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Dimension of the business-level strategy
Business-level strategies and corporate-level strategies
Business level strategies are concerned specifically with
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Keurig's business-level strategy is differentiation. A business strategy that centers on differentiation will generally have products or services that offer unique attributes that a consumer will value over competitors. Because of the novelty surrounding the product or service in question, the idea for these businesses is to be perceived at a higher quality when compared to other competitors. The launch of a new product or service can be a defining and critical moment for any business. Precious resources such as time, money, manpower, research, and planning are just some of the few that are at risk for depletion if a company is not careful with launching a new product and/or service. In order to build their business and launch new product, …show more content…
The key fact that propelled Keurig was that while a lot of brands had single servings of traditional coffee or limited options, Keurig had seventy-five flavors at launch that fared well with consumers looking for more variety. Additionally, Keurig also had the ability to sell their coffee packs via multiple channels while other competitors had only online distribution. Finally, Keurig simply had a better performing machine that was received well by reviewers and consumers alike. Because of the many convenient ancillary benefits that were attached with their product, Keurig was able to sell their machine at more than two times than their closest rival. It is evident that because of their high cost and focus on consumer convenience and variety, Keurig always had envisioned and employed a differentiation …show more content…
The biggest selling point for a Keurig is the fact that it is convenient, and often a whole pot of coffee is not what a busy person needs or wants. Even for families, a single cup of coffee is appealing, as evidenced by the rise of Starbucks and other coffeehouses. What Keurig proposes in their value proposition is that consumers do not need to venture out and purchase this daily; they simply can do it at home with analogous quality and variety. Convivence allows for a more premium price-point and marketing position, and Keurig has done this very
Peter Dumvoic. & Daniel T.Knowles. (2008). Market Analysis, Marketing Masterclass, Product differentiation for competitive advantage, 8(5-8). Doi:10.1057/palgrave.jmm.5050122.
The larger serving size of Great Cups of Coffee is perhaps the most apparent gage that will improve appeal for the company’s customers. Receiving extra of a proportionately quality product for a comparable price obviously works as an enticement for customers to prefer Great Cups more than the opposition. While customers identify with a better quality and superior taste with fresher coffee, Great Cups supports its effective model of serving coffee that has been roasted no more 72 hours ago and that is blended and ground right at the store. Great Cups also provides as an unintended marketing method community bulletin boards and assists with book club gatherings as well as
Adopting a strategy of differentiation makes firms provide products and services what are distinct in some way valued by customers.
Differentiation: by focusing on those activities associated with core competencies and capabilities in order to perform them better than do competitors. The key point of this strategy is to create something that customers feel as being unique.
Porter (1997) suggests in order to gain competitive advantages in the changing business environment, it is essential to design a generic strategy for the business: product differentiation or cost leadership. The competitive strategy is determined at round 2, when recognised our rivals held whole product profile which was the product differentiation strategy. To differentiate our strategy from rivals for competitive advantages, Digby designed to imply the cost
Differentiation through marketing strategies, this is a form of innovation driven by the need to create a superior brand (Sadler, 2003).
For example, consumer electronics can easily be physically differentiated. • Marketing differentiation, where firms try to differentiate their product by distinctive packaging and other promotional techniques. For example, breakfast cereals can easily be differentiated through packaging. • Human capital differentiation, where the firm creates differences through the skill of its employees, the level of training received, distinctive uniforms, and so
Emphasis on quality, Starbucks Experience, brand image, and important suppliers to dispute lower price contributions to competitors hence increasing profits
One of the most important marketing strategy is differentiation strategy. It is necessary to differentiate the brand as there are more competitors in the market which makes the product identification difficult. Thus all top companies use differentiation strategies.
Marketing differentiation, where firms try to differentiate their product by distinctive packaging and other promotional techniques. For example Monster advertises by sponsoring tournaments, getting ownership of sports teams and conducting music concerts.
In the modern world of conducting business, any company that wishes to succeed must differentiate its products or services from others in the industry. Differentiation makes it possible for consumers to point out notable differences between one company’s products as compared to those of competitors. Differentiation helps companies build brand loyalty as the uniqueness keeps customers fixed on a particular product. BMW is one of the most popular automakers in the world today. It definitely uses differentiation as a strategy to beat off competition by building products that are innovative, detailed and incomparable to those of competitors.
According to the Harley Davidson case study, the author has mentioned Harley Davidson uses the differentiation strategy: focus strategy for their business level strategy. This is, the focus strategy is an integrated set of actions taken to produce goods or services that serve the needs of a particular competition segment. Thus, by using the focus strategy for their business level strategy, it can help Harley Davidson to build strong brand recognition for their products. Harley Davidson believes that they understand the dynamics of their market and the unique needs of customers within it very well. Since they serve their customers in their market uniquely well, they tend to build strong brand loyalty amongst their customers. As a result, they
Experimentation with the new market for carbonated beverages on the decline coke has done experiments in new flavors and healthier alternatives to try to stay competitive. As well as investing in “Keurig Green Mountain is a K-Cup maker but has a new Keurig Cold that can deliver Coca-Cola through the new system.” (Cooper, 2014)
Competitive strategy is the approach that an organisation takes in order to gain advantage over its competitors. According to Porter, there are two major sources of competitive advantages: costs and differentiation. Cost-based competitive advantage involves reducing production costs so that an organisation can earn higher profit margin or offer products at lower price compared to competitors. Differentiation-based competitive advantage involves offering unique properties that are not offered by competitors’ products. Differentiation allows an organisation to charge a premium for their products because they offer additional benefits to buyers.
Product launch not only helps company increase the sale revenue but also expand their customer base by targeting new segments. A successful launch involves the contribution and collaboration of all departments, from R&D, Logistic, Sale, Marketing and so on.