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It’s time to decide what makes you different from the other guy. This is critical, if you cannot clearly tell people why buying from you is better than buying from your competitor, you will never escape from a commoditized market place.

And no, you cannot create a unique brand based on price alone, because someone will always be able to challenge it. (Read: How to Avoid Competing on Price in Retail.)pricecomparison-600x360IMAGE: Price alone doesn’t make your product stand out from the rest.

 

Because commoditized products are defined by their uniformity in availability and price, you first need to determine your target customers and pricing strategy.

• Say no to the idea that all consumers are your customers. You can’t sell to everyone, so decide what group of customers will love your product or services. Choose your target customers and stick with them.

• Choose a pricing strategy by deciding on where you are going to compete in the marketplace. With low pricing you create a value or bargain brand. Or maybe you want to position yourself as the high priced premium brand.

These are the initial steps taken to create a unique brand. But with commodity products you need to stretch beyond for true differentiation.

IMAGES: Evian Live Young differentiates with a psychological value (5).

Top 5 ways to differentiate your brand.

1. Create a unique or superior purchase experience. It needs to add value for your customer and fit in with your pricing strategy.

2. Provide a new distribution model. Your customers may appreciate your product being available in more convenient, unique or pleasantly unexpected places.

3. Bundle your product with other complimentary products or services. This ads value for your customer.

4. Create unique branded packaging. This can improve your memorability as well as increase perceived value.

5. Add a psychological value. Show your customers how their lives may change by using the product in a certain manner.

Chatters Salons Stand Out

IMAGES: By using differentiating techniques, Chatters Salons makes its product offerings stand out.

 

Our client, Chatters Salons sells the same hair products at a value price as many other retailers. We help them de-commoditize their product offering by creating a superior purchase experience (1.) and by adding a psychological value (5.).

Promotions are framed to group similar products together, highlight the slight differences between each, and present styling possibilities that could be created from each product.

The ‘Incredible U’ promotion helps customers narrow down their product choice to one that’s right for them. By offering expert advice in-store we made shopping at Chatters about more than just value pricing.

Create a unique brand and the fact that you sell a commoditized product that is like all the others, will become irrelevant.

hayley-blog-image

Hayley Ballinger, Principal & Creative Director.
Hayley has a passion for asking the questions 
that reveal buried opportunities. 

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