Building a strategy on a differentiation requires a company to continuously invest in and develop:

Superior product quality (features, benefits, durability, reliability)

Branding (strong brand recognition, desire and loyalty)

Industry-wide distribution across all major channels (i.e. the product or brand is an essential item to be stocked by retailers)

Marketing capabilities (advertising, sponsorship etc.)

Differentiation strategy could be further divided into:

Purification (decrease in price; decrease in perceived value) – examples: EasyJet, Tata, Logan etc.

Hybrid (decrease in price; increase in perceived value) – examples: IKEA (SCM optimisation), Loreal (new brands as a response to crisis) etc.

Sophistication (increase in price; increase in perceived value) – examples: Mercedes (status), VW (reliability); Toyota (TQM)

Despite the fact that these brands pointed out above achieve significant economies of scale, they do not rely on a cost leadership strategy to compete. Differentiation often makes consumers believe that the higher prices 'make up' for the quality and/or higher costs. Strong marketing capabilities enable them to sell products for a premium and at the same time persuade customers to become brand loyal. For this assignment, find an example (DO NOT USE ANY OF THE EXAMPLES LISTED ABOVE - Tata/IKEA/etc.) of a direct-to-consumer advertisement which promotes a brands differentiation strategy.

Purification - link of advertisement and explain WHY

Hybrid - link of advertisement and explain WHY

Sophistication - link of advertisement and explain WHY

pur-new-sol

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