This document discusses branding and differentiation strategies. It begins by looking at the current situation and explosion of choices consumers now face. Effective differentiation finds a unique selling proposition that competitors cannot match. Differentiation is in the mind of the consumer based on how a brand is perceived versus others. Steps for differentiation include finding a differentiating idea, having credentials to support it, and clearly communicating the difference. Various differentiation strategies are then outlined, such as being first to market, owning a unique attribute, demonstrating leadership, heritage, specialization, consumer preference, production methods, innovation, and perceived "hotness". The document closes by noting that effective differentiation often requires sacrifice.

1. confidential
Branding and
Differentiation

2. Branding
Differentiation
Agenda

3. Current Situation – Who are We ?

4. 4

6. 6

9. 9

11. 11

12. 12

18. 18
What do you
perceive the
XXXXXX
brand to be?

19. 19
DIFFERENTIATE
OR DIE

20. 20
Explosion of Choice
Item Early 1970s Late 1990s
Vehicle Models 140 260
Bottled Water 16 50
Levi’s Jean Styles 41 70
Contact Lenses 1 36
Soft Drinks 20 87

21. Unique Selling Proposition
Buy this product and you will get this specific
benefit
Competition cannot or does not offer.
Must be unique or a claim not otherwise made
in the field
Must be so strong that you can pull over new
customers
Rosser Reeves, circa 1960

22. Psychology of Choosing
Intuitives
• Big Picture – ‘next generation’
Thinkers
• Analytical, precise, logical –
‘ergonomic design’
Feelers
• Feelings of others – “choice of
experts”
Sensors
• Just the facts
Samurai Selling, Karen Sage 1995
Choosing amongst multiple offerings is based on differences

23. What is Differentiation ?
Differentiation is about how your
Prospect perceives you with
respect to the competition
It’s in the mind of the Prospect

24. 24
Product Positioning & Differentiation
Positioning is NOT the same as Differentiation
Positioning is a statement that distinctly defines the
product in its market and against its competition
over time
Differentiation is about how your Prospect perceives
you with respect to the competition – It’s in the mind
of the Prospect

25. 25
What Makes Differentiation Difficult
?
Quality and Customer Orientation
• Customers expect this from you and your competitors
Creativity
• Too vague
Price
• The enemy of differentiation - Not sustainable
Breadth of Line
• Too easy for competitors to copy you

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Steps for Differentiating
Logical Argument
• Cogent, Compelling, Convincing, Valid, Clear, Showing Skill in thinking or
Reasoning
Make Sense in the Context
• What’s the Marketplace heard or registered
Find the Differentiating Idea
• To be different is to be not the same. To be unique is to be one of its kind
Have the Credentials
• How can you demonstrate your credentials
Communicate Your Difference
• You can’t over-communicate your difference

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How Can I Differentiate ?
Being First
Owning An Attribute
Leadership
Heritage
Market Speciality
Preference
How A Product Is Made
Being the Latest
Hotness

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Being First
Minds don’t like to change
People feel the first is the original
Once you’re first you have to stay first

29. Owning An Attribute
Characteristic, peculiarity or distinctive feature
Products are a mixture of attributes
What makes a product unique is being known
for one of these attributes
Sometimes the opposite of an attribute works
Using a negative attribute for your competition
BMW driving
Volvo safety
Mercedes engineering
Jaguar styling
Toyota and
Honda
reliability
Ferrari speed

30. 30
Leadership
The most powerful way to differentiate
People buy what others buy
Sales Leadership
• Toyota Camry best selling car in America
• Ford Explorer top SUV
Technology Leadership
Performance Leadership

31. 31
Heritage
Natural psychological importance
A substitute for leadership
BTW You can use a competitors heritage against
them
Most American Vodkas look Russian
Stolichnaya is different. It is Russian

32. 32
Market Specialty
People are impressed with those who
concentrate on a specific activity or product
Perceived as Experts
BUT sometimes there’s too many specialists

33. 33
Preference
What other people think is correct
Better when your claim stands up to scrutiny
Lexus and JD Power

34. 34
How a Product Is Made
Magic Ingredient – often patented
White Castle hamburgers

35. 35
Being the Latest
Don’t be better, be next
No one wants obsolete technology
Intel…286, 386, 486, Pentium….
Don’t solve a non-existent problem
Don’t mess with Tradition
It must be better

36. 36
Hotness
When you’re hot, the world should know you’re hot
People are like sheep – they like to know what’s
hot
Ways to be hot
• Sales
• Industry Ratings
• Industry Experts
• The Press can make you hot

37. Differentiation
Often Requires Sacrifice