Product differentiation is the process where there is distinguishing of the various differences that a product has. In this case the product is actually differentiated from the others in the market. It also involves ventures of making the product more attractive to the targeted market. In this case a Company differentiates its product from the others it produces and also those that are produced by other Companies. (Kotler, 2006) This is part of a product’s competitive advantage. The differentiation process is carried out so that a Company can demonstrate its product’s unique aspects.
This results in creation of a sense of value for the product. Any aspect of differential is never effective if it is not valued by the customers. Whenever a Company is successful in its product differentiation process it results in a competition that is monopolistic in nature in the market. This is known to be quite incompatible with perfect competition in the market. In most cases differences between products and brands are very minor. For instance, the difference can be in the theme of advertising or even packaging only. Mostly this process doesn’t need to change the entire physique of the product.
Research however shows that the physical product can sometimes be changed though it is not a must. The main objective in product differentiation is to develop a product position which will be seen as unique to the potential customers or target market. IPT Company will differentiate its product through different ways. It is very clear that there are very many gourmet food producers and retailers nationally and even locally. They include rival Grandmas Treats. This shows that there is dire need of IPT Company differentiating its product in the market.
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The marketing team will ensure that it illustrates the difference between its original products and those that are patented. This can be carried out through indicating on the packet. It is also very important that IPT Company advertises its products and illustrates the difference between its products and those that are patented. This will automatically enable the Company’s products to have a positioning the target market. The different flavors of popcorns produced by this Company are also an aspect that will differentiate this Company’s products in the market.
Owing to the fact that this Company currently has very many customers, it is very important that it maintains its quality of products in order to have a place in the market. Differentiation of IPT products will also be carried out through the distribution process and channel. This Company will distribute its products through different channels. One of them is through caterers who have a wide scope of customer base because they deal with other food products. The products will also be distributed through local gift basket producers.
Supermarkets and retail shops will also be used to ensure that all potential customers are accessed. IPT Company will also carry out its product differentiation through branding. This is a very important exercise that will enable the target market to easily identify IPT products from competitors. This will be carried out through the use of the Company’s name. IPT brand name will be used in its product because research indicates that the name already has a place in the market. The market will be on the watch out for competitor moves in their branding strategies that might end up affecting IPT brand.
It is very clear that competitors have the norm of giving their products brand names similar to those of successful Companies. This is normally carried out to confuse customers. (Kotler, 2006) Conclusion Market analysis is a process that is normally incorporated by management team in businesses. This venture is very essential since it makes management teams to make important decisions in line with market forecast. Every business needs to be very clear about its target market because it enables the marketing process to be very easy.
The target market for ITP Company is quite diverse in nature. It includes both the middle and the upper class status customers. The largest group of the target market of ITP Company consists of children. It also includes young adults and parents. Competition for this Company is currently not very stiff and therefore there is more room for expansion. It is therefore very important to segment this market. In market segmentation, there are distinct subsets called segments. These segments would tentatively have the same response to a specific marketing strategy.
Segmentation of ITP’s market will be carried out in terms of age, social status and geographical background. This will enable ITP Company to focus on individual groups during the marketing process. Product positioning will also be carried out by the management team in ITP Company. This is where the Company will try to create an identity or image in the minds of the target market. The next process will be product differentiation. This is whereby there is whereby the product is generally differentiated from the competitor’s in the market. ITP will differentiate its products through branding using the Company’s known name.
The other aspect that will differentiate this Company’s products from the rest is in line with its quality products. Packaging will also be used as one of the means through which ITP products will be differentiated in the market. All these aspects of market analysis will automatically lead to success in expansion of ITP Company.
George, J. (1994): Forecasting and Market Analysis Techniques: A Practical Approach; Westport; CT; Quorum Books Kotler, P. (2006): Marketing Management; New Jersey; Prentice Hall Ryan, l. (2006): Population by Age groups in states.