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Design As A Part Of Business Strategy

Posted on December 18, 2017

Category: Branding, Business, Marketing, Product Design

Design As A Part Of Business Strategy

Want your company to be successful? If so, you must have a firm plan. In this case, let’s talk straight business. Which business strategy do you use for your business development? Is it a growth, product differentiation, price-skimming, or acquisition strategy? Perhaps, you’ve gone even further, combining several of them? Still, no matter which strategy you use, there is one point that should be included in any of them: design.

1. Growth strategy

This business strategy is all about introducing new products to customers or upgrading some features of the existing ones. As a result, the company invests in its own development, getting improved and establishing trust. This type of a business strategy ensures that clients won’t choose your competitors over you. For example, think of Tesco. This British grocery retailer has adopted this strategy hundreds of times. The easiest and most obvious change was adding new products and services like eyewear and coffee shops in its existing supermarkets. According to Forbes, it was one of the main reasons for Tesco’s stock price to grow 291%. Impressive, isn’t it?

tesco business logo design

How did design help?

Design was the core of Tesco’s growth strategy advertising. Posters, banners, and even coffee cups were designed in one common style, embellishing this business strategy with design. Without a proper design, the growth business strategy would fail. What’s more, design helps the whole world to find out about the changes your company implements, let alone the promotion of those changes.

2. Product differentiation strategy

Choosing a product differentiation strategy, you show the contrast between your own company and its competitors. This is a sort of an explanation expressed by your products and services, showing why your business is better, more consistent, and much more beneficial to choose. It can be implemented due to various features, e.g. price, quality, customer service, or, what is more interesting for us, design.

Among hundreds of famous brands that go for a product differentiation strategy, Apple would be one of the most worthy to be mentioned. Its slogan, “Think different”, is only partially the reason. This company has been a first mover in the world of gadgets with such products as iPod, iPad, iPhone etc. Not because similar products with similar features didn’t exist before. The key to Apple’s success was that those gadgets differed from their competitors a lot in terms of quality, functions, product placement and, what’s even more crucial, in terms of design.

apple marketing strategy

How did design help?

When it comes to Apple, a product design is one of those tiny but significant details that make people wait in lines to buy those unique gadgets. With the help of its design, this brand makes people think different and choose the exquisiteness to escape the routine.

Price-skimming strategy

This business strategy is rather risky and is perfect for those who like “skimming the cream”. In simple words, you set a large price for your goods that allows you to cover your marketing expenses faster and in a more efficient way. Sounds simple, however, there is one small detail: you also need to make your customers buy your products or use your services when the price is much higher than one could ever expect. In this case, design will be exactly what you need.

The price-skimming business strategy was pursued by lots of international conglomerates; Porsche didn’t become an exception. They were willing to understand what people were ready to pay for – and how much. That’s why their new SUVs soon enough became a symbol of luxury and comfort.

porsche price skimming strategy

How did design help?

When it comes to luxury, exquisiteness, and other benefits, design is the only tool that can implement those perks in life and connect them with the products or services your company offers. Which is when the product design along with advertising materials get in the spotlight one more time. Without creative design solutions, the price-skimming strategy simply cannot be implemented.

Bottom Line

Whenever you think that design is just a part of making your products or services appealing to customers, remember such business titans as Porsche, Apple, Tesco etc. These companies never ignored the importance of design, implementing it in their business strategies. As a result, it was one of the key factors that helped them to earn more money and secure their footing on the world business market. We do hope that design will become as much important and beneficial for your business as well. DesignContest will make sure of that.

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