Product branding is the development of a unique brand for a product with the aim of reaching the brand’s target audience. Every product/service must have one or more characteristics that makes it unique and gives it a competitive edge in the market. That unique characteristic(s) becomes a brand’s competitive advantage.

Defining your competitive advantage is what sets your business apart. It helps your business make the most of your existing strengths, prioritize improvements and give relevant brand positioning. To identify this competitive advantage(s),  the following should be critically analyzed

  • Value Proposition; A brand must clearly understand the features of its products/services . What is the real value you provide , that your consumers really need , that cannot be experienced elsewhere? What makes your brand special?
  • Target Niche; It is very important to craft out the target niche/audience of your brand and understand their spending habits and preferences.
  • Competitors ; A brand must carry out an extensive research and have a clear understanding on the values of its competitors and know how to strategically position themselves ahead.

Giving the right answers to this can help a brand develop sustainable competitive advantages. Your brand might offer a valuable need to an ideal consumer , but if same value can be gotten from another brand, then you have lost your advantage.

The  3 basic components of a competitive advantage are;

  • Cost Leadership ;  This refers to a brand providing quality value same as its competitors but at a much lesser cost. Although frowned at as a rather offensive strategy by competitors, it becomes an advantage when properly utilized. A brand must ensure all of its products/service are of impeccable quality as its competitors’. A typical example of a brand who has effectively utilized the cost advantage is Walmart , Shoprite. These companies have excelled at cost strategy as they offer quality products at low prices when compared to their competitors.
  • Differentiation ;  This strategy involves significantly developing products/services with unique features that differentiates it from the rest. Example of a brand with this strategy is Apple. Apple has differentiated its brand from the rest by appealing to its consumers through innovations and minimal but iconic designs. Apple prices its products significantly higher than its competitors giving the impression of class and exclusivity.
  • Focus ; This type caters to specific needs of a niche. It targets a certain need of a demography instead of all demography. The Pepsi Black Zero-calorie drink is an example of focus strategy. As it only caters to specific need of health conscious consumers.

Examples of some Competitive Advantages are;

  • Brand Image/Identity ; The visual feel of a product/service can be a competitive advantage. Customers naturally gravitate towards better looking product as it instills trust. If it looks good, it should be good. A brand with an awkward looking image means customers will not trust it to provide quality product.
  • Customer Service ; The experience of a customer with a brand , from first to last point could be an advantage or disadvantage. Is the experience seamless or chaotic? What are your return policies? How do you handle complaints/enquiries. Do customers leave your brand happier or worse? Your service can be a determinant to retaining or losing a customer.
  • High Skilled Workforce ; The competence/incompetence of your workforce can be a competitive  advantage/disadvantage. Skilled workers have the right skills and expertise to deliver impeccable services thereby leaving your customers satisfied and loyal to you. An unskilled workforce will keep customers far away.
  • Brand Awareness ;  This refers to promoting your brand’s message. Implementing the right brand awareness strategy can help a brand win customers over. Brands with high brand awareness get more popularity amongst consumers. This could be a competitive advantage.

 

Conclusion

Your brand’s competitive advantage is what sets your company apart in the market. Identifying these advantages allows a company grow loyal customers and gain superiority over competitors, hereby increasing sales and profit.

RadioativeMedia offers brand consulting services. We can help point you towards identifying your brand’s competitive advantage.

Email : Info@radioaktivemedia.com

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