Came across a very interesting book – “Killer Differentiators: 13 strategies to grow your brand” by Jackie Tai and Wilson Chew. It talks about the need for every product to stand for something in the minds of the people. Some examples:
Ebay – online auction
Dell – Direct to customer computers
Zara – Just-in-time fashion
Oracle – Database software
Visa – Credit cards
Red Bull – Energy drink
The idea that is stressed is that one can’t find a strong brand from among those that take a middle-of-the road approach. Your brand can’t stand for everything because the human mind needs to be able to categorize things for easy reference. A brand that stands for everything will have a lot less credibility. A positive perception (of the brand) is critical to the success of the business and for that to happen your brand has to stand for something unique.
One of the messages (my interpretation) is that it need not be the case that one has to create a completely new category to differentiate. But brands have to create a unique perception within the category. Automobile (though these are very bad times for the industry) is a classic example of how the companies though competing on the same category (selling cars) have created a unique positioning. Toyota is known for reliability, Volvo is known for safety, Ferrari for speed, BMW for performance, Maruti Suzuki for value-for-money etc.
The 13 differentiation strategies are:
- Sales Leadership
- Technology Leadership
- Performance Leadership
- Next Generation Product
- How it is Made
- Where it is Made
- Attribute Ownership
- Opposite Position
- Personality
- Specialisation
- Preference
- Heritage
- Design
There is a lot more information in the book than what is mentioned here. Do read it if you are launching a new product or starting a new company.
