How are brands successfully differentiated

Brand

A brand is an identifying symbol, mark, logo, slogan, name, word or anything that is used by the
companies to distinguish their products from the products of other companies.
Differentiation

Differentiation is a process in which companies use to make product or service meaningful of its
competitors in ways that provide unique value to the customer. Differentiation is a continuous
process in which a subject of evaluating a marketplace and evaluating the company to ensure that
its positioned for success.

Brand Differentiation

Brand differentiation means that a company’s brand is set apart from competition. Brand
differentiation happens when a product or service matches higher performance with an important
customer benefits.

Two questions are important to consider for a brand differentiation as compared to the others.

1. In what market a brand is going to compete with other brands?

2. How are we going to compete differently?

In what markets brands are going to compete?

The powerful strategy for all brands is to enter a market where there is no competition. Brand
might face strong barriers to enter in a market but if it discovers such type of market it will be
beneficial for the brand itself. Sometimes, it needs to redefine the market to create a new
market segment in which brand might be the only player in a market or it may be to dominate.

How are we going to compete differently?

A company’s strategy is important to compete with other brands. It is the foundation of a

business and it helps in day to day operations. A strategy may focus on the particular market
niche where a brand is going to compete in or it could focus on how brand are going to compete.
For effective strategy of the brand, the strategy should be easily and frequently communicated
with the employees in order to maintain cohesive business focus.
Developing a strategy

When you are going to develop a strategy for a brand, the first thing is that to identify the
current situation of the industry includes many factors such as nature of the competition and
how is the industry changing. Assess the competitors in depth, particularly focus on what
makes a brand different from the others. How a brand tries to distinguish with other brands?
How customer seems to perceive their differences? Evaluate key products and services of all
brands in which a brand is going to compete

Strategies for differentiation

The most significant thing is that to find the area of strength for differentiation of brand. There
are some strategy variables to consider for differentiation in brand.

 High quality versus low price

 Narrow versus broad product line
 High-tech versus low-tech products
 Trendy versus conservative products
 Customized versus standard
 Niche market versus mainstream market
 Brand name versus generic

These variable are important for the brands to create a differentiation. For example, Walmart
differentiation strategy is low cost. It provides goods to their customer in low prices than the
competitors. It is one of the successful brand in the world.
How brands can be differentiated
Do a competitive Audit
When a company is doing competitive audit. The company is looking for the following questions
to get information about the competitors:
What are the type of companies? What are the competitions in companies? What are names of
companies? What are the products and services they offer? Where do companies place? Where
the market? What kinds of markets are in? What kind of categories are in? What is their branding
and design? Where companies market themselves? What’s their customer avatar? How do they
price themselves? How they price themselves as a brand? So are they premium, luxury, or a
value brand? How do they price their products and services?
These questions which tells us about the information of competitors to analyze the strength and
weakness of each competitor in a particular market. We can identify and analyze the
competitions between the competitors. We are able to see the opportunities in a market and
establish position in the market where the other brands in other competitions is not necessarily
doing it or looking like it or not doing marketing in particular way. A brand can take advantage
where the other competitors are lacking in the market.
Pricing Strategy
It is important strategy for creating differentiation in the market. We analyze the prices of all
competitors in the market. Check competitor’s prices either it offers premium or a value in a
market to achieve the differentiation
Quality Strategy
In this differentiation, companies are trying to focus on quality to achieve the differentiation.
Some companies more focus on quality of products and some companies are least focus on
quality. For example, Tesla is a luxury car brand, but there is a huge white space in luxury car
but eco-friendly market but they totally took over that space. Their service level
Delivery Method
How the other companies deliver their products? How technology is sold in digitally?
Personalized delivery method is important to differentiate the brands successfully. For example,
Apple store provides the products and services digitally revolutionized method. Amazon is
providing books to the customers through digital channels like e-books.
How and where do the marketing
What type of social medias used for marketing? Either companies use traditional marketing or
broadcast marketing.
Customer Targeting
Who are the perusing target customer for the brands? For example, Tesla is focusing on eco-
sensitive people for their electric car products. They are using innovative ways and taking
advantage where the environment is eco-sensitive.
Brands should identify the gap in the market and then capture the space in the market by
adopting a differentiation strategy. A brand can distinct itself by following a good strategy. A
brand can innovate its products and makes a successful differentiation.