Archive for the ‘Differentiation’ Category

Successful differentiation

A successful differentiation is not imitated by competitors, even if it brings you proven success with consumers. Sound impossible? Not exactly. I’m about to show you the secret unexpectedly simple and wonderful to successful differentiation: you must think the most important benefits of your product category. Think: Off-Core Differentiation.

“Basic security are the benefits that consumers already expect from a product like yours. Here is the list of” what is important for the consumer. “The advantage of the base” are the main benefits of the product. The main advantages of mobile phones today are much more than the ability to make conversation while driving. All this, consumers had already expected that the product is included in the basic benefits. They are offering benefits to all its competitors, and the core of the product and can not compete without them.

Precisely for this reason, if you really invest your efforts and are very bright and make a step forward in improving basic services – do you know what happens? You can follow quickly. That’s what happens. You have to understand: in this case, their competitors can not afford not to imitate. You could do the same thing.

Many companies have learned this way the hard disk:

Starbucks believes that coffee shops would be more comfortable and more like a neighborhood meeting place where all the chairs are not identical, and when he chairs and sofas. What a great idea! Today, it is found in almost all bars in the world.

Colgate Palmolive combined all the known benefits of toothpaste and created a whole. Innovation caught at all. I would venture to say he does not have a producer in the world, not imitate the idea, the first peak of P & G.

Safety: Volvo has made its mark on a benefit basis. They have done everything humanly possible! Investment without limits! And they did! Particularly successful in the competition so convincingly that it is very important to invest in security. Today nobody can say (with the exception of a few marketing exceeded), that the safety of the Volvo differentiation.

I could go on indefinitely, but I think I got the message. What should I do?

To create a distinction that can not be imitated, you have the greatest benefits (or potential) are considered important to keep its market. It works again and again. Companies that have managed to maintain their differentiation over the years and does not follow, even if they make huge profits are those who renewed qualities beyond the main benefits of their market.

Naked differentiation

In Canada, there is a newspaper that, under the authority offers no less than Time magazine, the best international coverage this side of the BBC. “The company is called Naked News, and news and current affairs more optimistic than 172 countries through the Internet and reaches a weekly audience of 34 million U.S. and many other millions of viewers in the United Kingdom, Australia and some other countries in the world. Naked News is also available as VOD over 1.4 million hotel rooms in North America, the Caribbean and Europe. The Naked News content is a day of mobile phones and portable devices. Naked News products cable / satellite and digital and licenses available in English, Spanish and

French retailers.

Most of what executives and other employees of the company is not exactly the message that their colleagues do in every newspaper in the world. But Naked News has a little something done differently, so some viewers to see (and pay a higher price!) You prefer. Tagged “The channel has nothing to hide,” Naked News attractive “are still people (and women, mostly young men) in politics, economy, sports and entertainment – all naked.

Differentiation in no connection with the main advantages of a newspaper. What they do to other sounds strange, even shameful and unrelated to their competitors. And therefore the chances of someone as they are small.

Now think about Apple. First, the differentiation of the operating system is easy to use with. This is very important to the customer! How are computer users more and more ordinary people and not for equipment, ease of use to a major focal point advantage. Microsoft could afford to imitate? Of course not! In recent years, Apple has changed course. However, differentiation seems designed for a sophisticated design, an approach to the computer as part of the Office is based, when the handset is part of a program. Is anyone in a hurry to emulate? Not really. In general, computers are less ugly, but not a significant competitor sees its computers as an opportunity for designers to get in the way Apple has wild.

What are you waiting for?

Virgin Atlantic is one of the examples that I like. When an airline (in the usual sense) is not better than other companies. No planes or more comfortable seats. It is very often not fly faster, better, do not serve food or offer a better planning of flights with British Airways, for example. But it is a company that almost always do things differently. But keep in mind – none of them relate to basic services in the category of “carrier”.

