Question

Topic: Branding

Product Comparisons

Posted by Anonymous on 9/14/2006 at 3:29 AM ET 350 Points
Hi,

I'm looking for advise is it correct to comprising two product of the same company?!
We are selling high class product made from aluminium material and now we would like to promote new steel product which is sell in lower price but have some functions from aluminium product? Is it correct way?
Is anyone used that kind of comparison before?
Our message is directed to customers who do not have enough money to buy high class product but would like to have good choice (alternative)...

I will be grateful for Your opinions

Panfred
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RESPONSES

  • Posted on 9/14/2006 at 5:32 AM Member
    Hi,

    What is your product? Do you have a brand that people trust? Are there big brands in that product class?

    Can you provide more info, please?

    Generally speaking, whatever you are selling you have to find your niche market. If you want to sell premium priced products, thats fine. If you want to sell low priced products, thats also fine BUT make a choice. You can't be everything to everyone so define your market niche and stick to it.

    This of course depends on the overall market situation, product class you are in and your corporate strategy, short term financial gains or long term brand building? Which one is it?

    Emi
  • Posted by Tatyiana on 9/14/2006 at 7:27 AM Accepted
    Hi Panfred:

    These types of product comparison sheets can be effective - but only when deployed at the right time of the sales cycle. What is your sales cycle like? Is it pick off the shelf sales or is there a longer more engaged sales cycle? It is not something that i would put side by side on my website. But each product description on your website should have the key features/benefits of that product.

    Ensure that you are highlighting each products 'Best of breed' points of interest without slamming the other. Obviously you have identified a need to have a more economical choice for your customers. Highlight how it still achieves their goals while keeping price points low.

    There are trade offs and customers realize that. It is about knowing your customers and positioning the product that is right for them, to them.

    And ensure you know "why" you want to do the product comparison. What is your end goal and what are you trying to communicate with that piece?

    T.
  • Posted by wnelson on 9/14/2006 at 9:34 AM Member
    Marcin,

    This is done ALL the time! Take, for instance, Microsoft Windows. There's Microsoft Windows XP Home - base price $80 (upgrade edition), and XP Professional - base price $110. How about cars - there's the 2007 Ford Crown Victoria - priced at $24,500 and the 2007 Lincoln Town Car priced at $42,100.

    Basically, these two products (XP Home v. XP Pro and Crown Victoria v. Town Car) are the same except that one has more features and costs more than the other. And they are positioned that way in the market place. Positioning is the strategic marketing act of placing the product (or company) toward which market segment you are targeting, versus the competition, versus other products and services in the customer's value chain, within the sales channel, etc.

    What you are talking about is termed a "flanking" product - one that is higher end or lower end than the main product to attract additional groups of customers - market segments who have different needs. As another product, take Coke versus Coke Lite (or Diet Coke as we call it in the US). Here, they aren't attracting customers who don't want to pay so much, but instead, customers who want less calories.

    In every case I can think of, the flanking product is given a differentiating brand name. Some times it's a completely different name (Crown Victoria v. Town Car) and in other's, it's a brand extension (XP Home v XP Pro). I have even introduced a flanking product whose price was lower without modifying the product - it was exactly the same product as the main product, but a lower price and specified with lower specs. Performance was identical.

    The key to do this flanking product correctly is to clearly TIE it to the first product in promotions - "Introducing the S2000 steel version of the A1000 aluminum version. The S20000 has all of the great features you have enjoyed in the A1000 like superior quality, best in class...." And then you DIFFERENTIATE it by telling customers that it is cheaper and what it can't do: "Because not everyone needs the full features of the A1000, we offer the S2000 as a lower cost alternative. Same wonderful features, except in a higher weight form." You also point out advantages of the new flanking product over any comparable cheaper competitive offerings, showing that you meet the price point, but are better.

    I hope this helps.

    Wayde
  • Posted by Frank Hurtte on 9/14/2006 at 10:59 AM Accepted
    Call them better and best

    be sure to include the advantages of both... considered over the competition... followed by the reasons to upgrade....
  • Posted by wnelson on 9/14/2006 at 3:52 PM Member
    Marcin,

    It's all in the positioning and branding. You build your case for the position of the low cost steel solutionagainst the competitors that have lower cost solutions - in particular, why your low cost solution is better then the competitors' solutions. And you set up marketing activities with placement with those customer segments that most likely won't have the money to afford your Best In Class aluminum solution. Pick the media (newspapers, magazines, TV, radio, billboards, etc) where these lower end segments go for information on sliding doors and you tout the benefits you have versus the competitors' products. There may be some erosion of sales in the aluminum doors from those high end customers in the lower level segments but you should make up for it in stealing your competitors' share. For the aluminum doors, highlight the advantages of aluminum over the lower-end doors the competitors have and lower end offerings in general. Marketing activities would be targeted to different media - that the higher end customers would see.

    Wayde
  • Posted on 9/15/2006 at 5:23 AM Accepted
    Hi Panfred,

    The situation which you are facing is mostly known as "Product Canabelization" in marketing language. As I am from India I dnt have much understanding of the US market thrust for this product. To understand it I read other posted comments.

    Panfred, what I understand is that your company wants to launch the steel sliding doors and you are already providing the Aluminium sliding door.

    So firstly I am totally disagree with one of member's point to compare your new (steel) product with the older (alluminium) one. Becoz in this way you are yourself degrading your older much better established product's image in the market, which will definitely going to benifit your compititor in the upper segment.

    The marketing solution for this problem is to clearly identify and define your market segment for both products and accordingly positioning the product in right segment.

    A good market research company can help in it or your internal research ept can do it. As Every comapny wants to expand its product line (sometimes in same segment), it doesn't mean that it is degrading other problem.

    It is the expansion of your client base as you are going to cater the other customer which was keen to buy your product due its famous brand name (alluminium) but was not able to buy due to high price.

    Now you are going to provide your valuable brand name, with good quality, features and functionality to that customer at lower price by just changing the material (steel). It definitely not going to hampher your initial product.. but yes a shift may be from alluminium to steel one... but you can take the pie of other customer from lower segments.. and this will definitely be kind of addition in your market potential.

    You should also search new buyers for the steel product like institutional, industrial, business houses rether than individual. The point of asthetics is null & void as steel can also provide same look of alluminium (what I know).

    Yes in durabilty and strengt are also good factors of comparision which may play major role according tosegment.

    So go for better research and then compare the features of both products and Go ahead with a superb launch and market share.

    All The Best

    Vivek
  • Posted on 9/17/2006 at 11:27 AM Member
    Firstly, u have to have 2 kinds of marketing plans. One for the aluminium which i believe it's market are more to the higher income group.

    Add a twist to this new product of yours. It's targeted to the less income group right? Develop your new marketing plan for this new product.

    Please do not compare both your products together, you don't want these products to share the same market(target aundience), do you?
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