JHT Task 1 Karen Means

Our team decided to choose the “Broad Differentiation” strategy as the basic strategy for our company. We will attempt to differentiate our product line in several distinct dimensions. By providing products that are vastly superior and unique from our competitors and pricing the products with an affordable price, we can gain something that is beneficial for the company in the future, which is customers’ loyalty and awareness. We may change or modify our strategy for the next round depending how it performs against our competitors.

5. Opportunity – Certainly there is a good opportunity for buying cheaper products. Most goods are bought in large volumes and factories in poorer countries are compelled to offer cheaper prices to keep their factories running with that kind of bulk buying. DG does not require a factory to be Audited and certified for quality standards and social compliance. Their products are sourced from the lowest priced, low standard small factories based in rural areas that usually employ child labour. These factories are able to produce cheap items because they do not have to add additional costs of being a compliant factory. This results in cheaper items coming to their shelves and being passed onto an unsuspecting customer. Their introduction does not reflect their mission statement for the above given reasons in terms of : Respect, a better life for customers, superior returns for

A Multicountry approach is one in which as organization’s strategies vary according to the countries in which it does business (Coulter, 2013, p.202). This approach is centered on creating an advantage through differentiation. The products, marketing, and distribution are tailored and adopted to local culture and customs. Such local responsiveness is important when significant country to country differences exist (Coulter, 2013, p.203). An example of this would be McDonald’s Corporation. To appeal to the local customers’ palates in Singapore, they added rice burgers – fried beef slices served between two pressed rice cakes, to its menu.

The focused differentiation strategy largely depends on a buyer segment that seeks special product attributes (i.e. healthier food, lower comparative cost, quick service) and on the company's ability to stand apart from its rivals (Thompson et. al, 153). In its uniqueness, Zoës Kitchen has the ability to be different and had no national rivals emulating its format or menu.

Strength and Weaknesses – They have a wide variety of products for men and women ranging from clothing, accessories, music, cameras, home décor, and also furniture. Not only do they have this wide variety in products, but also in the styles of the products. Their products are not geared towards a specific trend, although they are in style, they have many different trends available. Their prices, like American Apparel, are quite high though. They carry name brands like Obey and others whose prices are hiked up. Seeing as their target market is for younger ages, this could cause a problem.

It has been held in the United Brands case that product differentiation acts as a barrier to entry. Product differentiation is the development or incorporation of properties such as pricing, style etc. that the intended buyers of a product perceive to be different from others and therefore desirable. In the instant case the product differentiation has been made by different annual fee for licence of patented product.

Porter’s typology discusses the strategies of low cost, differentiation, and focus (Parnell, 2008). The three strategies can be used by any business, but Porter suggests that a company should choose only one of the three types of strategy because, otherwise, risks could be involved along with the waste of resources. Furthermore, Porter’s typology states that management has to make a choice whether to put its focus on a part of the industry or the whole industry. Secondly, Porter’s typology requires management to choose between a low-cost strategy or a differentiation strategy. However, Papa John’s combines the low-cost with differentiation in order to set its strategy. Papa John’s is classified in the restaurant industry, but also falls into the category of specialty eateries, and then fast food. By choosing the strategy of offering only fresh ingredients and dough made fresh

P&G need to work hard and do more research and development in order to produce higher quality, more innovative, and more unique in products in order to answer consumer’s need and compete with those major world brand competitors.

Providing an exceptional product or experience to the client which gives an added value may be termed as Differentiation Strategy. Differentiation does not just mean the way the final product shows up or the features it gives, but advancement and imagination may be integrated in everything the organization does from the raw materials to post-sales assistance in a manner that the clients may derive value from it. Considering Theme Restaurants as an example, at present the theme restaurant brand which leads the Restaurant industry with its competitive advantage is Hard Rock Cafe on the grounds that they offer a “Dining Experience” which is found nowhere else and is remarkable in every aspect (Heizer & Render, 2013, pp. 72).

There is no doubt that Wal-Mart is a key customer for any consumer brand. And keeping a strategically long term relationship with a retailer giant like Wal-Mart is inevitable, yet balancing sales with plenty of others is vital to a brand’s health. P&G has to find ways to reduce its dependence on these retailers. This is the strategy that P&G is using today, focusing on its core products and distinctive capabilities to serve those high-end segments. P&G also faces competition from Wal-Mart’s private brands. The retailer has been very aggressive in recent years in offering private brands. (Cravens & Piercy, 2013)

In a perfect market, no company has a competitive advantage or information asymmetries because every firm has equal access to all the factors of production. But, real markets are never perfect. Information asymmetries that lead to many competitive advantages do sometimes exist. Most of a company’s competitive advantages are considered short term but some of them can be extended for long periods of time. People may not realize it but many brands that hold great respect fail every year (Lauden and Traver, 2014). One way for a brand to fail is band

Avon’s entrance into Canada, its first foreign market, was based on a sales orientated marketing scheme and had little to do with product orientation. When the company developed “skin-lightening creams in Asia and long-lasting citrus fragrances in Mediterranean countries,” it exemplified a customer orientation, tailoring its products to meet specific consumer tastes (Daniels, Radebaugh, & Sullivan, 2011, p. 622). In China, the company changed its distribution channels from direct selling to making “products available in virtually every corner of the country” as part of a strategic marketing orientation

A recurring debate exists relative to product planning and focuses on the question of standardized products marketed worldwide versus differentiated products adapted or even redesigned for each culturally unique market. Those with a strong production and unit cost orientation advocate standardization and others, perhaps more culturally sensitive, propose the policy of a different product for each market. The issue cannot be resolved with a simple either/or decision. Cost revenue analyses need to be done and decisions made in the hard, cold lights of profitability. There is no question that significant cost savings can be realized from having standardized

Each orientation utilizes standardization or adaptation, or both, in its DNA. Ethnocentrism uses standardization, polycentrism uses adaptation, and geocentricism exercises both standardization and adaptation. How does standardization and adaptation affect the marketing mix? A comparison of the dichotomies is illustrated.

We have chosen to build our strategy upon a focused strategy, since it allows a much more narrow approach towards the market segment. In this case we have chosen focused differentiation.