Digital transformation and strategic differentiation of craft brands through Phygital tools and Lo-Fi content
DOI:
https://doi.org/10.5281/zenodo.19582006Keywords:
digital differentiation, craft brand, Phygital tools, value proposition, authenticity, Customer Journey, Lo-Fi contentAbstract
The article reveals the peculiarities of the strategic differentiation of craft meat brands in the context of digitalization and modern market challenges. It is noted that local producers are more vulnerable to competition from mass-market players. The expediency of using Phygital tools and Lo-Fi content is substantiated. Goal: theoretical substantiation and development of practical tools for a craft brand's digital differentiation strategy based on creating a unique value proposition through the integration of physical product characteristics and digital consumer experience. Materials: the information base and theoretical foundation of the study were the fundamental works of leading domestic and foreign scientists dedicated to strategic marketing, competitive advantages, and the digital transformation of business. Methods: terminological and comparative analysis in processing the definitions of "differentiation" and "craft brand"; theoretical generalization and systematization to identify the key philosophical principles of craft business; classification in grouping digital marketing tools by their functional purpose; logical modeling to justify the transition from Porter's classical differentiation strategy to a modern model of a craft producer's Customer Journey digital transformation; abstract-logical method for forming author's conclusions regarding the role of Lo-Fi content and Phygital tools as means of leveling the advantages of large corporations. Results: the competitive environment in which craft meat productions operate is outlined, emphasizing that they should offer types of products that are not only traditional and authentic but also meet modern standards of environmental friendliness and ingredient transparency while preserving craft recipes. The development trajectory of a local brand is defined, allowing the enterprise to maintain loyal customers, hold their attention through digital communication channels, and simultaneously attract new audiences by guiding them through all stages of the marketing funnel using Phygital tools. The criteria for segmenting the craft market target audience and methods for their analysis are listed, particularly based on identified factors of freshness and trust. The possibilities of studying consumer motivations using the Job Story template are considered, which, combined with the implementation of a TikTok strategy and Telegram bots, ensures the formation of a unique customer experience and the brand's ability to differentiate itself from the mass market in the digital environment. Conclusions: conclusions are drawn regarding the possibilities of strategic differentiation and methods that should be used in the activities of craft meat producers. It is emphasized that business owners must understand the true needs of the audience and use digital channels to broadcast authenticity. For the deep organization of a marketing strategy, it is necessary to implement Phygital tools and Lo-Fi content, which allows building trust through "behind-the-scenes" production. In our opinion, the most effective is the Customer Journey digital transformation model, which combines the physical quality of the product with the interactivity of messenger marketing and TikTok strategies, ensuring differentiation from the mass market even under limited budgets.Downloads
Published
2026-04-14
How to Cite
Lykholat, S. M., Hryniv, N. T., & Kuran, M. R. (2026). Digital transformation and strategic differentiation of craft brands through Phygital tools and Lo-Fi content. Current Issues of Economic Sciences, (22). https://doi.org/10.5281/zenodo.19582006
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Section
Marketing
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Copyright (c) 2026 Світлана Михайлівна Лихолат, Наталія Теодозіївна Гринів, Мар'ян Романович Курань

This work is licensed under a Creative Commons Attribution 4.0 International License.