because his customers are demanding price concession are enhanced service levels in return for their continued business,Ariel decides that he wants to compete by offering unique products that are widely valued by customers.What strategy is Ariel following
Ariel is following a differentiation strategy.
Ariel is following the strategy of product differentiation. By offering unique products that are widely valued by customers, Ariel aims to set his products apart from competitors and attract customers based on the perceived value and distinctiveness of his offerings. This strategy allows Ariel to compete not solely on price concessions or service levels, but rather on the unique qualities and benefits of his products.
Ariel is following a product differentiation strategy. This strategy aims to set the company's products apart from competitors by offering unique features, designs, quality, or other characteristics that are of value to customers. By doing so, Ariel aims to address the demands of customers who are seeking price concessions and enhanced service levels in return for their continued business.
To implement this strategy, Ariel needs to:
1. Understand customer needs: Ariel should conduct market research and understand what features or characteristics customers value the most in a product. This information can help in developing unique products that meet these specific customer needs.
2. Product development: Based on the customer insights, Ariel needs to invest in research and development to create innovative products that are distinct from what competitors offer. This may involve improving existing products or introducing entirely new ones.
3. Branding and marketing: To effectively differentiate the products, Ariel should adopt a strong branding strategy that communicates the unique value proposition to customers. This can involve creating a compelling brand story and using marketing channels to reach the target audience.
4. Continuous improvement: Product differentiation is an ongoing process. Ariel should continuously monitor customer feedback, market trends, and competitor offerings to ensure that the unique products remain in line with customer expectations and preferences. Regular updates and improvements can help maintain a competitive edge.
By following a product differentiation strategy, Ariel aims to attract customers who are willing to pay a premium for the unique value that these products offer. This can help the company compete effectively and retain customers even in the face of demands for price concessions and enhanced service levels.