How to differentiate your products from competition without undermining their products?


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Context   (Selling a Product)

Two companies one is German company another is somewhat franchised from Europe selling similar products.
Huge difference in price as quality difference is there and German company using 100% german manufactured components and another one using local or sub standard material. Still while buying people are arguing about price difference as Why Mercedes Benz is Premium?
and why Maruti is cheaper than a Benz



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