Product differentiation
- Product differentiation is a prime technique that enables rival companies to beat the competition and stay ahead in the race. Pepsi and Coca-Cola are two of the leading brands in the beverage industry. However, the products of both brands vary widely.
While Coca-Cola limits itself to a single product, Pepsi has come up with a variety of options to suit the taste of the consumers. The prices of the premium products thus vary as well. For Pepsi, the pricing is done based on the product while that for Coca-Cola is done based on the variation of the product size.
- Heinz and Hunt’s offer ketchup, sauce, and other related products in the market. However, their products and marketing strategies vary widely from each other. Heinz brings in product differentiation by offering a wide variety of flavors of its ketchup, edchup, and sauce, while Hunt’s delivers an extensive range of products of preserved tomatoes.
Hunt’s differentiates its product through its size and the absence of high-fructose corn syrup contents. Heinz offers high-fructose corn syrup ketchup in the market. Hunt is much less diverse when compared with Heinz and its parent company Kraft Heinz, offering over 20 brands in various industries across the globe.
- In today’s competitive business world, organizations need to bring in continuous innovation to maintain the market lead. Product differentiation is one such tool that enables the companies to stay ahead of the competitors who are offering the same services or products to the customers.
It can be achieved through a variety of processes, some of which include incorporating variety in its range of products, differentiating the process of production, incorporating technological innovation, and many more. Product differentiation also makes it easier for marketing efforts to bring in more directive results. Organizations often consider differentiating their products internally as well to increase their grip over the market.
- The business realm demands the organizations to differentiate from the rest if they want to hold the lead in the race. One of the best examples is how Apple differentiates its iPhone from Android smartphones in the market.
The features offered in Apple’s iPhone vary widely from their Android counterparts despite being smart devices from the same generation. The prices of the products also vary broadly considering the differences in their built, technologies used, features provided, their rates, and many more. Product differentiation plays a crucial role in influencing the fate of the organizations as the customers may compare the products based on any of those factors before making a purchase.