Posts Tagged value proposition
How to Compete Against A Goliath Competitor
Posted by Mike Paffenback in Brand Identity, Brand Touchpoints on August 13, 2010
Most of us in small business are looking up at a Goliath competitor. That big, dominant player which seems to effortlessly steal away our rightful market share, or keep us pent up as an ankle biter. Damn them.
The reasons they’re so dominant could be many:
- They were the first
- They listened to the wants and needs of the market and then addressed them better
- They have better, differentiated products or services
- They have a broader selection, better quality, better pricing, and/or better distribution
- They have better customer service
- They have a better warranty or guarantee
- They spend more on marketing and are more aggressive and sophisticated
- They have higher market awareness and preference
- They have deeper pockets
- They’re bigger
- Their breath smells better . . . or many more reasons depending on your perspective
If you’re faced with this kind of competitive dominance, you are a “challenger” brand. Being a ”challenger” suggests action. And, as a challenger brand, there’s plenty of opportunity for action on your part.
Keep this in mind as you plot your competitive course: as a challenger brand, what do you really have to lose by taking measured risks? The pressure’s on Goliath not to do anything that would jeopardize their market advantage, right?
So, what exactly do you do?
You may remember the classic challenger campaign waged years ago in the rental car market. The industry Goliath back then was Hertz. One ankle-biter challenger brand was Avis, and Avis set their sights on going toe-to-toe with the Hertz Goliath. Their branding campaign was simple: as the #2 player, we have to try harder to earn customers’ business. Avis committed themselves to offering the best cars, keeping them extra clean, ensuring the gas tank was full for pick up, and more. They also were able to promote their shorter lines — a result of being a less popular rental car brand. It was a great campaign which leveled the competitive battle field.
Like Avis, the key to successfully battling nose-to-nose with your Goliath lies in developing an effective brand identity platform that’s destinctive to your brand.
The process of developing this forces structured thinking about your brand strengths and weaknesses and those of your Goliath. It results in the formation of uncompromising brand mission and values statements that fuels the right business attitude. It enables your defining a clear and laser-focused brand positioning platform where you tell customers why they should do business with you rather than Goliath. It details your brand value proposition, the multi-level benefits users of your product or service will derive. And it defines the standards of performance when develivering the various brand touchpoints.
Dell, Virgin, Southwest Airlines, Apple, Hyundai, any popular musician or group — they were/are challenger brands. And each found just the right stone to throw at just the right place to knock down their Goliath. It wasn’t luck, it was considered planning and effort fueled by a challenger mindset.
You can do this.
A Brand Value Proposition? Why, and Who Cares?
Posted by Mike Paffenback in Brand Identity, Brand Value Proposition on August 2, 2010
Remember the old Volvo ads that harped on their cars being built around passenger safety? Back in the ’70s and ’80s it was the one thing, above all else, that Volvo wanted auto buyers to associate with their brand. It was their brand value proposition: the promise of a particular benefit — safety.
For Disney, it’s family fun. For Ritz Carlton, it’s exceptional service. For Boston Whaler, it’s unsinkable. For Levi’s, it’s ruggedly durable comfort. Nordstrom’s has VIP customer service nailed. For a Jimmy Buffett concert, it’s a care-free good time.
These brands each suggest a singular promise of a benefit that will be derived from its use. As David Aaker indicates in his must-read book on branding, Building Strong Brands, that benefit could be functional (Volvo provides a safe car because of the way it’s built), emotional (my family will be protected in a Volvo), and/or self-expressive (Volvo is a symbol of the personal value I place on safety).
To define your brand value proposition consider this: what benefit does a user receive from my brand? Make the benefit distinctive compared it to competitive alternatives, and you’re on your way to nailing down your brand position as well.
The benefit of resolving this is that you create a singular focus around which you can rally your troops, concentrate your brand messaging, and reinforce time and again through each of your audience interactions — your brand touchpoints. In that way, you’re making it easier on your customers and prospects to figure out why they should do business with you instead of someone else.
It worked for Volvo. And Disney, The Ritz, Boston Whaler, Levi’s, Nordstrom, Jimmy Buffett, and a lot of other brands, too.
It’s not easy, but there’s value to be gained. I know you care about that.
Starting a New Company = New Brand Opportunity
Posted by Mike Paffenback in Brand Identity, Brand Positioning, Brand Value Proposition on July 29, 2010
A blank slate. A fresh start. A new company. If you’re at the starting line for sure-fire success with a new venture, congratulations.
One way to pave the way for that success is to consider the kind of brand image you want to have. Do it today. Right now. Because whether you manage it now or not, the simple truth is that an image will start taking root of your company, product, and service. And unless you take control of this yourself right from the start, you might not be too happy with what that image is.
When you contemplated starting your new venture, you most likely decided what kind of company you wanted to be relative to the competitive solutions already available to your future customers. Ideally, you can identify several points of distinction between your company and your new competitors. Maybe it’s the products. Or the pricing. Or quality. Or service after the sale. Or … whatever.
Take all of this stuff rolling around in your head and spend some time writing it down for each of your brands. Then, sit back and craft a vision/values statement for each brand: the irrefutable truth about what your brand unconditionally stands for.
Next, write out your brand value proposition: the basic, functional benefits a customer will derive from using your brand; the emotional/feeling benefits a customer will derive; and, if appropriate, the self-image benefits a customer will derive. Think about the relative role your pricing will play in the benefits equation, too.
Then move on to crafting your brand position. This is what you’ll actively communicate to your prospective customers that demonstrates a distinctive and decisive advantage over your competitors.
Finally, map out the various ways you’ll likely interact with prospects and customers throughout the sales process: before, during, and after. The obvious ways, and the not-so obvious ways. Prioritize these relative to their impact on the sale or customer retention. Then, create a plan to proactively manage the delivery of these interactions — your brand touchpoints — so that they’re in sync with your brand position platform, your brand value proposition, and your brand vision statement.
If you do this, you’ll be in better control of what kind of image the public forms about your brand — because you’ve defined what you hope that image to be and you have a management plan to ensure it happens.
And a strong, positive brand image leads to a strong, positive growth chart for your business. Good luck.