Product differentiation for competetive strategy and a sectoral application

Firms have to be innovative and creative in order to survive within highly intensive competitive environment among all industrial branches. The days that firms produce the same kind of products for all customer needs has been ended. At this point the major problem firms have to face is satisfying endless customer needs and expactations with limited sources. The classic question that does the market structure could help the efficient use of sources, becomes more important when the increase in production of similar type of goods and increase in their variety were taken account.Product differentiation is a very powerfull tool when it is analysed in modern marketing approach that, it is the fundamental need for economies and it is very necessary for firms to survive and take a good advantage among rivals while satisfiying customer needs and expectations by the help of different products that are not present before them. The key for success in market is, having unique and qualified goods for customers.The aim of this master thesis is to determine whether it is possible to change the form of special traditional Turkish desert tahin halva by the help of product differentiation and to create a sustainable competetive strategy that based on product differentiaon in desert market.This research is composed of three chapters. In the first chapter, market, marketing mix, product and product life cycle subjects and some other related subjects were covered.In the second chapter, the topics that are related to new product devolopment and product differentiotion, classical new product devolopment process and other new approaches were covered. Lastly in this chapter, generic competition strategies and three generic competion strategy ; overall cost leadership, differentiation and focusing topics were examined.In the third chapter that is intended for reserach, products classic halva and differentiated product helva with hazelnut paste and hazelnut, which are produced by Arbil Helvacılık Gıda San. ve Tic. Ltd. Şti. , are tested in order to search their position in consumers mind and is it possible to construct a competitive strategy based on product differentiation by the help of survey technique. Additionally recommendations and comments were also covered in this chapter.