Essay Sample on Team's Competitive Edge: Product/Service Diff. Strategy

Introduction

The competitive advantage the team is likely to take is product/service differentiation strategy. Primarily, product differentiation strategy mainly involves offering a unique product in the market through cost leadership and product differentiation. Although cost leadership is principally associated with price-conscious couture, product differentiation is an excellent technique that mainly enforces word of mouth marketing strategies and brand positioning to gain more customers. The reasons for product/service differentiation strategy are:

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• Product differentiation primarily translates the product attribute to benefits.
• It outlines the benefits the customer will get from the product.
• Increases the recall value of the product.
• Increase brand equity and brand loyalty.
• Give the customer the reason to purchase the product.

Making the Strategy Sensible

To make the strategy sensible, there must be three main approaches employed, and they include innovation, customer relations, branding, price differentiation, packaging, offering after-sale service, and targeting specific consumers. These approaches will help attract more clients as they feel appreciated. Moreover, the product will be different from the ones in the market.

Segmentation

The segmentation strategy for the product will be usage rate segmentation. This method the consumers according to how they use the product. Primarily, the groups will be divided into non-users and light, heavy, and medium product users. The approach will be to target heavy users as they will have massive purchases. Moreover, they form the smallest population in the market and but account for the highest spending.

Consequently, this will make it possible to create a product that is tailored to that group and which are or high quality. Moreover, the non-users will not be excluded, as they will provide positive prospects for future expectations. The competitors in the markets have failed to effectively exploit this group, and with the right, this product, the company is highly likely to do better. The buyer behavior of this group is ideal as it is a group of high spenders when they are provided with the right product.

Targeting

Heat shoe needs to be provided to the right customers. The segments are behavioral, and the usage rate is the main for the product. The ideal targeting strategy is niche marketing. This is because the product is mainly for a small percentage of the market, which is high spenders. Niche marketing only targets a few and specific segments if the consumer population. Adopting niche marketing is ideal as it gains an advantage through focusing all efforts on a handful of segments. Primarily, all the market analysis, market strategy, tactics concertation, and product development look at serving the selected part of the market. This is the main reason why fire shoes will reach the intended market and consumers.

Positioning

The positioning strategy for the fire shoe product will be the price positioning method. The prices of the product will be a crucial factor in detrending is the product will succeed or fail. Since the intended group has already been identified and they are big spenders, it would be ideal for quoting a price that would not make the customers shy away from the product. Having a low price will have the customers think that the product is of low quality. Consequently, having a high price might push the customer away. It is advisable to have the price close to the prices of other products in the market. The product price might go a little higher than those of other products as it is a strategy employed by most companies to indicate that the product is of high quality.

Marketing Mix

The marketing mix and the 4Ps of marketing are essential for the product to properly penetrate the market. The marketing mix is mainly concerned with the strategy the company product will use to promote the fire shoe in the market. The marketing mix is primarily made of the 4Ps, which are place, price, product, and promotion.

Product Strategies

Fire shoe is the main product. It is essential to male the ideal to the eyes of the customer. The product is of high quality and will deliver the performance of high quality. If the product is not of high quality regardless of the strategy adopted, the product will not be appealing, and the clients will not buy it.

Pricing Strategy

The value of the product should match the price. It is common knowledge that products of high quality are priced higher. The company must make sure that the company recovers the cost incurred in manufacturing the product. Moreover, making a profit is necessary as all organizations need to multiply the shareholder's value. The pricing strategy will also enhance and differentiate the image of the product.

Placing Strategy

The point of sale is essential in making the product available to the client. The product should be placed at the ideal stores that attract the right clients. Moreover, the distribution channels should be small for the price to stay at the recommended level.

Promotion Strategy

The activities undertaken to influence the client to purchase the product are essential in determining how the customers will perceive the product. The advertising methods will include television adverts and having celebrities at the time of launch.