Differentiating Yourself: Avoid the "Me-Too" Trap
In the competitive business world of today, a successful model is quickly emulated. No sooner does a company develop a ground-breaking product that captures a significant share of an existing market, or better still, opens up a new market, than imitators start launching similar products to cash in.
In fact, most elements of successful products can be copied and quite often are. This goes for the product itself, its advertising, its publicity and its selling strategy. Copying a product has several obvious advantages over trying to come up with something entirely new; the market has already been developed, the pricing levels are known, and the main selling points have already been communicated. They're safe!
But not many me-too products become genuine successes. They hang off the coattails of someone else's efforts and usually survive on the basis of price, not real competitive advantage. And that's their vulnerable point.
Worldwide, businesses like Dell and Starbuck's not only start up in hotly contested markets but, once successful, face a proliferating number of copycat rivals. How do they manage to survive, and indeed, grow? Basically, they've taken a product and turned it into the core of an experience that consistently delights customers. This keeps them standing out from all their competitors.
Something else - Dell and Starbuck's have created successful business models that are extremely difficult or impossible to emulate. Their combination of elements is so unique that they have the high ground to themselves and no competitor can simply clone what they are doing. So, how can you avoid the me-too trap? Here are seven pathways to being uniquely successful:
Don't sell on price. All you get is customers who buy on price and that means they're trying to keep your profits as low as possible. It's even better for them if you sell at a loss and when you fold there's always another supplier out there somewhere.
Set out to be different. Look for what's not being done rather than trying to copy what's already happening. Be a leader, not a follower.
Know what your customers need. If you know what people truly need and want, you can create a package that delivers it, and delivers profits to you as well. Get away from a focus on products and think about customer satisfaction.
Make the product attractive. Whatever you are marketing, give it visual appeal. This applies to a product or a business premises.
Make individualized offerings. People enjoy being able to personalize their possessions in some way. Apple Computer has been able to capture many young consumers by offering products in a wide array of color combinations.
Make it easy to buy from you. Have as many ways as possible that a customer can find you and make a purchase. If your product can be bought from a store, from a catalog and from a website, you've actually created channels to reach three different types of shoppers.
Be consistent. Start with high standards and maintain them. Deliver the same delight at every customer touchpoint and make changes evolutionary rather than revolutionary.
Imitation may be the sincerest form of flattery but in business you don't want to be flattered into the red by look-alike competitor products. Look for ways of providing that something extra to your products that will make them harder to imitate. |