The result: although Virgin Atlantic has been successful for several years and has taken a lot of market acceptance and customers of its competitors to imitate British Airways is not. Why? Because Virgin Airlines seems ridiculous! (Remember: do not do things that are essential to the consumer) serious people at British Airways, say: “A massage on a flight from Who wants a massage on a flight that weirdo in the field of massage on Virgin Atlantic flights – is convenient for them!

Need more examples?

Swatch decided to treat the face and the group as a field of design. What to do with the main advantage of a clock? Exactly! So nobody has copied.

What about The Body Shop? There is no place for another cosmetics chain that actively fight against animal testing, the environment and for people in need, wherever they are. Nobody thinks of them to imitate.

The crowd and the mobile

Sometimes, on the basis of differentiation may ultimately be a big advantage. What happened to Nokia. This occurs when the differentiation is not really wacky, but it’s actually on a thorough understanding of market direction is in progress and future needs of consumers. Nokia has hit the world market with a classic approach in the nucleus. While Motorola was busy developing a better and more mobile phones, mobile phones would, Nokia envisions a popular product. If the people who bring the phone with them as they begin to go about their daily business, it is a garment, a fashion accessory. And so does the idea that Nokia is the world leader was born helped – the idea of ​​removable disks, you can customize your phone to your clothes. It appeared to be a significant advantage of class time. Completely independent, to make a phone.

But if the technology of most mobile phone manufacturers like, began to compete for framing. Samsung has started to beat Nokia, with their own weapons. Recently, Samsung has joined with Vogue magazine and the designer Diane von Furstenberg are, in an attempt to put the phone in fashion. As I write, from Nokia on the market two times higher than Motorola (note that the advantage of Nokia to open in the situation? War), while Samsung is behind them. But Nokia has lost its differentiation.

Today, Nokia is looking for a new differentiation outside the nucleus, has been found yet. As a leader in the competition for the mobile phone as an entertainment center. This idea came naturally to the development of 3G technology, making it a significant advantage in the category. The sale of camera phones and 3G sales, the gap between Nokia and Motorola closes. What happens next? Time will tell.

We can say that few companies have leaders in the differentiation of nuclei. Not discuss this “more” and that “few.” In fact, most companies have never recommended, nor the need to develop. However, if you’re in a competitive market and try to live a strategy for go outside the base, the better chance you have to get a group of consumers a good reason for the dedication you want, and even a private monopoly given to them.

Open a window

I’m not trying to argue that the distinction between the main benefits is a bad idea if you can. A window of opportunity for you to begin to imitate them. For a man like Michael Dell, which was enough to become a billionaire. Dell has sold their way to the PC has changed. Michael Dell understood that from the time the personal computer (IBM clones with one hand and the vision of Microsoft in the 1980s, however) Standard – people buy the phone and on the web. Dell also understood that due to the normalized components of the personal computer anyway, you can put together to meet the needs of each user. It was not an off-core differentiation. Dell simply because they are the most important trends. Today, all computers are sold this way, but time had made this distinction in the world’s most brilliant.

During a query language called recently with a new client, they said their main concern is that a good transport network, but sales. I’ve seen a thousand times. Normally, what I think is a place full of content that is full of words and repetitive noise is stupid. The solution is simple: a natural sound, SEO convincing copy that attracts customers to buy. But customers of the site does not fit the stereotype.

Copying the page needs a little work, but it was terrible. The pages of the category and subcategory had copies of everything that needs to be repaired. The descriptions of the products is maintained (by the manufacturer.) While it is certainly not the best way to go for various reasons, not the death penalty. But for a site – a new brand – several hundred visitors a week and not a sale has been frustrating.

Consider some data. Low bounce rate, number of pages viewed per visit, the length of time acceptable to the site. Quotes lot to be desired, but it came together, sometimes with some modifications and some links.

As you approach your pages in the website indicated. the absence of differentiation: This site has been a common curse of e-commerce merchants.

Why should I buy from you?

In general, most supermarkets carry almost the same things. So how do you decide where you purchase most often? It was probably due to the location of the store. Online, we do not have this advantage.

