Question

Consider the many means of differentiating products and services. Which ones have the most impact on your buying decisions? Why? Bring an example of a brand that excels on this front.

Answer 1

Horizontal distinction relates to some kind of distinction that does not apply to the quality or price point of the commodity. Around the same price point, those items give the same thing. In making choices about horizontally separated goods it always depends on the personal choice of the consumer.

Unlike horizontal differentiation, the vertically differentiated goods are highly price dependent. The price points and quality marks are different with the vertically separated goods. And, there's a general assumption that if all the options were the same price, there would be a straightforward winner for the "best." Often called "easy differentiation," mixed differentiation refers to differentiation based on a combination of factors. That sort of distinction is also lumped in with horizontal separation.

While most makeup brands focus on mass producing their products and using whatever ingredients it takes to get the desired effects, Lush paves a path of its own: all of their products are handmade, completely vegetarian, mostly (80 per cent) vegan, never tested on animals and created with ethically sourced ingredients.

The crazy thing is, it sounds more like what you would expect to read about a high-end restaurant than a makeup brand, but that is what makes Lush different. I know that there are plenty of women who, while trying to look beautiful, are sick and tired of all the chemically laden cosmetics, side effects of mass manufacturing and cruel animal testing that is rife in the beauty industry

Instead than chasing a luxury brand appearance common to makeup brands, Lush focuses on quality and ethical ingredients. Their integrity and trust in their products considering that everything is up for in-store sampling so you know you don't get duped draws customers into their exclusive stores and makes them stand out from the loads of brands in their room. Lush is on the rise, with more places continuously opening up around the world. We have crossed the $1 billion mark in annual revenue, and while they've only been around for 22 years, they've already ascended the ranks of becoming a global beauty brand, sitting pretty at 34th place. If you find Nivea, a brand that is over 100 years old, to be ranked 5th at the moment, Lush is catching up very quickly for its age.