Marketplaces are filled with brands offering similar products and vying for customer’s attention. It has created cluttered markets with several similar products in the same category showcasing different features and price points. These meet the needs of unique customer segments like price-sensitive, tech-savvy, curious, impulse, discount-hunting and loyal buyers. However, making them choose your product over competitors is a struggle for business owners because of so many choices.
Thus, to stay relevant and maintain sales, entrepreneurs who purchase a business for sale in Canada must differentiate their products. It helps in easy identification of the item, building a brand image, positioning the product and creating a loyal customer base. So, here are the steps that can help businesses differentiate their products from competitors. These are vital in maintaining an edge and continuous sales by rising above the crowd.
1. Create Pricing Differentiation
The price of the product is the first thing noticed by buyers. It can be used to create a distinguishing factor by keeping the price lower than the competitors or higher. However, the entrepreneur should not compromise on quality or bear losses to maintain a lower price point. The selling price must be established after reducing the cost of goods sold, which includes the expense of raw materials, manufacturing, packaging and marketing.
The lower price strategy works when the audience is convinced that they are getting value for money. Conversely, if the product is priced higher than competitors, it is vital to position it as a premium commodity. For example, Apple offers similar features like any other Smartphone but is priced higher because it is marketed as a high-quality product. Thus, buyers do not mind paying extra and buying the latest iPhone.
2. Develop Distinction Based on Quality
To differentiate your product on the basis of quality, you need to first understand the needs of the target audience. For example, if you are selling clothes, you need to offer durability, attractiveness, comfort and superior fabric. If you are able to meet the expectations of the customers, you can easily grab a significant market share.
Business owners must keep working on improving the quality and maintaining the same standards that will set them above the competitors. They must communicate this unique selling proposition through marketing messages and acquire new customers who prefer good quality products irrespective of their prices.
3. Customise Products for Attention
Customisation is a challenging product when you have a sophisticated product that needs to be modified for every customer. However, if implemented with a sound strategy, it can bring the best results through ultimate customer satisfaction. Most brands offer products that are one-size-fits-all. Thus, when the customers get products that can satisfy their unique needs, they do not think about switching to competitors.
Customisation is easier for service-based businesses but challenging for product-based entities. Entrepreneurs who purchase a business for sale in Canada must use customisation to differentiate themselves in a crowded market. It requires segmenting the target audience into different groups and catering to their specific needs. They must gather feedback from buyers to customise effectively and increase sales.
4. Offer Exceptional Customer Service
Customer service is the way businesses treat their customers. Whether it is the buying experience or handling complaints, the support team must extend an impressive service that wins over the hearts of the buyers. It helps to create a positive image for the brand in the minds of the customers and turns them into brand advocates.
Businesses should have intuitive and easy-to-understand websites, form submission processes and purchase systems to provide convenience to buyers. Business owners must train employees to offer polite and quick service to customers. They must customise the conversations and build relationships while providing solutions to problems.
5. Create A Unique Product Design
Product design differentiation involves creating an exclusive look and feel of the goods. They must be packaged and marketed in a unique way to grab eyeballs and create a distinctive place in the market. For example, the shape of the Coca-Cola bottle serves the purpose of offering the convenience of carrying the bottle and standing out in the crowd.
Entrepreneurs who purchase businesses for sale in Canada can also help to make a difference in the market with unmatched packaging. For example, many businesses are transforming into sustainable entities and eliminating the utilisation of plastic packaging. They use cloth bags, cardboard and packing paper, which resonates with eco-conscious buyers and attracts them in large numbers.
6. Build A Niche for Your Product
Creating a product for a niche set of audience is helpful in differentiating it from competitors. For example, customised accessories will attract buyers who like personalisation for gifting purposes or buying trinkets. Thus, the business can carve a niche in a sea of other brands selling accessories like sippers, coffee mugs, jewellery, gift items, apparel, etc.
Entrepreneurs who purchase a niche business for sale in Canada can leverage the exclusivity of the entity to grow and prosper. These products can satisfy the precise needs of buyers and become popular among the targeted customer base. These buyers can help promote the brand through word-of-mouth publicity and posting positive customer reviews and ratings online.
7. Innovate By Adding New Features
Product features are distinct characteristics that help to set them apart from competitors. It requires creating an atmosphere of innovation and creativity in the office to incorporate futuristic features in the products. Offering unique benefits to customers can go a long way in building strong brand loyalty and increasing sales.
The functionality of the products should be according to the needs of the customers. For example, cameras in mobile phones are becoming more and more sophisticated and helping users to click high-resolution images. Google Pixel 8 Pro has inbuilt AI-powered editing features that make it the most unique product in the Smartphone segment. Travellers, youngsters and photography enthusiasts are making a beeline for this product because of this innovative feature.
Product differentiation is indispensable for small businesses to survive and thrive in a highly competitive marketplace. They can use different measures to carve a niche and build a customer base that helps to gain a competitive advantage.