Creating a product that is different from your competitor is important and this is when product differentiation comes in place. Product differentiation helps to increase the appeal of the product in a targeted market segment by making it different for all the other that exist in that market. It helps the product to stand out from its competitor while having a competitive advantage over them. Differentiation is what helps you be noticed in the eyes of customer (Kotler & Keller, 2012). If you’re coming up with the exact same product that’s already in the market and have nothing to differentiate yourself with, why would anyone even shift to choose yours? That is why product differentiation is key to any product success. Like in any part of the world, various strategies of differentiation are incorporated by the Nepali entrepreneurs as well. In this post, we look into few of those strategies devised.
Product differentiation by branding: This is one of the very common way adopted Nepali entrepreneurs to differentiate any product. Brands put their identity in the product they manufacture. Even for goods that are exported to various different parts of the globe, it goes with it. An example of it can be "Everest Hard Wear” keeping their tag and the logo with the cloths they ship both locally and internationally. That helps project the brand identity and also works as a way to differentiate them from their competitors.
With a feature no other product in the category use: A proper example of a company adopting this would be "Khalti”. They’ve made use of Kiosk machine which allows user to load funds into Khalti account using the same and also allows them to person some other transactions. This is something no other digital wallet in Nepal does and thus helps them stand out from the mass.
By highlighting a feature: Toole, a bike-sharing service in Kathmandu valley is collecting all the name for it for all the good reasons. With them only being the ride sharing service where a rider can give a lift to other people using the application while make money as well in the process, it’s something they’ve used to highlight their product with. As they being the sole service provider of this kind, they’ve used the same to differentiate themselves with and market it.
By size: Businesses come up with different size options when you go out to buy a water bottle, the same company manufactures the one of 250ml to over a liter. With their brand name attached along with it, that is something that helps to differentiate as well and appeal to different target customer as per their need. An example of Real juice can be taken in this category which ships in both small and big packet. Comparatively the larger packet juice cost even more than if multiple small packets are bought and collected in a single place - this seems weird but something they have used to differentiate themselves with and take an advantage of.
References
Kotler, P., & Keller, K. (2012). Marketing management (14th ed.). Upper Saddle River, N.J.: Pearson/Prentice Hall.
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Creating a product that is different from your competitor is important and this is when product differentiation comes in place. Product differentiation helps to increase the appeal of the product in a targeted market segment by making it different for all the other that exist in that market. It helps the product to stand out from its competitor while having a competitive advantage over them. Differentiation is what helps you be noticed in the eyes of customer (Kotler & Keller, 2012). If you’re coming up with the exact same product that’s already in the market and have nothing to differentiate yourself with, why would anyone even shift to choose yours? That is why product differentiation is key to any product success. Like in any part of the world, various strategies of differentiation are incorporated by the Nepali entrepreneurs as well. In this post, we look into few of those strategies devised.
Product differentiation by branding: This is one of the very common way adopted Nepali entrepreneurs to differentiate any product. Brands put their identity in the product they manufacture. Even for goods that are exported to various different parts of the globe, it goes with it. An example of it can be "Everest Hard Wear” keeping their tag and the logo with the cloths they ship both locally and internationally. That helps project the brand identity and also works as a way to differentiate them from their competitors.
With a feature no other product in the category use: A proper example of a company adopting this would be "Khalti”. They’ve made use of Kiosk machine which allows user to load funds into Khalti account using the same and also allows them to person some other transactions. This is something no other digital wallet in Nepal does and thus helps them stand out from the mass.
By highlighting a feature: Toole, a bike-sharing service in Kathmandu valley is collecting all the name for it for all the good reasons. With them only being the ride sharing service where a rider can give a lift to other people using the application while make money as well in the process, it’s something they’ve used to highlight their product with. As they being the sole service provider of this kind, they’ve used the same to differentiate themselves with and market it.
By size: Businesses come up with different size options when you go out to buy a water bottle, the same company manufactures the one of 250ml to over a liter. With their brand name attached along with it, that is something that helps to differentiate as well and appeal to different target customer as per their need. An example of Real juice can be taken in this category which ships in both small and big packet. Comparatively the larger packet juice cost even more than if multiple small packets are bought and collected in a single place - this seems weird but something they have used to differentiate themselves with and take an advantage of.
References
Kotler, P., & Keller, K. (2012). Marketing management (14th ed.). Upper Saddle River, N.J.: Pearson/Prentice Hall.