In order to identify what differentiation strategies were exercised by “Magnum ice cream”, firstly an understanding of what differentiation, and secondly how and even why it creates strong positions for products and services in highly competitive markets, like the ice cream market, is necessary.
Companies can choose to differentiate themselves along the lines of product, services, channels, people or image in order to have a competitive advantage over their competitors. Selecting the right combination or “bundle” of differentiators is key to ensure competitive advantage over the competition but that appeals …show more content…
Furthermore, competitors would have been able to copy Unilever’s strategy very easily and enter the adult market quickly therefore saturating the market in a short time and potentially not allowing customers to develop a strong brand preference. In order to be the first to develop, attract and retain the adult market successfully, the product needed to meet the needs of the adult market. This would ensure that Unilever would have a more sustainable competitive advantage over any new or existing competitor that would attempt to replicate Unilever in the future or enter the market, because if the needs of the customers both actual and perceived were successfully captured and communicated by Unilever, they would establish strong brand loyalty in the …show more content…
As the new product was positioned as “a high quality, indulgent impulse product for adults” in order to satisfy the target audience, the product had to be innovative and unique in its product development. The use of real chocolate, despite it posing technical challenges once frozen, was a key aspect despite the price implications. In developing or harnessing the technically challenging process of using real chocolate meant that it made it more difficult for competitors to replicate or copy the process and therefore enter the market in the