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