| STRATEGY |
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| ONE OUT OF FOUR WILL DO |
As part of your campaign you will need to decide on the exact strategy to undertake with your campaign, this is called a competitive advantage. This is an advantage over your competitors, signified by the benchmarking which is gained by offering a greater value, either by way of lower prices, or providing a larger benefit or quality or by a higher level of service which all justify a higher price. |
| DIFFERENTIATION. EXAMPLE: APPLE |
This strategy is usually associated with charging a premium price for a product, often to reflect higher production costs and extra value added features for the consumer. Differentiation is about charging a premium price that more than covers the additional production costs, and about giving customers clear defined reasons to choose the product over other, less differentiated products. |
| COST LEADERSHIP. EXAMPLE:TESCO |
The objective is to become the lowest cost producer in the industry. Many market segments in the industry are supplied with an emphasis placed on minimising costs.This strategy is usually associated with large scale businesses offering "normal" products with relatively little differentiation that are acceptable to the majority of their customers. Occasionally, a low cost leader will also discount their product to maximise their sales. Particularly if they have a significant cost advantage over their competition and, in doing so can further increase its market share. |
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