Many markets today heavily overcrowded

Prassanna Perera

Many markets today are heavily overcrowded with many players fighting it out for the limited dollars or rupees of the customer. In such a market, following the herd would be disastrous. Hence, the critical need to differentiate and stand out.

Differentiation

This simply means to do something different than your competitors. If this difference is meaningful to your customers, you will have an exploitable advantage. There are several methods of differentiating, which I will endeavour to highlight and briefly discuss.

The Power of the Brand - as a differentiator should not be forgotten. After all, what is the difference between one cola brand and another, except the brand. Marketers would do well to leverage their brands as a powerful differentiator. In a crowded tea market, Dilmah stands out like a beacon due to the differentiation afforded by the brand name amongst other factors. Why do customers buy Levi's jeans paying a premium over other brands. The Levi's brand name is the answer.

Packaging - can be a powerful differentiator, specially in consumer products. Walk into any supermarket and you will be greeted with an array of different packages, shapes and sizes. A good example would be Axe, where the packaging conveys the dynamism, youthfulness and vibrancy of the brand. The dynamic blue of Anchor stands out in the milk powder industry and can be instantly recognized.

Positioning of a brand can be a powerful differentiator. Take the example of "Shangri-La' in Singapore, which is positioned as Singapore's other botanical garden. This unique positioning has differentiated Shangri - La from the hundreds of star class hotels in Singapore. In Sri Lanka, a new brand of green tea named "Olinda" has positioned itself as the world's first carbon neutral tea. By uniquely appealing to the mind of the target consumer, a powerful differentiation can be achieved.

Design - is the modern world differentiator for marketers. Apple would be an excellent example. Another example would be Bang Olfusen in high fidelity sound systems. LED Televisions have great design characteristics, specially brands such as Samsung, LG and Sony. Design can also be used to differentiate services. In services, design refers to the processes used in delivering services. (Service Design). Pizza Hut has designed unique home delivery systems.

Customer Loyalty - programmes can be used to differentiate between competitive offerings. Keells Super with their Nexus Card have been able to differentiate against direct competitors. A me-too loyalty programme will not be adequate in terms of differentiation, in the longer term.

World Class Customer Service - is a powerful differentiator. Many examples come readily to mind, such as Singapore Airlines, Ritz Carlton, Mayo Clinic, Zappos, Nordstrom, Southwest Airlines, Disneyland to name a few. The successes of these organizations are undoubtedly linked to the exceptional service provided.

The Physical Ambience - can be used as a method of differentiation, specially in retail businesses such as super markets, department stores, clothing stores.

The look and feel of retail outlets can create a difference in the shopper experience. Take for example, Wal-Mart, Carrefour, Tesco and our own Sri Lanka chains. There are organizations and brands that differentiate on many aspects simultaneously. Naturally, this will provide these organizations and brands a greater advantage in the market. A good example would be "Apple" and the brand has been differentiated through technology, design, packaging, quality, positioning and innovation. The result is that "Apple" has now risen to the top 10 in global brand rankings. The case of Singapore Airlines also illustrates the value of differentiating on multiple dimensions simultaneously. Singapore Airlines differentiates on in-flight service, most modern fleet, punctuality and world class cuisine. The message is loud and clear - Differentiate or Die. There is no place for me-too products / brands, in an overcrowded, heated marketplace. It must be kept in mind that the sources of differentiation should be communicated aggressively to all stakeholders. In the short term, differentiation will increase costs and hence, decrease margins. However, in the longer term, higher bottom line growth can be expected.

"There is very little traffic in the opposite direction."

(Anonymous) "Be different at all times, to conquer markets." (Anonymous)