Question

Topic: Strategy

Positioning A Near Commodity

Posted by Anonymous on 125 Points
I need a second option (and a third!).

How would you suggest developing a positioning message for a company that offers a service that buyers perceive to be a commodity?

Background: The company we are trying to position provides temporary staffing services. They sell in several geographic markets in the US and target HR managers and "end user" hiring managers. Their current value proposition lies in providing better quality temporaries through more thorough screening, better service, greater attention to detail...all soft values that are hard to prove and in truth hard to consistently deliver. Most of the people we will target view staffing as a commodity, and one that they really don't care much about (at least until a crisis arises that requires a staffing solution).

Our challenge: developing a credible positioning message to serve as the foundation for their marketing. While we have a half dozen ideas so far, I'd love to see the thoughts of all the brilliant people here!

Thanks,

David
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RESPONSES

  • Posted by Blaine Wilkerson on Member
    I think you may have answered your own question!

    Your last sentance:

    "Most of the people we will target view staffing as a commodity, and one that they really don't care much about (at least until a crisis arises that requires a staffing solution)"

    Perhaps you can utilize the "negative" view of your target to turn it into a "positive" advantage for your client to get through to them.

    In other words, tap into their weakness: The fear of suddenly being understaffed!

    I would use that as the foundation of the marketing, but would still include the soft values you mentioned as added qualifiers.

    Good Luck!
  • Posted by ReadCopy on Member
    I agree with what Jett says, and remember how to write a Positioning Statement ... "For [Customer Segment], our [Product/Service] is [Your USP's or SSP's]".

    Turn it around a little and position your business rather than the service, and use that fact that WHEN they have a emergancy, YOU are able to respond to them.

    Good Luck

  • Posted by Paul Linnell on Member
    Hi David

    When products and services are seen as commodities what is really happening is that the marketplace has lost sight of the “value” and are only seeing the “cost”. What you need to do is focus your client’s customers back on the “value” and the best way to do that is to demonstrate the “cost” of not choosing your client’s temp staff.

    Have some independent research conducted amongst your client’s customers and also enough of their competitors’ clients to establish the effectiveness of temp staff sourced through each. You might secure co-operation from your client’s competitors by offering them a summary of results (theirs vs. all others) as a benchmarking exercise. Measure tangibles that translate into cost/benefits to the customer. E.g. Effectiveness in the roll, length of induction/training required, time taken before performing up to speed, overall satisfaction with temp staff provided … etc.

    If the results are favourable to your client, they may use them to support their marketing positioning statements.

    I hope that helps.

    Best regards

    Paul Linnell
  • Posted by Blaine Wilkerson on Accepted
    All good advice, but like you said, your target views it as a commodity. Is is realistic and worth your time to try to "change their minds" via lengthy and time consuming study on the cost of the service? I think not.

    While in theory it sounds great, it isn't very feasible. Playing on what you already know about them and exploiting their fears and/or motivations will get you back on track in a shorter amount of time. THEN, you can spend a few weeks chewing on your eraser trying to figure out how to make them NOT view your client as a commodity!

  • Posted by Markitek on Accepted
    On the surface, the first thing I think is to ask yourself if your focus is correct. You wrote:

    "Their current value proposition lies in providing better quality temporaries through more thorough screening, better service, greater attention to detail"

    This is, in fact, not a value proposition--it's self aggrandisement. This is just more marketing hooey . . . and no doubt the same hooey their competition is shoveling. "We're better" is no position to take. (Look at Remedy Temp--"intelligent staffing" or Kelly -- "staffing the world" or any of the others -- one big mishmash of braggarts--yawn.)

    You can take a lesson from other commodities here. The most accessible example for me is laundry detergent. Does Brand X say "we have stronger chemical agents in our formula?" Nope. They say "we get your clothes cleaner."

    Sounds simplistic. But it is in fact a whole refocus.

    A true value proposition--commodity or not--has at its core not quality of product but quality of life for the customer. So before you go and pick a position you have to ask a couple of critical questions:

    How many types of people/segments are there in the marketplace? You've mentioned two, but can you drill those down at a more granular level?

