In today’s competitive world, success of a new product is very difficult. Differentiation of own product from the competitors, gives competitive edge in the market. Company could differentiate its product from the competitors by giving extra benefits to the customer in terms of guarantee, warrantee, service, weight, packaging, price etc. Today big companies spend a lot of money to differentiate its product by giving some extra benefit to customer. Name of some of these companies are as follows: General Motors, Nokia, Samsung, Toyota, Apple, Panasonic, Honda, Apple etc.
Benefits of product differentiation to a company
- It give competitive advantage to company
- Help to attract its target customer
- Sell of product increases & cost decreases
- It gives additional value to the brand
- It gives positive sign to all stakeholders
Differentiation of product from other is not an easy task, as in R&D and innovation; companies spent a lot of money. But after successful innovation it adds a lot of value to the brand.
Ex: – Brand value of Apple increased from Microsoft in 2010 after the large demand of i-phone across the world.