choosing a compelling point of difference. brands differentiate in two fundamental ways 1.leverage...
Post on 01-Jan-2016
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Brands differentiate in two fundamental ways
1. Leverage performance associations
2. Leverage image associations
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1. Performance associations are used when features are easy to assess prior to purchase
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2. Image associations are used when performance associations are more difficult to assess
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Michael Jordan - Gatorade Beyonce - Pepsi George Clooney - Nespresso
Jared Fogle - Subway Peyton Manning – Papa John’s Jennifer Anniston – Smart Water
2. The food and beverage category differentiates largely via image associations
2. The health and beauty category also differentiates largely via image associations
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Emma Stone - Revlon James Franco - Gucci Scarlett Johansson – D&G
Tina Fey - Garnier Diane Kruger - Chanel Charles Barkley – Weight Watchers
2. Luxury goods are another category that relies almost exclusively on image associations
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Uma Thurman – Louis Vuitton Gwyneth Paltrow – Tod’s Roger Federer - Rolex
Nacho Figueras – Ralph Lauren Lady Gaga - Versace Christiano Rinaldo – Emporio Armani
Compelling differentiators must meet three fundamental requirements
• Relevancy: Attribute must be an important decision driver
• Credibility: Brand consistently delivers this attribute
• Uniqueness: Brand delivers this attribute better than rivals
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Points of parity and difference in the computer industry of the 1980s and 1990s
Points of parity
• Quality
• Design
• Reliability
• Price
Dell Differentiators
• Customizability
• Value
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Points of parity and difference after competitors launched build-to-order web sites
Points of parity
• Quality
• Design
• Reliability
• Customizability
• Value
Dell Differentiators
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Points of parity and difference in the mail delivery industry of the late 1970s
Points of parity
• Reliability
• Customer service
• Package protection
• Price
FedEx Differentiator
• Overnight delivery
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Fedex points of parity and difference after competitors launched overnight delivery
Points of parity
• Overnight delivery
• Customer service
• Package protection
• Price
FedEx Differentiator
• Reliability
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Points of parity and difference shifted again after fax machines and email were introduced
Points of parity
• Reliability
• Overnight delivery
• Customer service
• Package protection
• Price
FedEx Differentiators
• Security/confidentiality
• Attention grabbing capability
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Summary
• Brands differentiate in two ways: They leverage performance associations when features are easy to assess prior to purchase and image associations when they are not
• Differentiators must meet three fundamental requirements: They must be relevant to decision making, credible to customers and unique to the brands that claim them
• Finally, points of difference change over time so brands must seek new sources of differentiation when previous differentiators become points of parity
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