A successful product differentiation strategy is key to drive brand loyalty among consumers in a crowded market. Product differentiation is perceived to increase customer loyalty which in return increases the company’s market share. Additionally, differentiation creates a competitive edge for a product within its target market.

• Innovate, Innovate and Innovate: Innovation is the key to grow and keep brands relevant in the crowded marketplace. Innovation is not always about introducing revolutionary new concepts, it could be a simple improvement to an existing offering based on consumer’s needs. For instance, the Coca-Cola “Share a Coke” campaign encouraged people to buy bottles with personalized names and share their experience using the hashtag #ShareaCoke. This innovative campaign succeeded in building a strong brand association with the consumers.
• Be eye-catching and creative: Grab the attention of shoppers as they skim through the aisle by executing unconventional shelf activation, using catchy slogans and bright colors. Kitkat, for example, executed an “End-Cap” product placement activating their famous slogan “Have a break, have a Kitkat”. The in-store display attracted new consumers and generated additional revenue.
• Get your product recognized: Consumers are prone to try award winning products versus other regular products. Distinctions are a strong differentiator that sets a product apart from the competition and drive sales up.