In the 90s, Hyundai made inferior quality cars. That is, understanding the market you operate in and what makes your brand different from competition. But it was also an opportunity. By implementing differentiation focus strategy, it allowed Snapchat to focus on the features that people from the age of 13 — 34 prefer, and as a result, user experience would be enhanced, as the app is tailored for them.
For the product to win market share, it requires existing consumers in the marketplace to change their purchasing behavior.
The success of Starbucks was a serious threat to their breakfast and other off-hours business. However, differentiation also contains disadvantages, an example would high cost and time consuming, especially in the introduction stage of the product life cycle.
In either case, the product will usually need to win market share from established competitors which is referred to as selective demand. The following diagram demonstrates this in visual terms. Hopefully it will give you a better perspective on how to choose a strong differentiator, that is meaningful to the consumer, and your brand can sustain long term.
Therefore, the positioning of any new entrant needs to have many points-of-parity that is, it must be seen to offer a relatively similar solutionbut it needs to have something unique or different about it points-of- difference.
These slogans are indeed very popular, but also a very ineffective way to differentiate a brand. However, in order to take advantage from offering a higher price, the quality of the product has to match the price, otherwise, consumers would lose interests because of not getting what they pay for.
It is your competitive advantage. When that group hit 50 percent of purchases in their top geographic markets, Jaguar introduced an all-wheel-drive model. Points-of-difference POD The aspects of the product offering that are relatively distinct to the offerings of like competitors.
Additionally, the Mac OS System has a better security against virus attack. Ideally, an organization would like to communicate everything about all of their products, but that is just not practical given the interests of the consumer and the vast array of marketing messages being sent out.
Find out what attributes make your brand unique and build your communication strategy around them. Apart from the concern over cost and time, another disadvantage would be differentiation hinders market entry. Their quality was perceived to be good enough that attention could turn to points of difference such as price, styling, gas mileage and warranty.
It is because successful differentiation would attract competitors to replicate, and once competitors implement price differentiation strategy, customers are likely to leave for a better offer in terms of the price.
If you enjoyed this article, consider subscribing to updates for more articles on how to position a brand. Points of Parity versus Points of Differentiation Identifying the points of parity and points of differentiation is industry specific.
In addition, differentiation would allow businesses to take advantage from brand loyalty. Hyundai took a point of parity and made it a point of differentiation: And too little emphasis on points-of-parity and the product might be perceived as not meeting the core needs for the target market.
Developers Bobby Murphy and Evan Spiegel took advantage from the growing trend of the social media, and targeted people from the age of 13 to 34, as expressing feelings and thoughts through the social media is one of the biggest phenomenon of teenagers.
Thus, even though the upside of differentiation strategy is more likely to outweigh the downside of differentiation strategy in the long-term, businesses also have to ensure its sustainability at the same time. Achieving product differentiation is one of the ways for businesses to become the market leader.
A bank will not be suitable, for example, unless it offers adequate ATM service.Point of difference vs. point of parity. Points of difference and points of parity are both utilized in the positioning of a brand for competitive advantage via brand/product.
Points-of-difference (PODs) – Attributes or benefits consumers strongly associate with a brand. Feb 28, · In this video we discuss Points of Parity and Points of Difference and how analysing both your own business's and your competitors Points of Parity and Points of Difference can help to create.
Points-of-difference (POD) and points-of-parity (POP) examples To see how POD and POP work in real life, let’s look at two examples.
The first example looks at a possible way that a chain of fast food outlets could challenge the market leader (in this case let’s assume that the market leader is McDonald’s). Oct 05, · Points of parity is the similarity between you and your competition.
Points of difference is what sets you apart from everyone. Source: Strategic Brand Management. Yesterday McDonald’s announced that it would be introducing free internet access.
This is a good move and a long overdue one. There are two important concepts when it comes to positioning: points of parity and points of difference. Google S Points Of Parity And Points Of Difference calories. Many companies are in the market with their products as complete health products; such as Complan, Bournvita, Horlics etc.
but the parent is always wondered which is the best health drink to buy for their kids?Download