Product and Service

Differentiation
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
Differentiation
Value Creation: A strategy that focuses on value
highlights the cost savings or durability of a
product
Non-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  Performance quality
 Form  Conformance quality
 Features  Durability
 Reliability
 Customization
 Style
Pric
e
Differentiates from the competitors on
the basis of pricing factor
 Cheapest car in the world.
 Price 1.23 lakh
 Stands for Economy and bility
Afforda .
 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.
For
m
M any 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.
Features
Products 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.
Customization
Marketers can differentiate the products by
customizing them for different users
 Slogan “Think Fresh. Eat
Fresh”.
 Includes a variety of
vegetables and Non-Vegetaria n
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 Quality
Performance 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
Durability
Durability 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.
Reliability
It is the measure of the probability that the
product will function without failure within a
given span of time
 | LOCKS
 India’s most trusted
product for locks.
 Implies latest
technology
and constant
innovations.
 Priced higher than
competitors.
 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.
Style
Describes 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 Ease
Ordering 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
Delivery
Delivery 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 &
Training
Installation 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
Maintenance and Repair
Maintenance 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.