Monday, March 17, 2008

Differentiate Or Become A Heavily Price Driven Commodity Brand

I was going to call this post "Differentiate Or Die" then remembered that that's not true. If you are a major brand in the real world, and you are unable to differentiate yourself, you become a heavily price driven commodity brand, such as Folgers, in a heavily price driven commodity category such as 'ground roast coffee (GRC). Other examples of heavily price driven commodity brands and categories include United, American or any airline, Duncan Hines in baking mixes, Crisco in edible oils. And now I leave room for a few of you readers to add a few of your own. It takes a lot of time to become a heavily price driven brand in a heavily price driven category - so what is it these advertising agencies have been doing with your advertising budgets all these years if it hasn't been differentiating "YOU" in the marketplace?

I tried to post the following on the Marketing M.O. Blog that got me started thinking about this via Seth Godin's the "the" factor, but was unable to. So here's the comment I tried to post there.

How would you express the "the" factor if you were a fried chicken chain attempting your first US expansion? How would you find the "the" factor in a recent Harvard Business case study of a new VP Marketing positioning "HUNSK MOTORCYCLES" as "authentic". Is this brand not converging on the same position owned by Harley Davidson, Indian and resurgent Victory motorcycles (also claiming authenticity) - just saying the same thing their own way. I would say you need to differentiate or die - but that's not what happens in the real world. When you are unable to differentiate yourself - which is what has happened to brands such as United, Oldsmobile, Dodge, Folgers, Crisco, Duncan Hines and so many others - you just become a heavily price driven commodity brand in a heavily price driven commodity category.

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