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The Branding Process - Differentiation

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By Roger Griffin, Associate Partner
FOCUS Business Marketing Intelligence

3 Keys to Successful Brand Development: Segmentation, Differentiation & Positioning

Last issue we looked at Segmentation ... one of the 3 most important considerations you will need to explore and define in your development of a successful brand. Today, we look at the second key factors:

Differentiation: how to compete

Your challenge is to determine not just how you’re going to play the game, but also how you’re going to win. In other words, how to differentiate your Brand and create an important and meaningful point of difference.

Start by identifying the Tangible Differences between your Brand and the competition; i.e., the conscious, rational benefits you can focus on. For example:

• Service (Nordstrom);
• Price (Costco);
• Selection (Toys ‘R’ Us);
• Performance (Nike);
• Contemporary home fashion (IKEA);
• Great Price (Payless Shoes).

Now move on to the Intangible Benefits - those emotional, sub-conscious benefits you want your Brand to own. This includes things like status (Tiffany) or badge value (Virgin). It is these intangible benefits that are becoming the most important leverage for Brand dominance.

1. Your Brand must be perceived to be unique.

   To create a substantial differential advantage in your Brand, you must first create a point of difference in the way customers perceive your Brand - one that is so successfully unique in the minds of your customers that no other brand can substitute for it.

   Uniqueness does not in itself necessarily motivate traffic, sales or repeat visits. Nevertheless, it must be perceived as being unique, before any other values can be attached to it.
    

2. Your Brand must be important to your core customers.

   Many retailers assume that the most important benefit is Price. This is true for some customers, but for many others, Price is only the beginning and for most, it is an unsustainable competitive advantage.

   Competitive prices are the ‘greens fee’ that allows you to play in the game; but to win, you need much more, e.g. product mix, service, look, and marketing, all important options you need to re-examine to help determine where you want to dominate.
    

3. Your Brand’s point of difference must be delivered and sustained with style and substance.

   Together, these three factors will help you to achieve a compelling, competitive advantage that delivers a superior customer benefit and can only be challenged by the competition over a long period of time and at great cost.

Some Options for Brand Differentiation:

• Lowest prices
• Full-service
• Biggest selection
• Newest, hottest, with it, in
• Best overall total experience
• Status
• Most convenient, easiest
• Badge value
• Quick service
• Best overall value

Special thanks to John Torella of the J.C.Williams Group for his pioneering work in the art of retail branding.

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