Positioning means being different in the mind of the consumer. One way to create differentiation is based on the product linked to a specific brand.
A very common strategy in the past, I find that product based differentiation rarely produces meaningful results in today’s economy, where most of the products have become commodities.
In order to consider this strategy at few things have to happen:
- The product behind the brand has to be “unique” versus competitive offerings. The “uniqueness” can be the results of a distinctive design (Apple), product features (Dyson-The vacuum cleaner that doesn’t loose suction), country of origin (very important for some product categories such as hand tools).
- The “uniqueness” of the product should not be easily, if at all, copied. We live in a global economy where innovative product ideas are difficult to develop and even harder to protect. In the cell phone industry, you now have the choice of a Blackberry or similar phones (at least in terms of appearance) from Samsung, LG and Motorola, at a fraction of the cost.
- The “uniqueness” has to be sustained over time. Companies who decide to use product based differentiation for their brands have to be prepared to invest a lot of resources in research and development to keep the product “fresh”. Kodak was a leader in film photography but lost the battle when digital became the standard.
Positioning a new brand on product is not my favourite because I find it difficult to sustain over time. The “We offer quality products” statement is not creating differentiation. Every brand makes the same claim. Instead, I use a unique product as a supporting element in the differentiation strategy, which is usually based on intangibles (prestige, desire, pride etc).
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