Product & service differentiation

Product and Service Differentiation

Name Roll NumbersSwaraj Mahadik 2015058

Udit Mehrotra 2015059Umang Malhotra 2015060

Vishesh Srivastava 2015061Vishwas Bhanarkar 2015062

Vivek Patel 2015063Y Sharat Chander 2015064

Definition:

Product/Service differentiation:Product/Service differentiation is a market strategy that businesses use to distinguish a product/service from similar offering on the market.

Advantages of Product/Service DifferentiationValue Creation: A strategy that focuses on value

highlights the cost savings or durability of a productNon-Price Competition: Lets companies distinguish

themselves to differentiate on factors other than price. For eg: Quality, Flavor, Design, etc.

Brand Loyalty: Gains market share through perceived quality.

Characteristics of Product differentiation:

Price Form Features Customization

Performance quality Conformance quality Durability Reliability Style

PriceDifferentiates from the competitors on the basis of pricing factor

Cheapest car in the world. Price 1.23 lakh Stands for Economy and Affordability. Known as “poor man’s” car

A joint venture of Aditya Birla group and Walmart.

Claims to be the cheapest retailer on any given day of the year.

Provides huge discounts on bulk purchasing.

Fastest growing retail stores in India.

FormMany products can be differentiated in the form-size, shape, or physical structure of the products.

Rum-based alcopop with 4% alcohol.

Fruity taste Light drink Target customer

Urban Ladies.

Glycerin content. Transparent in

colour. Target customer

Ladies and children

Stackable snack potato chips.

Unique packing. Termed as only

potato chips company that don’t sell AIR.

FeaturesProducts can be offered with varying features that supplements the basic functions.

High end SLR/DSLR selling company.

Provides high end lenses.

Features high megapixel sensor.

Provides a large range of 100% natural with natural herbs.

No chemical base used.

Promotes Indian values.

Priced lower than competitors.

Promoted products as made in India, made for India.

CustomizationMarketers can differentiate the products by customizing them for different users

Slogan “Think Fresh. Eat Fresh”.

Includes a variety of vegetables and Non-Vegetarian options.

Customer can customize sandwiches as per their need.

Priced higher than market.

Revolution Clothing’s.

Plus sized fashion. Covers waist size 28” to

44”. Provides the customers

the option to get customized readymade clothing.

Performance QualityPerformance quality is the level at which the products primary feature operate.

High end sports car company.

Provides one of the fastest engine in the world.

An average Lamborghini can travel from 0-100 Km/Hr in less than 3 seconds.

More expensive than competitors.

Worlds most preferred search engine.

Comprehensive data search on web with real pace.

Other Feature include: Images, news, maps, weather Forecast, YouTube, blogs, sports score

DurabilityDurability is the measure of products operating life

Stands for strengths.

Rough and tough use.

Symbolize Masculinity.

Manufactures alkaline batteries.

Higher battery life. Provided in all sizes

and variants. Cheaper than its

competitors.

ReliabilityIt is the measure of the probability that the product will function without failure within a given span of time

India’s most trusted product for locks.

Implies latest technology and constant innovations.

Priced higher than competitors.

| LOCKS

General Motors India

Sells under the brand name of Chevrolet.

Sells it car under the “Chevrolet Promise retail scheme” which guarantees free maintenance for three years.

GM also claims that it has the lowest maintenance cost after three years.

StyleDescribes the product and feeling to buyer.

Very high end mobile phones.

Sleek metal design Known for being the style

statement nowadays. Slogan “If it’s not an

iPhone, it’s not an iPhone”

Define sports life styling. Most stylish among sportswear Available in different colour combinations.

Characteristics of service differentiation. Ordering ease Delivery Installation Customer training Maintenance and repair

Ordering EaseOrdering ease refers to how easy it is for you to place an order with the company.

Flipkart is an online shopping portal

Easy to order Provides convenience

using Flipkart apps. Cash on delivery first

brought by Flipkart

DeliveryDelivery refers how well the product or service is delivered to the customer, covering speed, accuracy and customer care.

Challenges for delivery in 30 minutes or less.

Guarantees hot pizzas on delivery.

Capturing market because of high quality of home delivery services

Targets middle and upper middle, urban consumer.

Installation & TrainingInstallation refers to the work done to make a product operational in its planned location.Customer Training refers to how the customer’s employees are trained to use the vendor’s equipment properly and efficiently.

India’s largest T.V. service provider.

Provides on call delivery of the equipment's and provides free installation of the same.

Also trains customers about the use of products.

Maintenance and RepairMaintenance and repair program helps customers keep purchasing products in good working order, an important consideration for many products.

India’s second largest computer selling company.

Have the largest network of service centres in India.

Introduced high quality on-site service and maintenance in India.

Thank You