Market Structure And Increased Product Differentiation
Ways of increasing product differentiation based on market structure in Larson Inc.
The most appropriate way of increasing product differentiation at Larson Inc. is taking advantage of knowledge information to increase awareness of their batteries such that the market structure will be enhanced. Alternatively, the company should improve on its packaging as some customers usually opt for products which come in attractive packaging. This could be enhanced by identifying colorful and catchy packets for their batteries which are unique with a lasting effect on the customers.
Owing to the fact that most customers will always opt for products which are sold in unique packets such that the brand of the product may be different but due to the attraction caused by the packaging, a customer will end up buying the same (McConnel, Brue and Flynn, 2008). This will especially increase product differentiation in America due to the presence of a larger population than Germany hence more customers may be obtained this way. Improvising on the branding of the packets to include more information on the batteries is quite efficient as potential customers will get an opportunity to learn more about the product.
The corporate office should venture into online marketing other than rely on print media for its advertising. This will go a long way in creating awareness on the presence of the batteries in America as well as in Germany hence a wider market will be reached at very low cost. Consequently, the corporate office will have an easier time as online advertising is void of geographical and demographical barriers such as the lower population in Germany. This makes it the best option of increasing product differentiation (McConnell, 2008).
McConnell, C., Brue, S. and Flynn, S. (2008), Economics: Principles, problems and policies. 18th ed. McGraw-Hill/Irwin Publishers.