Product Differentiation
Stabroek News
February 9, 2007
The best way to differentiate any product is by making it the best one in its class. We have some great examples in many of our local products such as our rum, pepper sauce and jams.
With all the latest in energy drinks and the launching of new structures such as Gafoor and Toolsie Persaud's new complex, I am sure National Hardware with its cramped space and cumbersome process of purchasing will now be feeling the pressure to improve. Consumers not only want a great product but also convenience and pleasant surroundings along with great customer service. (SN Business, January 26, 2007)
Many companies do not understand why they should worry about customer experience. Most of our companies do not collect and quantify data on consumers. I have spent many dollars in construction costs at a main hardware store and did receive a discount, but never something more that makes me feel appreciated. I get a bottle of fifteen-year-old Eldorado Rum from DDL every Christmas. Makes me want to buy more of their products. The packaging and product differentiation by our two rum producers are significant. There is a difference in both quality and marketing between the two. DDL has striven to differentiate their product from the competition.
We find many similar products as we walk down Regent Street. One must wonder what makes the consumer pick one over the other. We know some stores sell 'name brand' items that may differentiate from others but for the most part, most of the products are the same. Many vendors get their goods through the bureaucracy without paying the right fees thus can sell at a lower price than some and then we have the underground economy stores that can sell their products at a loss because profit is not their motive. Many companies that have similar products and are great at marketing can make their products look special by disguising the true cost and then claiming it's more economical than the alternatives. We find many stores compare their lowest price with the competitors highest cost plan or give coupons or prizes that are redeemable for prizes through an impossibly inconvenient process.
I strongly believe that good advertising can make people buy your product even if it is not up to par. Many believe that a dollar spent on brainwashing is more cost-effective than a dollar spent on product improvement. A good advertising campaign should be engineered to fit a precise audience. Advertising to males versus females is much different. I like the ones that say this product will help you get dates with bikini models.
The bottom line, it is essential for businesses to understand the customer. It won't change anything about your product really, but it's necessary if you want to exhibit an "I'm a more-customer-focused-than-thou" attitude.
Companies must strive for product differentiation by modification of their product to make it more attractive to the target market if necessary and differentiate it from competitors' products. The changes are usually minor; they can be merely a change in packaging or also include a change in advertising theme. The physical product need not change, but it could. As we strive for better customer service in our industry let us also strive to ensure our products and environment meet international standards.