What's up brand builders Stephen Houraghan here at BrandMasterAcademy.com and in this video you're
going to learn how to find your differentiation strategy with 26 positioning examples and ideas
so you can learn how to uncover a competitive advantage to convince your audience that you're
a little bit different now building a brand is a game of strategy and one of the very
first strategic tasks is to identify the key difference or differentiation strategy your
brand will be recognized for but why is having a key differentiator so important how do you know if
yours is valuable and how do you go about finding a unique key differentiator for your brand well
that's exactly what you're about to find out so what is a brand's key differentiator well brands
are developed for one reason and one reason only and that is to make a business seem more appealing
to its target audience so they choose that business over its competitors and it's that simple
it's no more difficult than that through its messaging visual appearance and overall experience
the brand attempts to influence the audience's decision to choose that brand and in order to
do that effectively the brand must give that audience a compelling reason to make that choice
and that reason is the key differentiator and the basis for the differentiation strategy to put it
as succinctly as possible a key differentiator is the brand's distinct and unique value
that sets it apart from its competitors within that market and this differentiator
and unique value answers the question why would i choose this brand over one of its competitors
also known as the usp or the unique selling proposition the key differentiator very clearly
distinguishes itself apart from its competitors within that market now differentiation strategies
are a play at different levels throughout a business each product or service a business has
should have its own unique difference from its competitors from other similar products
or services in that market when it comes to brands the differentiation strategy refers to the brand's
overall experience now this experience may include unique features and benefits
an innovative purchasing experience or outstanding customer service any experience
the customer might encounter on the buyer's journey is all part of the brand's experience
and therefore every touch point is an opportunity for the brand to differentiate that experience
now before defining your differentiator it's critical to ensure that you inject the relevant
characteristics into your strategy without any one of these characteristics your differentiation
strategy may not have the effect that you intended to have your key differentiator should be unique
your audience shouldn't be able to go out into the market and find the same experience
from one of your competitors now of course they may find similar products or services but your
experience should be unique your differentiator should also be valuable your audience should
place a level of value on the difference that you offer whether that's a monetary value a time value
a convenience value or any other kind of value so how does it improve their lives and how are
they going to value that improvement it should also be defendable your differentiation strategy
should not be easily replicated for example if your differentiation strategy is based on low
price your competitors can easily replicate your price point making your differentiation strategy
redundant now there are many templates out there to create a differentiation strategy and one of my
favorites is the online statement now the online statement is a term that was coined by marty
neumeyer in his book zack it was distilled from the unique selling proposition and it provides a
very simple key differentiator template to help in identifying your key differentiator so this is how
it goes our blank is the only blank that blanks or our offer is the only category that benefit
and if you take your time to identify what your offer is identify what your category is identify
what your benefit is then you'll be able to fill out this this template very very easily
now there is a lot more to your differentiation strategy than just filling in a template and
it is an effective tool to do that because it helps to distill your ideas so that is a great
starting point to use one of those templates to really get a bit of clarity in your thoughts but
remember the key here is relevance if you try to mean all things to everyone you'll end up meaning
nothing to anyone now the ways to differentiate your brand from your competition are quite simply
endless differentiation strategy is a game of creative thinking and key differentiators
are only constrained by the limits of imagination if you're creative enough
you can find a unique differentiator for your brand regardless of the industry you're in to
get your creative juices pumping here are some examples of ways to differentiate your brand
number one specialize in your market now this is one of the most basic differentiation strategies
you can apply we value those who specialize in their field and do one thing really really well so
what can you let go of to focus on specialization number two role specialization now this is an
effective b2b differentiation strategy which involves appealing to a specific organizational
role within an industry for example if you're head of sales at an i.t firm you'll feel in good
hands if your coach specializes in helping people in your exact position number three
unique sales experience if you can take your customer on a journey through the buying process
that stands apart in your industry from those industry norms your audience will appreciate
the uniqueness and see it as a breath of fresh air birchbox is a unique e-commerce beauty experience
which lets customers build their own boxes shoppers can browse through a wide selection
of beauty samples then pick five products to put in their box the whole experience is easy fun
and affordable number four niche server specialization providing a very specific service
can help you be more relevant for those only looking for those services for example a business
that wants to advertise on facebook will find a facebook ads agency more relevant than a broader
