Close up toothpaste uses glycerine as a whitening agent. According to the document, there are several prerequisites and potential pitfalls for an effective product differentiation strategy. Prerequisites include having a unique positioning, sustainable competitive advantages, allocating necessary resources, and offering consumer benefits that customers will pay a premium for. Pitfalls include differentiation that is not valuable, diminishing returns, being too expensive, insufficient marketing, not understanding costs or customers, and focusing too much on the product without the bigger picture.

1. "CLOSE UP TOOTHPASTE USED
GLYCERINE AS WHITENINGAGENT. WHAT
ACCORDING TO YOU ARE THE PRE-
REQUISITES FOR DIFFERENTIATION
STRATEGYAND WHATARE THE PITFALLS”

2. Close up Tooth paste
• Product differentiation strategy
• Value has tangible and intangible dimensions
• Product can be differentiated and value can be built in.
• Marketers differentiate their product offerings through
tangible and intangible product attributes.

3. Close Up
• Close up based on gel.
• A paste with glycerine as a base can be colored nicely.
• It can be given better flavor.
• Close up gel – red, green and blue colour

4. • Close up –properties of toothpaste + mouth wash
• Differentiation based on product ingredients/ formula
• Early growth stage – more than 15% market share

5. Tangible attributes
• Product ingredients/ formula
• Functional features
• Design/ Styling
• Customer experience associated with product
• Product quality
• Technology
• Service support
• Packaging

6. Intangible attributes
• Prestige/ Status
• Image
• Sentiments
• Beliefs

7. Pre-requisites for differentiation strategy
• Positioning – is it unique?
• Can competitive advantage sustain?
• Will resources be allocated?
• Will consumer pay for strategy?
• Does strategy lead to consumer benefits?
• Should we innovate?
• Can you cover costs with price?
• Does market value what product is offering?

8. How Do I Differentiate On Product
• Product features – can product solve problems faster or
cheaper? Eg. Hyundai – positioning – a car that offers
more vehicle for the money.
• Manufacturing process – secret ingredient or proprietary
technology
• Performance – BMW positions cars as ultimate driving
machine. Performance separates brand from competition
• Design – attractive unique product design example :
Apple, Italian cars (Ferrari), clothes (Gucci) – famous for
designs.
• Use Product quality as differentiator in less competitive
emerging markets

9. • Buyer must appreciate the value through differentiation
strategy.
• Analyse Buyer value chain – how product will be used by
buyer.
• Can we lower the buyer’s cost or raise performance?
• Improve the buyer’s perception of value
• Use criteria like product features, reliability and quality.

10. • Understand sources of differentiation – are there barriers
to entry?
• Is there a cost advantage in creating a differentiated
product?
• Value proposition must be based on different
characteristics of differentiation

11. Pitfalls of Differentiation strategy
• 1. Uniqueness that is not very valuable
• 2. Diminishing returns of differentiation
• If you become too differentiated, you leave yourself
exposed to a competitor that can offer the right level of
differentiation at a lower cost.
• 3. Too expensive

12. • 4. Ignoring Signaling Criteria
• Insufficient marketing or advertising efforts to influence
customer perception
• 5. Not understanding direct costs
• 6. Focusing too much on the product and not the
bigger picture
• Fully understand how your product fits into the larger
ecosystem.
• 7. Not understanding the customer