Product differentiation[ edit ] In order to achieve product differentiationthat particular product needs to have other unique features and stands out from its competing products, or that particular product becomes the only product that offers certain features to consumers by entering a new industry.
Join our mailing list Sign up and receive our latest thinking, insights and strategies to help your business grow better. The key to winning is assumed to be differentiation.
You will not be a player, which means you have no chance of winning — no matter how compelling your point of differentiation is. It will not compensate for a fatal liability. Change that liability into a point of parity POP.
The point of parity concept provides another perspective on how to make or keep a brand relevant. Category Points of Parity A category point of parity means that the brand offers necessary category features. A bank will not be suitable, for example, unless it offers adequate ATM service.
At first, some German car manufactures resisted adding cup holders, believing that car purists would not want such distractions in their car.
Jaguar executives saw their brand being irrelevant to those that wanted four-wheel drive. When that group hit 50 percent of purchases in their top geographic markets, Jaguar introduced an all-wheel-drive model. These vehicles were intended not to be superior to others but rather good enough to eliminate, for most buyers, the reason to exclude Jaguar from consideration.
A common brand problem is when the quality of the offering is not adequate in comparison to competition. In the 90s, Hyundai made inferior quality cars. But even inafter fixing their quality problem, people still shunned the brand because of the bad quality perception.
It took years, but through a variety of programs and communication channels, Hyundai found ways to communicate their increased quality levels and gained quality parity.
Their quality was perceived to be good enough that attention could turn to points of difference such as price, styling, gas mileage and warranty.
They were vetoing the brand altogether. The success of Starbucks was a serious threat to their breakfast and other off-hours business. But it was also an opportunity. Consider whether your brand lacks a point of parity on key dimensions. Unless parity is achieved, the most compelling point of difference will not win.
It will not be seen as relevant, and it will not be considered.Point of difference refers to the factors of products or services that establish differentiation.
Differentiation is the way in which the goods or services of a company differ from its competitors. Indicators of the point of difference's success would be increased customer benefit and brand loyalty.
However, an excessive degree of differentiation could cause the goods or services to lose their standard within a given . Main competitors Points Of Parity /Points Of Differenciation.
Points of parity: Nike and Adidas,Puma or Under Armour are amongst the world’s most popular athletic clothing and equipment brands operating in the same competitive market. Feb 28, · In this video we discuss Points of Parity and Points of Difference and how analysing both your own business's and your competitors Points of Parity and Points of Difference can help to create.
Identifying your brand’s points of parity and points of differentiation is the essential first step of every positioning project. That is, understanding the market you operate in and what makes your brand different from competition.
Google S Points Of Parity And Points Of Difference calories. Many companies are in the market with their products as complete health products; such as Complan, Bournvita, Horlics etc.
but the parent is always wondered which is the best health drink to buy for their kids? Two axes of positioning are point of parity and point of difference.
Based on the point of parity, the point of difference should be inculcated to customers. Both of the point of parity and the point of difference are important and they should be properly harmonized.