting Maintenance and Repair
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
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.
Ordering Delivery Installation Customer Training
Certified Customer Consulting Dell Technicians use 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
Installation : Refers to the work done to make the product operational in its planned location .
Maintainence and Repair
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
Ordering
Videocon d2h fast and free installation
Delivery Installation Customer Training
LG free installation on all the split ACs
Customer Consulting Maintenance and Repair
Ordering Delivery Installation Customer Training Customer Consulting Demands its Maintenance and Repair
franchisees to attend lectures at Hamburger University in Oak Brook. Gives its customers a training after the software delivery.
Customer Training: Helps the customers employees use the vendors equipment properly and efficiently .
.
Ordering
Delivery
Installation
Customer Training
Customer Consulting
Siemens offers a variety of free and paid training services through their Training Web site & Authorized training centers.
Maintenance and Repair
Provides various certification to its dealers and their employees.
offer strategic business consulting, expertise in industryspecific business and IT issues McKinsey serves as an adviser to many businesses, governments, and institutions
Customer Consulting:It Includes data , information systems and advice services the seller offers to buyers.
Oracle Consulting offers services and methodologies designed to address technology needs helps companies across the globe to identify and capitalize on business opportunities.
Has service stations at thro out India
Maintenance & Repair: It help customers keep purchased product in good working order.
Provides service to its customers at a very nominal rate Provides service within 48 hrs if in warranty period
HP Total Care gives you a variety of service options for your HP and Compaq products, Provides Service to 45 airlines
Ordering Delivery Installation
Easy EMI wherein consumers can pay for handsets in three equal monthly installments (EMI) at zero percent interest. The scheme would help Nokia consumers to afford handset and accessories in the price range of Rs 7,000 - Rs 35,000.
Customer Training
Customer Consulting
Maintenance and Repair Bajaj Auto Finance Limited (BAFL) created a unique
Financing Options
finance scheme exclusively for all Bajaj motorcycles.
Employees Differentiation
Credibility Delloite
Courtesy Mc Donalds 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 products distinctive benefit and positioning. Developing a strong and distinctive image calls for creativity and hard work Image is the way the public perceives the company or its products
Jet Airways has made an
image as an Executive class airlines
Marlboro The Cow Boy
cigarette
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
Asias largest direct selling organization Has 5000 direct sales force Touches 1.2 million homes in India
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Differentiation Strategies

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Differentiation Strategies

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Differentiation

Attributes of the product or service

Distances from total price based competition.

Can claim a premium.

Personnel Differentiating Factors

Price - Differentiates from the competition based on pricing factor

Form - Products can be differentiated in the form

Form size, shape, or physical structure of the product

Moov is available in tube as well as spray

Dell laptops can be modified according to user preference

Performance: Level at which the products primary features operate.

Surf Excel is more powerful detergent as compared to competitors

Durability: It is the measure of the products

Durability: It is the measure of the products

Ambuja Cement tooteygi kaise? Ambuja Cement se jo bani hai

Reliability: Is the measure of the probability that

Customization Performance Quality

Style: Describes the products looks and feel to

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

Style: Describes the products looks and feel to

Reparability: Measure of how easily a product

to successful service differentiation is to know your customer really well

Maintaine nce & Repair

Customer Consulting Maintenance and Repair

Maintainence and Repair

Provides installation facility of modular furniture

Videocon d2h fast and free installation

Delivery Installation Customer Training

LG free installation on all the split ACs

Customer Consulting Maintenance and Repair

Maintenance and Repair

Provides various certification to its dealers and their employees.

Ordering Delivery Installation

Courtesy Mc Donalds employees

Reliability consistent and accurate service DHL

Competency - Better trained people Infosys World Famous training programs

Jet Airways has made an

image as an Executive class airlines

Marlboro The Cow Boy

Woodland Ruf and Tuf shoes

Channel and Distribution Differentiation

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