Effective Product Differentiation Strategies for a Foodservice Business Targeting the Generation Y in Thailand

Abstract

Differentiation strategy is one of the generic strategies for acquiring competitive advantage as proposed by Michael Porter. Rather than minimizing cost, the objective is creating meaningful value for the consumer in order to create and sustain a withstanding relationship. This paper explores the application of this competitive strategy on the foodservice industry targeting the Generation Y demographic in Thailand. The goal is to decipher factors that are most effective in proposing a concept as unique in quality and novelty in the perception of consumers based on available evidence. Findings suggest that "social aspect", "aesthetic design", "environmental sustainability", "health", "type of cuisine", and "reputation of ingredients and chef" are logical bases for attaining a differential advantage in the market. As a demonstration of applying key findings, an original marketing plan is developed to sell a modern Thai restaurant concept to this target audience.