Case: Josiah Wedgwood Essay

665 words - 3 pages

It is never enough to create a great product; it has to be coupled with a desire for that product. The competitive advantage that Wedgwood brought to his company was the ability to create demand for goods. He was able to see the needs of the market before the market did and then cultivating market demand to satisfy those needs with his goods. A differentiation strategy was put into place by Wedgwood for his products as there were already a number of pottery options available on the market. Instead of the low quality, irregular options that were available on the market, Wedgwood’s pottery was made from clay, rather than wood, and was a more uniform finished product. A method of increasing demand by raising the perceived value of the pottery is to drive up demand by the high affluent. One of the ways that he accomplished this was through a technique called inertia selling. By putting a high quality and reputable product in the hands of the elite with no penalty, Wedgwood can display first-hand his high-end craftsmanship and design. With the working class working in the homes of nobility, they got to see firsthand the luxurious goods produced. Once the word spreads that the pottery is coveted and purchased by the wealthy, the value of the brand increases. Wedgwood, by putting his name on each piece of pottery created, signified that the quality was worthy of personally attesting to. Furthermore, upon recommendations of his wife Sally, innovative enhancements were added to various pieces of their pottery. For example, the lids of teapots or bowls for sugar were plain and undecorated to this point. After seeing the missed opportunity by those who entered the market first, Wedgwood capitalized on the demand of the female population through enhancements by her targeted suggestions. He knew that that his target audience was the middle class that desired higher quality and status. The look of fine china could come close to be mimicked through the use of slightly lesser quality material, something that the middle class...

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