When using the differentiation method, the company will need to create a feature that would distinguish the toy from competitors' products. For example, Raduga can manufacture indonesian numbers products directly in the presence of customers. In addition, the company can offer children to independently choose the design, content, and even the smell of the product.
Segmentation is when different products are promoted to different market segments. For example, among parents who are environmentally responsible or who have children with allergies.
In accordance with these segments, Raduga needs to produce toys from natural materials. At the same time, the target audience of some products may differ greatly from the main one. For example, teddy bears with hearts are most often purchased by young people as a gift for their loved ones.
Diversification in this case assumes that Raduga will start producing not only toys, but also, say, cosmetics. In addition, it will open a chain of cafes or start making furniture. However, there is no need to create a separate trademark for each direction. For example, Yamaha sells both motorcycles and sound equipment under one brand.
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Factors of product differentiation
Let's list the main factors that can be used to differentiate products:
Cost. This parameter is very important for defining the target audience. The lower the cost of the product, the wider the group will be. At the same time, expensive products can provide a higher average order value.
Quality: A company can position a product as a luxury or as a necessity.
Durability and service life. These parameters affect how long the product will serve the customer.
Technical specifications. This refers to computing power, horsepower, and some other parameters.
Features. Wide functionality does not always increase the attractiveness of a product. For example, if a person needs a razor blade, he is unlikely to buy a Swiss army knife.
Speed and convenience of delivery. For example, next day pickup and available shipping methods.
Aesthetics: The better the product looks, the more it should be emphasized.
Brand values. For example, a brand may support fair trade tactics. If a potential customer knows about this value, the likelihood of a purchase will increase.