    What does each of those segments want? Is it really better quality temps--perhaps it is. But perhaps you'll find that they have other goals in mind, if you know how to litigate the question (what I call the "so what" drill which you can read about here: https://marketingprofs.com/2/fischler1.asp).

    Maybe you end up with a set of potential positions like "peace of mind" or "meet committments" or "get home at a decent hour" or whatever it might be. (These might not be the right ones, but the principle is strong.)

    One of the other respondents here used Nike as an example--a good one I think. Their position focuses on personal accomplishment--"Just Do It"--not on some product characteristic. Starbucks is the same: their positioning has more to do with the overall experience of Starbucks than it does with better triple-mocha-decaf-latte-grande-doubles.

    Perhaps your half dozen ideas takes this into consideration. If not, I hope these thoughts will prove helpful.
  • Posted by tjh on Member
    All appropriate and excellent comments.

    The only thing I might add is that the foot soldier salespeople for the firm are the front line for making this work.

    Consistent exposure, meetings, stopping by to drop off chotchkies, delivering verbal and written materials about the branding or positioning message(s), etc. (Always have a business purpose for the visit, even if it's short and quick.)

    I'd guess that in large part, continuing to "be there" in person, with a known purpose and message, building trust with the hiring staff, is at least as significant as the message itself.

    Cause them to "get to know you" by somehow enforcing call-tactics via your sales force, supplemented by your own ads, mailers etc. Closely managed realationship building will go look like "going the extra mile" to your customers and prospects. Never let the sales staff go off-message.

    Just my $0.02...

  • Posted by ReadCopy on Member
    To be honest David, I think you have done all the hard work, correct process have been followed, key values identified ... the next stage is turning the business values into practice ... easier said than done I know.

    You now need a programme team or steering group, thats has member from all your divisions, and 1 or 2 from the board.
    It may sound daft, you this team needs a great name, something that show just how important the programme is.

    The core task of the team is to ensure that divisional objectives are set for adoption of the values, and that any barriers are removed. They need to concentrate on making decisions and working through any issues that arise.

    Remember the focus needs to be on the customer experience and ensuring that you have the capability to over-deliver on their expectations.

    Good Luck
  • Posted by BobetteKyle on Accepted
    I like the lists of problems and values you've put together.

    You asked "So where would you go from here?"

    It seems that, since customers perceive staffing as a commodity, that no staffing service in that market has taken the initiative to effectively differentiate its services.

    I think a key lies in that term "differentiation". A lot of times, it's easy to get caught up in figuring out how to position in terms of doing things *better than* the competition (instead of differently from the competitors). This creates the uncomfortable situation of not being able to back up the positioning statement. This because saying you are better does not make it so.

    Try focusing instead on how your client can do things *differently than* a typical staffing service. I'd get started on this by first brainstorming around some of the problems you've identified (#5 and #6 seem promising).

    Forget about being a "staffing service" and think in broader terms, maybe "HR provider", "HR resource" or whatever. The idea is to get rid of the traditional shackles, piggyback your ideas, and see where it takes you.

    Also, during the brainstorming session, try not to censor ideas. Brainstorming is about getting ideas, no matter how outlandish. If you refrain from thinking about whether it's possible to implement an idea, I think you'll come up with better results.

    Afterward, screen down the list with a dose of reality, so you are left with the ideas that have potential. Hopefully, you will then have some gems around which to work an effective, believable positioning.

    Good luck!

    Bobette Kyle
  • Posted by Blaine Wilkerson on Accepted
    Well, to add another chapter to the novel we are creating here, I thought I would throw in a few more cents....

    One of my previous business partners started a temp agency several years ago. They primarily focused on laborers for construction etc. since there were so many larger agencies out there who had "cornered the market" on white collar staffing.

    They used a unique and somewhat unorthodox approach: They charged the clients less and paid the employees more! In addition, they had t-shirts made for all the workers and visited them daily at the job sites to bring them cool drinks, snacks, etc. and check in on them.

    Needless to say, this strategy attracted a lot of attention. Their client and employee base skyrocketed in record time and almost instantaneously attracted the media AND the Governor of Oklahoma...all of whom coined them as "The company who cares".

    I'll let you decide if that little story has any merit to your project. See if you can pull anything out of their example.

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