A study of the differentiation strategies among retail chains (Project work towards partial fulfilment of assessment in the subject of Service Marketing)
Dr. Archi Mathur
Roll Number - 671
Faculty of Management
National Law University, Jodhpur
TABLE OF CONTENTS
Introduction: DIFFERENTIATION STRATEGIES
Introduction: RETAIL CHAINS
DIFFERENTIATION STRATEGIES IN RETAIL CHAINS
DATA TABULATION AND ANALYSIS
Differentiation is a competitive business strategy whereby firms attempt to gain a competitive advantage by increasing the perceived value of their products and services relative to the perceived value of other firm's products and services. Differentiation strategies are pervasive in market economies and are a powerful means of obtaining competitive advantages. A differentiation retail marketing strategy focuses on products that can stand out from the others competing for the attention and dollars of the target market. Retail market differentiation must set stores and products apart in order to create strong branding. Differentiation strategies are not about pursuing uniqueness for the sake of being different. It is about understanding customers and how the product can meet their needs. The differentiation today among retail chains has come through private labels, which in some cases account for as much as 70 per cent of the total merchandise in the outlet. And an outlet like Westside is a 100 per cent private label. Another way of differentiating is to make a strong statement in a particular segment.. Analyzing differentiation requires looking at both the ﬁrm (the supply side) and its customers (the demand side). While supply-side analysis identiﬁes the ﬁrm’s potential to create uniqueness, the critical issue is whether such differentiation creates value for customers, and whether the value created exceeds the cost of the differentiation. By understanding what customers want, how they choose, and what motivates them, we can identify opportunities for proﬁtable differentiation. Differentiation in retail chains is a facet of primary concern for all major retail chains the world over. The customer demands more than just different brands of the same commodity, and post-modern differentiation strategies provide just the solution. OBJECTIVES
To understand the concept of differentiation in today’s business environment.
To evaluate the differentiation strategies adopted by retail chains the world over.
To analyze the success and consumer-appeal for such differentiation strategies with extensive examples and studies.
The research methodology used in the present work is entirely secondary in nature. Thorough use of web resources has been made, all of which have found mention in the bibliography attached herewith.
AN INTRODUCTION TO DIFFERENTIATION STRATEGIES
A ﬁrm differentiates itself from its competitors “when it provides something unique that is valuable to buyers beyond simply offering a low price.” Differentiation advantage occurs when a ﬁrm is able to obtain from its differentiation a price premium in the market that exceeds the cost of providing the differentiation. Every ﬁrm has opportunities for differentiating its offering to customers, although the range of differentiation opportunities depends on the characteristics of the product. An automobile or a restaurant offers greater potential for differentiation than standardized products such as cement, wheat, or computer memory chips. These latter products are called “commodities” precisely because they lack physical...
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