digital marketing agency number five alternative approach now many businesses within a given sector
often have a similar approach to solving a problem and brands that can break industry
norms and approach the problem from a different perspective with a different approach identifies
as innovative what are the industry norms that all your competitors approach the problem from
and can you approach it from a fresh perspective number six hyper-targeted audience messaging now
a key differentiator for brands that go above and beyond to understand their target audience
is to use this knowledge to their advantage now although the actual messaging doesn't really
hold much value for the client how the messaging shapes their perception certainly does the more
relevant you feel to them the more they'll feel that you are the brand that understands them the
most number seven business size and sector combination now i'm not talking here about
positioning yourself as a brand that serves small businesses or worse smes to use the business size
and sector combination effectively you need to get specific for example a business with a specific
solution helping creative solopreneurs is far more likely to be noticed by that market segment than a
competitor targeting small businesses number eight shared value processes what value do your clients
hold dear and how can you use that to resonate with them for example a financial services brand
might proudly distinguish their personnel as phd only advisors and this would resonate
with a shared value in traditional education while building a sense of safety and trust
number nine unique distribution method your ability to get your products to your customers
could be the difference between them choosing you or your competitors one of the reasons that
amazon and apple are such giants is their chain of supply while tesla bypass the costly dealerships
and they open up showrooms in convenient places like shopping malls number 10 highlight your
shared journey this differentiator resonates with the audience through a shared pathway for example
an immigration law firm built by immigrants who arrived in a particular country and overcame all
the challenges to achieve the same desired outcome their audience has as long as the market is big
enough this business becomes the obvious choice for that audience number 11 specific business
challenge this differentiation strategy crosses all industries but focuses on a common business
challenge across the board the more easily identifiable common and difficult this challenge
is the more effective this differentiation strategy for example a brand that helps businesses
qualify and apply for government funding or assistance number 12 industry recognized expertise
now this is one of the oldest most effective differentiation strategies that's still in use
today brands can build on the back of the reputation of an industry expert or leader
who has at one point achieved a relative level of fame within the industry for example an author of
a well-known fitness book who develops a brand with a program for aspiring fitness coaches now
another great example of this is chris hemsworth fitness brand center now although chris hemsworth
earned his fame as an actor you wouldn't go ahead and dispute his expertise in fitness and he uses
that to his advantage number 13 unique pricing structure now this strategy simply changes up the
way the fees are charged to offer the audience an alternative to the norm for example your industry
might charge on a per month basis subsequent to an annual contract while you might offer
a contract free alternative likewise instead of charging by the error like a competition
you might offer a single monthly fee number 14 rapid market responsiveness so by keeping your
finger on the pulse of your industry you can be quick to adapt to your customers needs and
provide them with what they want sometimes before they even know they want it like them or not
fast fashion giants such as h m and zara they've become synonymous with this model by taking styles
from the runway and fast tracking them to everyday people number 15 location exclusivity
now since most businesses have gone online allowing them to serve a much broader client base
brands that fly the flag for a certain location can leverage specific and topical messaging while
also generating a sense of loyalty from their audience and this becoming more effective today
is globalization has peaked and many are going out in search of a more localized solution number
16 unique information providing a certain type of information your clients can't get anywhere
else can be highly valuable and even critical for certain groups does your brand have access
to certain data or information that no one else has proprietary data is one of the most difficult
differentiation strategies to replicate number 17 unparalleled relationship networks relationships
are an extremely valuable differentiation strategy and this is a tried and tested differentiation
strategy that allows the audience to leverage pre-existing relationships that they wouldn't
ordinarily have access to can you develop your relationships and offer your customers access to
those relationships as a point of difference number 18 partnership specific alignment
now while the previous example highlights a broad range of partnerships this example
leverages a specific entity then this may be a parent brand or a partnership but to be effective
it should be preferably leveraging a bigger name or at least a name that's on par number 19 quality
focused differentiation now by taking a quality approach to your products or services you can set
standards in your industry and become known as a quality brand and this is especially effective in
industries where consumers complain about a lack of quality customer review sites can help identify
those gaps when chipotle broke onto the mexican fast food restaurant scene they differentiated
themselves from low-cost competitors like taco bell by focusing on the quality of their produce
not the cost of it number 20 show more love providing an excellent customer experience
might seem like a no-brainer but chances are a huge percentage of your competitors customers
