ABC Ltd. is a beverage manufacturing company. It chiefly manufactures soft drinks. The products are priced on the lower side, which has made the…

According to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and focus. Porter called these base generic strategies. ABC Ltd. has opted for the Differentiation Strategy . The company has invested a huge amount in R & D and developed a formula for manufacturing sugar-free beverages to give the customer value and quality. They are pioneers and serve specific customer needs that are not met by other companies in the industry. The new product has been accepted by a class of customers. Differentiated and unique sugar-free beverages enable ABC Ltd. to charge relatively higher for its products, hence making higher profits and maintaining its competitive position in the market. Sugar free beverage of ABC Ltd. is being accepted widely by a class of customers. Differentiation strategy is aimed at a broad mass market and involves the creation of a product or service that is perceived by the customers as unique. The uniqueness can be associated with product design, brand image, features, technology, and dealer network or customer service. Achieving Differentiation Strategy To achieve differentiation, following strategies are generally adopted by an organization: 1. Offer utility to the customers and match products with their tastes and preferences. 2. Elevate/Improve performance of the product. 3. Offer a high-quality product/service for buyer satisfaction. 4. Rapid product innovation to keep up with dynamic environment. 5. Taking steps to enhance brand image and brand value. 6. Fixing product prices based on the unique features of product and buying capacity of the customer.