Learn how to use product differentiation to increase sales of slow-moving products. Find out how to identify, differentiate, communicate, and evaluate your products.

Product differentiation involves creating unique features or attributes to distinguish a product from competitors. Differentiation can be achieved through quality, design, technology, customer service, or branding eg, Nike's innovative technology in athletic shoes, such as Air Max cushioning, differentiates its products from other sports brands. Effective product differentiation can lead to increased customer loyalty, market share, and profitability. Companies should continuously monitor customer preferences and market trends to adapt their differentiation strategies. Successful product differentiation requires a deep understanding of target customers and a commitment to innovation and quality.

How can you use product differentiation to increase sales of slow-moving products?

If you are a merchandiser, you know that some products sell faster than others. But what can you do to boost the sales of the slow-moving items that are taking up space and inventory costs? One possible strategy is to use product differentiation to make them stand out from the competition and appeal to your target customers. Product differentiation is the process of creating and communicating the unique features, benefits, and value of your products to your customers. In this article, you will learn how to use product differentiation to increase sales of slow-moving products in four steps.

1 Identify your slow-moving products

The first step to addressing slow-moving products is to identify which ones are affected and why. Various metrics, such as sales volume, turnover rate, sell-through rate, or days on hand, can be used to measure a product's performance. Additionally, you can compare them to industry benchmarks or similar products in your category. After creating a list of slow-moving products, you should analyze the reasons behind their poor performance. Common causes include low demand or awareness, high competition or price sensitivity, poor quality or design, ineffective marketing or positioning, and misalignment with customer needs or preferences.

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TIKENDRAJIT BARUAH

Key Account Manager Suits & Blazer @ Silver Spark Apparel Limited Raymond Lifestyle
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To increase sales of slow-moving products through product differentiation, focus on highlighting unique features or benefits that set them apart from competitors. Consider repositioning the product to target a new market segment or adjusting pricing strategies to emphasize value. Implement creative marketing campaigns that showcase the product's distinctive qualities and address specific customer needs or pain points. Additionally, offer incentives such as limited-time promotions or bundle deals to drive interest and urgency. Continuously gather feedback from customers to refine and tailor your differentiation strategies for maximum impact.

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2 Differentiate your products based on customer value

The next step is to differentiate your products based on what your customers value most. To do this, you need to understand who your target customers are, what problems they have, and what solutions they seek. You can use customer surveys, interviews, feedback, reviews, or personas to gain customer insights. Then, you need to determine how your products can deliver value in terms of functionality (how well they perform or solve customer problems), quality (how reliable or durable they are), design (how attractive or user-friendly they are), service (how convenient or responsive they are), and brand (how reputable or distinctive they are).

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Dennis Crawford

District General Manager/Accounting
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Focus groups are one tactic that can be utilized to identify customer feedback on public/individual concerns and/or needs. This feedback can be used in product/service development which then can again be reintroduced to focus groups for additional feedback (allowing for additional refinement). Product introductions can be evaluated via various formats (pricing, product benefits or functionality or reactions to free add on options) to finalize final national rollout promotions.

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3 Communicate your product differentiation through marketing mix

The third step is to communicate your product differentiation through your marketing mix. You need to use the four Ps of marketing: product, price, place, and promotion, to convey your unique selling proposition (USP) to your customers. Your USP should be the main reason why customers should choose your products over the competition. To communicate your product differentiation through your marketing mix, you can highlight the features, benefits, and value of your products through packaging, labeling, or display. Additionally, setting the price of your products based on the perceived value, quality, or demand of your products can be beneficial. Furthermore, distributing your products through the channels, locations, or platforms that reach your target customers is important. Finally, advertising your products through the media, messages, or methods that attract your target customers can help you reach more potential customers.

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4 Monitor and evaluate your product differentiation strategy

The final step is to monitor and evaluate your product differentiation strategy. You need to measure the impact of your product differentiation on your sales of slow-moving products. You can use various indicators, such as sales growth, market share, customer satisfaction, or loyalty, to assess the effectiveness of your product differentiation. You can also use various tools, such as analytics, reports, or feedback, to collect and analyze data. Based on the results, you can adjust or improve your product differentiation strategy as needed.

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Harvinder Singh

✨🏅265 X Linkedin Top Voice 🏅✨|| Generative AI || Influencing others Voice || Business Transformation || Helping Client's to Grow their Business 📈 || DM For Promotion 💌 ||
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Product differentiation involves creating unique features or attributes to distinguish a product from competitors. Differentiation can be achieved through quality, design, technology, customer service, or branding eg, Nike's innovative technology in athletic shoes, such as Air Max cushioning, differentiates its products from other sports brands. Effective product differentiation can lead to increased customer loyalty, market share, and profitability. Companies should continuously monitor customer preferences and market trends to adapt their differentiation strategies. Successful product differentiation requires a deep understanding of target customers and a commitment to innovation and quality.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Dennis Crawford

District General Manager/Accounting
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Once slow moving inventory has been identified and why ( price point, store location, value) some tactics to move include depending on industry: * eliminating one monthly payment for mail/online/tool free offers * relocation of product to increase product visibility * include free inexpensive add on secondary items with purpose * utilization of signage to explain product benefits and/or functionality for increased awareness * utilization of customer reviews in advertising * functioning product displays * promote one day or weekend sale promotions In cases of poor quality renegotiation with vendors for either price concessions or RTV.

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How can you use product differentiation to increase sales of slow-moving products?

1

2

3

4

5

1 Identify your slow-moving products

2 Differentiate your products based on customer value

3 Communicate your product differentiation through marketing mix

4 Monitor and evaluate your product differentiation strategy

5 Here’s what else to consider

Merchandising

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How can you use product differentiation to increase sales of slow-moving products?

1

2

3

4

5

1 Identify your slow-moving products

2 Differentiate your products based on customer value

3 Communicate your product differentiation through marketing mix

4 Monitor and evaluate your product differentiation strategy

5 Here’s what else to consider

Merchandising

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