have had a bad experience everyone can relate to the effectiveness of this strategy because
you really notice when a brand goes above and beyond what's expected and you appreciate
it and remember it can you go all in can you go above and beyond your competitors
to take your customers through a journey that they can't get elsewhere number 21 leverage customer
status now an impressive list of clients is not just good for the bottom line it's great for the
association of status if your brand is a go-to for top professionals or global corporations you
can leverage that trust earned by such prestigious clients couple that with compelling testimonials
from these types of clients and mobilize them into your marketing to create an elevated reputation
number 22 emphasize the size now if your brand can stake a claim to being the biggest gym the biggest
beauty center the biggest mechanic removalist or any other type of business for that matter
you can immediately leverage the perception as the go-to for size now this can be used effectively
with geographic location when otherwise a brand wouldn't be able to do that a global brand
wouldn't be able to make that claim so for example the biggest local fitness center in the manchester
area number 23 accomplishment alignment now some businesses may have had a hand in developing a key
process a technique or a technology that's become well known commonly practiced or an industry norm
by highlighting that accomplishment the brand can align itself to a well-known success
shaping the perceptions of that brand number 24 align through your brand personality by having
an intimate understanding of who your audience is you can uncover the characteristics that are most
likely to attract and sway their decision making using characteristics as a foundation you can
develop a human brand personality that can speak to your audience on a human level and resonate
with them through emotions chubby shorts and the dollar shave club are two excellent examples of
this strategy number 25 result outcome focused now as people we engage with brands to achieve often a
very specific outcome or result and we pay for the privilege of achieving that result now whether we
verbalize that desire or not is irrelevant it is in the underlying desire that drives our actions
brands the focus on the outcome can solidify the idea of success in the mind of their audience so
for example you might specialize in turning six-figure businesses into seven-figure
businesses now though you may offer a very similar service to your competitors this outcome focus can
align your brand with the picture of success more effectively and number 26 go against the grain now
most businesses within a given category often look or act the same for example the insurance
industry is littered with brands with blue brand identities and overly corporate messages
so how could you differentiate your brand in your industry by going against the grain going against
the grain in terms of visual appearance and going again against the grain in terms of your messaging
and your personality as well now although this list of examples above is quite exhausted it's
still only a drop in the ocean each and every one of these examples are unique in their own
right but it's not until you begin to combine unique differentiation ideas do you find a truly
unique differentiation strategy finding your key differentiator is one of the most critical steps
in the development of a strategic brand before you commit to an approach be sure to create an
exhaustive list of possibilities and then begin to combine them now of course once you've taken
the time to identify a short list of potential key differentiators you need to evaluate their
potential effectiveness now this is best achieved by screening the ideas with a series of evaluation
filters which are the following evaluation number one is the value to your audience now your idea
might be unique but how will your audience value that difference will they see it as a
novelty that will wear off or will they see it as a genuine game changer number two difference
to your competition now by definition your key differentiator should be different but there are
different levels of different just how different is yours is it slightly different or could it
disrupt the entire industry number three how achievable is it now you might have a truly unique
idea but can you actually achieve it is it just a nice idea or do you have the capabilities to not
just pull it off but to build your entire position off of it and number four how defensible is it
now when you find a truly unique differentiator the excitement is absolutely palpable but before
you start congratulating yourself you need to analyze how easy it will be to replicate if
your competitors can make a simple adjustment to replicate what you've done then your uniqueness
won't last long and number five does it align with the internal brand so by the time you strategize
your differentiation strategy you should have already developed your internal brand now some of
the strongest and most authentic differentiation strategies have their roots in internal branding
and it includes their purpose and their values so how do you find your key differentiator developing
a key differentiator and ultimately a unique positioning strategy requires two well-tuned
skill sets number one creative thinking and number two strategic analysis without a doubt discovering
a unique key differentiator is one of the most challenging tasks for brand strategists at first
it might seem like the best positions are already taken and finding that unique differentiator can
be a daunting task starting with this exhaustive list of ideas you can immediately begin to explore
these as a potential within your industry but just like chemistry the real magic happens when
you begin to combine ideas if you make enough combinations and push the potential of your
brand to the limits you might just stumble upon a key differentiator that can disrupt
an entire industry now if you want to dive deeper and learn how to define your positioning strategy
then i've got a perfect video for you right up here but before you click it if you want to become
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