Question

Topic: Branding

Finding A Differential Other Than Price

Posted by Jonas_2.0 on 250 Points
I am a bit stuck and hope you all can help.

Need to develop a brand positioning for a new PC and electronics retailer on the web that will be launching later this year. They sell new and refurbished products. Like others in their vertical, they promise great deals and great service.

In my opinion, a good brand position must differentiate itself from competitors. That said, how do you uniquely position a brand like this when their "promise" of price and service is the same promise as their competitors? I find this challenging because our target shops based on price and little else. So, I guess my question is -- is it OK to focus on "price" even though its not really a differential? Is there another differential I am missing perhaps? I think their brand identity (logo, name, etc) will be very unique...can that be leveraged as part of the differential?

Thanks in advance.
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RESPONSES

  • Posted by Peter (henna gaijin) on Accepted
    Everything comes down to differentiating on price, service, or quality. You can't differentiate on all 3 at once - at best you can choose any 2 of the 3 (and many companies have trouble with even getting 1 right).

    You say price isn't a differentiating factor. It is, if your price is better than other locations a customer would go to buy a compute. If it isn't, then it really isn't a differentiating factor.

    Note - price would be as compared to where a customer would shop, which is not necessarily the lowest priced source out there.

    Around where I live (NorCal), service seems to be the place where electronics stores differentiate most. The real low price folks have lousy service (often can't even get product info from employees, and very difficult return policies). For a bit more money, you can get better service.
  • Posted by L. Duggan on Accepted
    One way to differentiate yourself is in terms of the experience customers will have in visiting your website and getting the "great deals and great service"you claim you will deliver. If deals and service is what you are promising your customers than how exactly are you going to deliver it in a way that can be different from your competition?

    Differentiating on the basis of customer experience is fairly easy today because so many businesses provide crappy service and in some cases make it difficult to be a customer. Websites that are difficult to navigate, customer service reps that would rather be doing something else, hassle filled return policies. Think about companies that create superior experiences for their customers. Go hang out in an Apple Store, or Disney Store or NikeTown. Think of how Southwest differentiates itself by making each flight a flying comedy show.

    Focus on how you are going to provide great deals and great service, visit Zappos.com, who allow customers to return shoes up to a year after purchasing them. Check out Amazon.com and the way their smart systems track what you bought previously and make suggestions for future purchases, or how they offer free shipping. Or check out Red Envelope.com, the online gift shop that distinguishes itself by the red velvet box with a white satin bow that all their gifts are delivered in.

    These are just a few examples to give you some ideas on ways to differentiate yourself based on the customer experience you provide. Use the deals and service platform and let your creativity dictate how you will deliver it in a way that is special for customers. Pretty soon your company will be listed with the superior experience providers.

    Good luck.
  • Posted by Jonas_2.0 on Author
    Thank you all for your insightful answers. Each response has great information that I can noodle for a while. Best of luck to all.

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