How to Create Differentiation: A Reason to Choose You
Differentiation is constantly sought after by marketers and consumers world-wide. Create differentiation and you’ll create another ‘why’.
Creating content is largely a trial and error process in the early stages, and from there data will show you the way. To understand the kind of content your customers will want to read, you have to understand the ‘why’ of both your existing and your potential customers. Why do/should they buy your product? This also applies to how you develop and offer your product.
Regardless of the product or service that you offer and how niche it might be, it’s fairly certain that you will have some competition. With no differentiation other than price, you really have three options:
- Battle it out on price and eat into your margins. By undercutting or matching your competitor, you might just recoup enough sales to make the same profit on a lower margin.
- Change nothing and hope that your existing customers continue to purchase your product over your competitor’s. If the only differentiation between your products is the price then I wouldn’t count on it.
- Differentiate your product. Instead of focusing on reducing the cost of your product, you should give your customer a reason to pay a little extra for it – give them a ‘why’.
An Example of Differentiation
Perhaps the perfect example of differentiation over price reduction can be seen in Dan Aykroyd’s Crystal Skull Vodka.
On Amazon this vodka is available for £41.75, a £6.25 saving on RRP, so it’s not a cheap tipple; furthermore it’s not the only highly refined drink of its type available, a competitor with the same star-rating is offering the same sized bottle for less than half the price.
So why has it proved so popular? Taking a look at some product reviews can offer an insight.
“Anything made by one of the blues brothers deserves five stars, super clean on the palate and the bottle is awesome.”
“Bought this as a gift for my son-in-law who says the vodka is wonderful and smooth and the bottle thats it in is excellent - value for money.”
“Very unusual bottle & a great gift too. It is more expensive than the average bottle of vodka but for something a bit different. It's A plus.. It came very well packed & in a nice box too. It's also a nice smooth tasting vodka.”
Of the ten most-recent reviews, five mentioned the unusual crystal skull bottle. Are people likely to pay double for slightly better tasting vodka in a normal bottle? That seems unlikely; but are they willing to pay double for slightly better tasting vodka in a re-usable, corked glass skull? Evidently, yes.
The drink itself might be very good, but the bottle is just another ‘why’, another reason for people to buy it. If you think that fragrance, antimicrobial, anti-counterfeit or one of our bespoke properties could be your 'why' then please contact us today.
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