Product differentiation

Product differentiation means making its product or service distinct from rivals' offers. Better quality, a wider range, useful new features, strong branding and excellent customer service can all give customers a reason to choose it. Customers who value these differences may remain loyal or accept a higher price.

Good design and innovation can create product differentiation: differences that customers recognise and value. If customers prefer a product’s features or appearance, they may choose it rather than a competitor’s product. This can increase sales, strengthen the business’s reputation and help it gain a competitive advantage.