All About PowerPoint, Presentations & Life
Unlike its competitors, British beauty brand Lush has an international reach with a “warm and fuzzy” approach that isn’t afraid to push the envelope. But what makes Lush different from the competition? Handmade products! The brand is committed to ethical buying and is obsessed with the purity that comes from handmade goods. Lush branding depicts a great contrast with visuals simply not seen elsewhere, thus creating massive and brand-loyal followers. But how are they doing it?
- They understand the customer’s need - featuring both men and women as equals.
- Selfless with their products - offer free samples and in-store trials.
- They sell a viewpoint by defining “beauty” and not merely an image.
- They provide a unique retail store experience.
Consequently, by differentiating their products as handmade and socially responsible from the rest, Lush is crushing the competition.
To deal with the competition, brands need to understand that they are way more than just a sleek logo or a cool website. Therefore, a business needs to help its customers understand why they should eventually invest in its product. And the best way to do this is product differentiation.
Product differentiation - A catalyst in customer’s purchase decision
Product differentiation is a marketing strategy used by businesses to distinguish a product or service from the available ones in the market. The marketing, engineering, sales, product management, and support teams involve every customer to communicate the unique features and benefits, thus creating a competitive advantage.
Several factors differentiate a product, such as quality, design, pricing, customization, location, service, interactions, features, functionalities, and more. However, there are only three main categories — horizontal, vertical, and mixed. Incorporate these categories into your product differentiation strategy and create a perceived value for your product or service. To help customers associate with your brand’s unique features, we have included our top 15 product differentiation templates, five for each category. Let’s explore them one by one!
1. Horizontal differentiation
This type of differentiation includes products that are not linked to the quality or price point. Different brands offer these products at the same prices. When making decisions regarding horizontally differentiated products, you have to think of your customer’s desire, such as Coca-Cola and Pepsi, bottled water brands, dish soap brands, and more. So pick our templates and create a strategy differentiating the product’s style, shape, flavor, or taste.
This template will help you design a matrix that will distinguish your product or service from the competition. Thus, developing a strong value proposition for achieving a competitive advantage. So download it instantly!
Pick this template to highlight the forces that can differentiate your product or service such as producibility, performance, reliability, association, features, and more. The design is easy to edit. So download immediately and change it with your product differentiation strategy.
Digital organizations can utilize this template to establish a comparison with their competitors based on technological factors. It will also help them shine in the crowded field of competitors. So grab it right away!
Shoot up the growth of your retail store with this product differentiation template. It can be easily edited to infuse with quality information and strategies for holding a massive customer base.
This template includes a product differentiation table that highlights the impact of factors like style, quality, flavor, and functionality based on the physical, perceptual, service, and supply activities of the product. Download it and pick the factor that benefits your product.
2. Vertical differentiation
This type of differentiation is hugely dependent on the price or quality of a product. In this case, if all the products had the same price, there would be a clear winner for the “best” product, such as Heinz vs. any tomato ketchup brand; or a basic black shirt from retail vs. a black shirt from a top designer. Choose our handpicked templates to position your product with quality or price.
Companies can use this template to exhibit their scores, strengths, and weaknesses in comparison with the competitors. It considers the product differentiation factors like price, quality, service, selection, and more. Therefore, grab it right away and distinguish your business.
Choose this product differentiation table template to illustrate the different stages of your product’s cycle, covering sales, cost, and competitive analysis. This will help you find loopholes and take corrective measures.
This is yet another creative product differentiation template that can be downloaded to set your product apart from the rest. Translate the facets of your product into its key benefits, thus persuading your customers to purchase.
Small businesses must impact the market where more prominent players have a monopoly. Therefore, pick this design and differentiate your product, thus creating brand loyalty.
This template highlights five product differentiation strategies - mix segmentation, market analysis, product utilization, user need, and inventory stratification. Therefore, download it and captivate your audience.
3. Simple/Mixed differentiation
This approach differentiates with a combination of factors and is often lumped in the horizontal differentiation. It is usually visible in complex markets, such as vehicles of the same class or price from two distinct manufacturers. These well-structured templates will help you wipe out your competition. So grab them right now!
Select this innovative design and entice your team members for a brainstorming session. Design a robust product differentiation strategy to improve your market share leaps and bounds. So download it without any delay!
This yet another invigorating example of a product differentiation matrix template. Download it to create a memorable image for your brand that certainly will set it apart from the rivals.
Firms with multiple products can use this template. Create a robust product differentiation strategy, thus urging customers to try different products from the same company. Download it and earn brand-loyal customers.
Highlight your brand’s exceptional service or money-back guarantee with this product differentiation template. Inform all the departments to create a respectable differentiator for your brand. Download it and challenge big competitors in the same industry.
Pick this design to create a powerful product differentiation strategy for your business by adding new functional features or simply redesigning the product packaging. Download it and edit to your advantage.
Though we have scratched the surface of which factors determine the basis of product differentiation. But it’s worth noting that there is no unified product differentiation strategy. The ideal process is exclusive for each product, team, and organization. Nonetheless, our templates will indeed help you reach the numbers you wish for!
PS: Understanding your customer can be a critical process! Therefore, to build an emotional and long-lasting connection with them, learn from our guide on relationship marketing here.