Dell's Pricing Strategy

Product Differentiation

Marketing or product differentiation is the process of describing the differences between products or services, or the resulting list of differences. This is done in order to demonstrate the unique aspects of your product and create a sense of value. (Wikipedia, 2008) LoggerHead Tools has created an industry of new-to-the-world tools that are designed to be used universally by all abilities.

LoggerHead Tools LLC designs, develops and markets innovative, new-to-the-world tools manufactured in the United States. Its mission is to create value-added, problem-solving innovations that provide enhanced value to its customers. (LoggerHead Tools, 2008).

LoggerHead Tools has received numerous prestigious awards for their innovative product creations. For example, recognition comes from the Chicago Innovation Award for its Bionic Wrench™ product line, a new class of adjustable hand tool that distributes force equally around a work surface; the Good Design award from the Chicago Athenaeum: Museum of Architecture and Design; and the Editor’s Choice award from Popular Mechanics for innovative product design to name a few.

“The best products provide a satisfying customer experience, are simple to understand and have universal appeal,” said LoggerHead Tools President Dan Brown. “These awards validate our mission to differentiate our products through innovation and design. Throughout our relationship with the customer, our goal is to blend form and function to create a unique problem-solving user experience,” he said. (LoggerHead Tools, 2006) Dan Brown emphasized that product differentiation has a major contribution to the company’s philosophy to manufacture its products in the U.S. “Our business model is to commercialize an American-made product in a value-added market space,” Brown said. “Adding value through strategic design differentiation, built on intellectual property protection of our innovations, is our only opportunity to...