If e-commerce merchants carried the same voices of hundreds or thousands of other sites that customers are comparing a hard time deciding which to buy. Most of the time, is the price. Since my client is not your site will be considered the best connection, which had lost the advantage of location and price.

After providing the search through dozens of websites, the same products, the Internet has no way to answer that burning question: Why should I buy from you?

The identification of points of differentiation

As our tour continued, I asked questions – many questions – to help the effort to find my client through individual and / or better than the competition were.

>> Do you offer free shipping or reduced costs (with or without minimum order)?

He did, but said not on your site. There is an element of differentiation. Online shoppers love free shipping.

>> Any offers?

He did, but does not explain clearly. He made a note alerting her PhD on the home page.

>> There are reductions in the volume?

He did, but the link to the copy that the discount has been declared hidden in his place. We talked about adding a few words for the price of the fee for visitors to learn about discounts.

>> Can you tell me the wish list function? What happens after someone adds an item to the wish list?

He did not, then we went through the process and creates a backup plan for the strategic location to attract visitors to add items to your wish list. Then, we discuss the details of the making of copies of a number of automatic response to people who had created a wish list, but never ordered.

When our time is up, we have a number of action points to work on your site to differentiate from competitors identified. Of course, each tested to see what works best to achieve their goals. But it is now occupied and monitoring of adjustment, instead of scratching their heads.

Which to me recently over lunch in a local Grill Moe’s Southwest, a new phenomenon is the restaurant scene in the form of bad attempts expanded to differentiate itself from its competitors – to rename the business conditions Acquired pseudo cute. This is clearly visible in the field of food faster and it is increasingly common as businesses struggle to communicate with consumers to create loyalty and / or preferred shares.

Moe is a good example. Personally, I think we have to offer a great product, but they left and to confuse the “Twat” to be stupid with silly nicknames for their meals and they serve only to frustrate customers. It is easy to see that the idea is behind the scenes, but the risk of attempted product differentiation. You’re strong competition for franchises such as Qdoba, Baja Fresh, Chipotle, Labamba, Taco Bell and Tijuana Flats, need (and many others), but no translator competitor for a simple burrito or taco . Try one of these places that you stop day and night for a “Joey,” or ask “Alfredo Garcia”. Can be obtained with three heads (rightly) considered.

What is a franchise differ from trying to use childish insults? It’s probably a good excuse for a manager of a marketing concept is the individual competition, but this is not the kind of separation that allows the notion of long-term success. Ultimately, the separate right – the competition is to win the starting time stunt, on and off by complaints from consumers who prefer the perspective of competition, even if all other factors are relatively equal.

Sure, it looks very good today, Moe, and the concept seems to be “cool” today, but that could change in an instant without warning. The current growth could be compromised by a false step, because there is less room to move when you try to satisfy their customers to form their concept. What if consumers collectively said, “I’m in no mood to Moe?” Maybe “nice” set aside the desire to really different (ie better)?

Do not get me wrong, there are many positive things. The restaurants are well established, the decor is modern, the lighting is adequate and the food is delicious, not to mention at a reasonable price. The physical environment is elegant and welcoming. He is also obvious negatives. Employees are called together to: “Welcome to Moe!” at the height of his lungs as a new customer does make me want a business for some time to open. I can not wait to get outside, so I do not know more than me. I want to thank some peace and normalcy Moe with my food.

Atop the time Moe’s frustrating, of course, emphasizes cram into the jaws of private consumption, correcting the customer for the order of ingredients you want rather than his nickname. You’re not my training, Moe’s food supply is suspected of high quality fast and I’ll ring the cash register – I was not right, just boil, take the money and let me eat in peace !

Moe is not alone in this feeble attempt of differentiation and not the last, but the lesson is just to keep that customer service – customer service. The customer pays for what I do not think he will inform the customer if the equation is structured this way. If you pay people to start your franchise or business trip, you’re good to try to train them right, to do business with you. Stick to business and industry dictate to develop a better way of doing things. Then and only then make a real difference. Just change the name of a common element or process does not make you different – it does the opposite. Do not confuse the two.