Differentiate or die<\/p>\n
By Yuswohady<\/p>\n
JAKARTA (JP): The above title is the title of Jack Trout's
\nlatest book published last year.<\/p>\n
Jack Trout, as you may still remember, is the guru of
\npositioning who, with Al Ries in 1969, invented a marketing
\nconcept that is powerful today. It is called positioning.<\/p>\n
I like the title because it accurately describes the
\ncompetitiveness in today's turbulent and volatile business
\nenvironment.<\/p>\n
What Trout said was right. In the hypercompetitive
\nenvironment, your brand cannot survive without differentiation.
\nDifferentiation determines the life or death of your brand.<\/p>\n
In one of the national newspapers last week, I specifically
\ndiscussed Tempo's recent brand extension strategy.<\/p>\n
With this strategy, Tempo magazine wants to leverage its brand
\nequity by entering a new product class -- newspaper -- with a new
\nbrand name, Koran Tempo.<\/p>\n
I said in the article that Koran Tempo might use Tempo
\nmagazine's strong brand name, but it would be meaningless if it
\nwas not followed by efforts to differentiate itself from its
\nstrong competitors like Kompas or Bisnis Indonesia.<\/p>\n
Koran Tempo should clearly position itself as, say, "the
\ninvestigative newspaper" to differentiate itself from its
\ncompetitors.<\/p>\n
Our message here is simple -- even with a strong brand name,
\nclear differentiation is still needed to survive.<\/p>\n
This is clearly seen in companies that have been successful
\nthanks to strong differentiation.<\/p>\n
Wal Mart has become a strong market leader in the mass-
\nmerchandise business because of its strong differentiation
\nthrough its "everyday low price" strategy.<\/p>\n
Dell has consistently grown at five times the industry rate,
\nthus becoming the darling of Wall Street.<\/p>\n
Its stock was up more than 36,000 percent last decade due to
\nits unique approach, in serving its customers, using what we call
\n"direct model," in its differentiation.<\/p>\n
In Indonesia, BCA for example, has been able to differentiate
\nitself with one key word "convenience" through its ATMs, debit
\ncard and recent KlikBCA services (Internet version of an ATM
\nservice).<\/p>\n
If differentiation determines a company's life or death, how
\ncan companies establish strong differentiation.<\/p>\n
To answer this, Jack Trout proposed four generic steps that
\ncan act as a guideline.<\/p>\n
First, your differentiation has to make sense in the context
\nof your product category.<\/p>\n
It has to start with what the marketplace has already heard
\nand noted from your advertisements.<\/p>\n
Nordstorm's "better services" differentiation for example,
\nplayed perfectly into the context of a department store sector
\nthat was reducing its employees and services to cut cost.<\/p>\n
Lotus launched the first successful network of "groupware
\nsoftware" called Notes just as corporate America was networking
\nits PCs.<\/p>\n
Second, find a way to differentiate yourself.<\/p>\n
"To be different is to be not the same, to be unique is to be
\none of its kind," said Jack Trout. "So, you're looking for
\nsomething that separates you from your competitors."<\/p>\n
Toy "R" Us, Staples and Blockbuster's differentiation
\nstrategies rest on their unique formula, "A narrow focus with in-
\ndepth stock."<\/p>\n
FedEx separated itself from its competitors by creating a new
\nservice -- overnight delivery.<\/p>\n
Aqua differentiated itself by branding their commodity
\nproduct, and like Fedex, then created and owned the new category.<\/p>\n
Volkswagen differentiates itself from its American competitors
\nby positioning itself as a "small car that is economical,
\nreliable and ugly."<\/p>\n
Third, you must have credentials to support your
\ndifferentiating idea, to make it real and believable.<\/p>\n
Volvo's capability in building a safe car was its key
\ncredential for labeling the vehicle "the world's safest car."<\/p>\n
As for IBM, size was the key credential in setting up its
\n"integrated computing."<\/p>\n
If you have a product difference, you should be able to
\ndemonstrate that difference.<\/p>\n
The demonstration becomes your credentials. Claims of
\ndifference without proof is just claims.<\/p>\n
If British Airways claims it is the "world's favorite
\nairline", it should fly more people than any other airline.<\/p>\n
The same applies if Coca Cola claims it is the "real thing",
\nthen it has to have invented colas.<\/p>\n
And finally, you have to communicate your difference to your
\ncustomers.<\/p>\n
Having a good differentiating idea is not enough. You have to
\nhave the resources to build a communication program that
\nproclaims your difference to your customers.<\/p>\n
You need your difference entrenched in the minds of your
\ncustomers.<\/p>\n
This is critical. Every aspect of your communications should
\nreflect your difference. You are your advertisement. Your
\npublicity program. Your brochures. Your website. Your sales
\npresentations.<\/p>\n
The four steps above are not enough. Although you have made
\nsense of the context, got a good differentiating idea,
\nestablished credentials and conducted an excellence
\ncommunications program, you still need to be consistent with your
\ndifferentiation.<\/p>\n
Consistency is at the heart of every differentiation building
\nprogram.<\/p>\n
Dell has been consistent with its differentiating idea, "Go
\ndirect to users with a lower price proposition."<\/p>\n
Southwest has been consistent by positioning itself as the
\n"low-fare airline."<\/p>\n
And Marlboro has been consistent with its "Marlboro country"
\nand "cowboy lifestyle."<\/p>\n
Be different. And win the competition!<\/p>\n
The writer is an associate consultant at MarkPlus&Co.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/differentiate-or-die-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }