10. Add services
The discounter can tempt customers with low prices by cutting out services. An example is Lidl, one of the top ten food retailers in Germany, which has a philosophy that you only pay for what you get. This means that customers pay for carrier bags, have no shopping baskets on offer and must pay a deposit for trolleys. If the discounters strip out service, the competitive answer is to add differentiating services.
How it works
Porsche is the leading motor industry brand by margin, earning a higher return per vehicle than any other marque. In the face of lower-cost sports cars from other respected car companies, what benefits could Porsche offer to secure the loyalty of their drivers? Understanding emotional anxieties can uncover ...
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