Product differentiation
For Larson to separate themselves from the household battery names such as Energizer and Duracell they must focus on marketing and pricing strategies, which should include investment into differentiating their product from those competitors to create a competitive advantage. According to (n.d.) “Product differentiation can be achieved in many ways. It may be as simple as packaging the goods in a creative way, or as elaborate as incorporating new functional features.” (Product differentiation, para. 2). Since there is stiff competition in the battery industry Larson finds it difficult to differentiate its product. If Larson chooses to differentiate its product they will have more pricing power and could even have the possibility of creating somewhat of a monopoly. There are several ways in which Larson can seek to differentiate its products, some include: Improving the product itself by improving reliability, quality, performance, and styling. In some cases differentiation does not involve making changes to the product at all, but instead creating a new advertising campaign, sales promotions, or even making changes to the lackluster packaging can help differentiate their product. Additionally, differentiation can be created by educating customer about the difference between products through product branding and advertising.
After operating in Germany for over 15 years Larson has built its brand using unattractive packaging and humorous commercials along with the occasional magazine ad. Although there is less competition in Germany, sales are still down. In the American market Larson has to deal with stronger competition and struggles with creating a name for themselves using the same packaging as in Germany and a more serious commercial. It is important that Larson focuses on building a brand name that puts quality, reliability, and