Dimensions of differentiation
Differentiate. Decommoditize. Zag. Conventional brand strategy wisdom dictates that in order to succeed, a brand must set itself apart from the competition. Examples of differentiation-driven success abound, and in fact most of the support for differentiation seems to be delivered through case study or anecdote.
But what do we mean when we say “be different?” Telling stories about brands that have succeeded by standing apart from their competition may support the point that differentiation works, but it leaves something to be desired when consulting with a client on how they can differentiate their organization. Instead of listing examples, I wonder if it’s possible to think more systematically about the dimensions along which a brand can differentiate.
I use the word “dimensions” because brand consultants (including me) are often guilty of simplifying everything down to a two-dimensional graph, plotting the competition on the axes, and pointing out where a client has room to stand apart. To illustrate, here’s one of my favorite two-axis graphs from xkcd.com, poetically entitled “Fuck Grapefruit.”
(I can hear the conference-room conversation now…“Our new product combines attributes of the peach and seedless grape in order to outperform all existing fruit in both tastiness and easiness. Ladies and gentlemen, allow me to introduce the pit-less peach.”)
Of course, when used to plot out brands rather than fruit, this format implies there are only two dimensions along which a given company or product can differentiate itself. And while part of our job is to simplify the situation, what if the way to really make an impact is to move off the page, along a third dimension that none of the competition have considered? Multidimensional “brand maps,” aside from being nearly impossible to interpret, still don’t necessarily satisfy the goal of covering all the bases. What if the dimension we’re forgetting to think about is the one that will really make our brand distinctive and compelling?
With that thought in mind, here’s the beginning of a list of specific ways companies can differentiate. (Examples are consumer brands, but the same principles apply with B2B brands.)
1. Introduce a new feature/benefit.
A great example here is the Nintendo Wii. While Sony was busy trying to prove that “ours go to 11” with their Playstation 3, Nintendo was about to change everything with their new controllers—a way to make gaming more fun, instead of more impressive.
Worth keeping in mind, however, is that just because a new feature may fill a gap doesn’t mean anyone will want it—a thought more simply stated by Stephen King (the account planner, not the horror writer):
If we are not careful, Gap Analysis is a very elaborate machinery for saying that if there is already a market for hot coffee and a market for iced coffee, the gap for us is in selling warm coffee.
2. Serve a customer niche.
Keep in mind that this could be a demographic (age, gender, etc.) or psychographic (preferences, behavior, etc.) niche. Scion does this by appealing to younger car buyers—achieved partly with lower prices—but also appealing to a specific psychographic group—achieved by inviting customization, for example.
A new energy drink I’ve heard advertised on the radio is attempting this as well, by targeting females.
3) Align with a cause.
TOMS Shoes not only aligned themselves with the cause of providing shoes to children in need—they built their business model around it. Talk about a “brand-driven business.”
Other examples include The Body Shop, Pedigree, Häagen-Dazs, and more.
4) Exude a unique personality.
Why has JetBlue been such a great brand story? It’s not just the TVs (although that fits #1, above). JetBlue considers every customer interaction an opportunity to express a friendly, slightly lighthearted personality. Call to book a flight and listen to their automated system. Compare it to one of their competitors (the ones where you have to look at your ticket stub to remind you which airline you’re flying).
Charles Schwab also achieved this with their “Talk to Chuck” campaign.
5) Simplify.
What better example than Google’s homepage? ‘Simplicity’ is a value that Google has carried through to their webmail, maps, calendar, and more.
Apple has also tried to own the idea of simplicity among their competitive set. Of course, simplicity is not unique in every industry, but watching this “if Microsoft designed iPod’s packaging” video helps demonstrate how differentiating it can be.
This list is just a start. How would you edit the list above, and what would you add to it?
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I don’t think there can be a ’systematic’ approach to finding out how to differentiate your brand in a cluttered market place. Sure, there can be a list of all the different things which ‘could’ be done, but a list wouldn’t necessarily help us much. It depends A LOT on the CONTEXT of the market place as well as the place the brand itself finds itself in. the differentiation strategy could range from anything between price changes and discounts to line extensions and launching entirely new brands.
For each case it could be different and a list would help us identify which elements we need to go with, but ultimately there would need to be an analysis of all the various factors involved before any real action is taken to ‘differentiate’.
Muhammad,
Great point. I agree that following a systematic approach can be limiting and obscure opportunities to do something new. But I do like the idea of having a ‘toolbox’ to turn to that helps ensure you haven’t overlooked directions that other brands have already used successfully.
What I’m really hoping to do is simply organize these anecdotes of success-through-differentiation so that we can at least think about them categorically as opposed to individually. If, for example, JetBlue and Charles Schwab have used a similar technique—uniquely friendly brand personalities—to stand out in their respective industries, I think seeing that connection between the two situations is the best way to learn from it and potentially do something similar in a different industry. (Whether or not they’re using the similar techniques is debatable, of course, and whether or not doing something similar elsewhere makes sense depends on context, as you’ve suggested.)
I’m never a fan of statements like “there are X ways to differentiate your brand.” The second we limit ourselves that way is the second we give up on real creativity (it also devalues us as brand consultants). But I wouldn’t mind being able to say “if you’re at an impasse and looking for a way to differentiate from competitors, here are X ideas to consider.” I’m trying to build a taxonomy of ideas to use as thought starters, I suppose.
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Dead on. “How” and “why” need to be connected, more so.
And in line with your post awhile back, the cultural zeitgeist needs to be considered because the zags are relative to the times. An analysis of trends, stresses and shifts in preferences will affect WHY certain zags root faster. That said:
1) Value = the new black
Consumer spending, even on sale items, continues to be replaced by a reason-to-buy at all. Brands with no authentic meaning are in some trouble, whether high-end or low.
2) Brands are increasingly a surrogate for “value”
What makes goods and services valuable will increasingly be what’s wrapped up in the brand and what it stands for. Why J Crew instead of The Gap? J Crew stands for a new era in careful chic — being smart and stylish. The First Family’s support of the brand doesn’t hurt either.
3) Brand differentiation is Brand Value
The unique meaning of a brand will increase in importance as generic features continue to clutter the landscape. Awareness as a meaningful market force has become obsolete, and differentiation will be critical for success.
4) “Because I Said So” is over
Brand values can be established as a brand identity, but they must believably exist in the mind of the consumer. A brand can’t just say it stands for something and make it so. The consumer will decide, making it more important than ever for a brand to have measures of authenticity that will aid in brand differentiation and consumer engagement.
5) Consumer expectations are growing
Brands are barely keeping up with consumer expectations now. Every day, consumers adopt and devour the latest information, technologies and innovations. Smarter marketers will identify and capitalize on unmet expectations – these shift but can be discovered.
6) Old tricks don’t work/won’t work anymore
In the wake of the financial debacle of this past year, people are more aware than ever of the hollowness of bank ads that claim “we’re all in this together” when those same banks have rescinded their credit and turned their retirement plan into exec bonus money. Celebrity values and brand values need to be in concert, too, like Tiger Woods & Accenture. That’s “authenticity”.
7) It’s not just buzz – it’s community.
Conversation and community is all; eBay thrives based on consumer feedback. If consumers trust the community, they will extend trust to the brand. Not just word of mouth, but the right word of mouth within the community. This means the coming of a new era of customer care. And more in tune semantics!
There’re four engagement methods: Platform (TV; online), Context (Program; webpage), Message (Ad or Communication), and Experience (Store/Event). But there’s only one objective: Brand Engagement. Attaining real brand engagement is impossible using outdated attitudinal models.