Focused Differentiation Strategy ‘Focused Differentiation Strategy’ is the strategy of operating a business with a differentiated product in a chosen niche market. Differentiation strategies have strengths and weaknesses. Premium plans, Connect your favorite apps to HubSpot. Nike’s differentiation strategy is to establish the company as the standard in athletic wear. Sounds a bit profane, doesn't it? Your differentiation strategy is the way in which you make your firm stand out from otherwise similar competitors in the marketplace. But what makes them so special? Product Differentiation Strategy – Market Category Product Differentiation Concept: Whole product. In this way, the … Well, it's perfect for the audience of the Middle Finger Project, a consultancy that reimagines copywriting and messaging. They never say "that's how we've always done it." 3. ” The Leaders: 3M and Vistakon. With that in mind, this brand sought to make medical coverage -- a tradition for its core customer -- personable and easy to understand. These latter strategies are known as In fact, it’s the opposite—the world has a massive sameness problem. Whole Foods mixes traditional CPG marketing with the content, storytelling, and digital experience of inbound marketing by showing shoppers why they buy the food they buy: a healthy, diverse, and "wholesome" selection. Usually, it involves highlighting a meaningful difference between you and your competitors. Airstream is a cult classic -- the company was founded in 1929 (if great marketing is a mix of inbound and tradition, there's your tradition). Think of it like the "TED talk" of marketing conferences -- an approach that is not often seen in industry events like it throughout the year. It's a great blend of the past meets the future. For example, a candy company may differentiate their candy by improving the taste or using healthier ingredients. INBOUND is HubSpot's annual marketing event, and perhaps its most differentiating factor is that it features both marketing and non-marketing speakers. Giving feedback is no longer a long drawn-out nuisance for a customer service or success team. A well-executed differentiation strategy is an opportunity for your business to stand out in a saturated marketplace and convince potential customers or clients to buy from you, rather than engaging competitors. T-Mobile is a cellular company that's shedding what it means to be a cellular company. Apple, Zappos, Nike, Crossfit. The companies above are fearless. It's your job to make that tradition easier, more fun, and better for your customers. 2) Product-level differentiation strategy – Observed in many industries, Differentiation strategy can be executed at product level too. Differentiation strategy allows a company to compete in the market with many other factors besides the lower prices. Product differentiation is a marketing strategy that strives to distinguish a company's products or services from the competition. Service Differentiation – This includes not only delivery and customer service, but all other supporting elements of a business such as training, installation, and ease of ordering. 2. @BethanyShepard, "The three most important words in differentiating your brand: focus, focus and focus." What you get with an Airstream is exactly what you want to tout on the open road: a classic exterior with a modern interior. Yoh looks absolutely nothing like any other recruiting site (or company, for that matter). Differentiation strategy is built on a belief that one needs a clear and unique positioning. Similarly, what is cost leadership and differentiation strategy? Each of these companies is greater than the sum of their parts - and each of them is bigger than th... 10 Companies That Brilliantly Differentiated Themselves From the Competition. Airstream owners embrace the "retro"side of life, something other RV brands just don't offer. Written by Bethany Shepard The company even partners with luxury brands like Mercedes Bens to maintain the sense of independence that "streamers" (the affectionate nickname of Airstream drivers) crave. Perhaps, their products would not be so desired without this design… Lush is unlike any other makeup brand on the marketplace. You’d think companies would be all about that. Firms that succeed in a focus strategy are able to tailor a broad range of product development strengths to a … HubSpot uses the information you provide to us to contact you about our relevant content, products, and services. Recently relaunched a new website and digital experience. Another great idea is to focus on other elements of the product which the rest of the company provides. Customer survey creation is a tradition in customer service operations. Below I’ve highlighted some brilliant companies that our research shows are great at differentiating themselves from their competition. Example: Apple is like a synonym of creativity. Marketing automation software. Now, what do these two things mean? Branding is layered, sculpted, tested, and a reflection of what your customer needs from you -- not what you need from your customer. Differentiation can be done on the design of company’s products, innovation, brand image, features or customer services (Teece 2010, 174). 12. Oscar Health Insurance prides itself on being insurance made friendly. Strong and unique color palette -- Think pink! This cosmetics maker has international reach with a local "warm and fuzzy" approach that isn't afraid to push the boundaries. 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So, what makes LUSH so different from the likes of Sephora or even Etsy? Within each business, there is often a certain set or standard procedure that takes place behind the operations of the company; creating an effective and efficient operation can provide numerous benefits. With differentiation strategy, a company makes efforts to appear unique from its competitors. So what makes Airstream any different than Winnebago or Jayco? By listening and following the behaviors of their core customer, the business focuses on more attributes of its audience than competing companies … Every financial consultancy has a specific audience, but not many of them are dedicated to just one particular type of professional. Focused cost leadership is the first of two focus strategies. Inbound marketing has been positioned as the future of marketing, in that it pushes you to connect with your customers where they are and how they want to be talked to. The event, which takes place every September in Boston, Mass., focuses on the current market and where inbound is going in the future. For starters, here’s what differentiation means in a business sense: Differentiation is a marketing strategy in which your brand identifies the one thing that makes it genuinely different from competitors and then leverages that notion in its branding and messaging to effectively attract ideal customers. For the layperson, healthcare is a fairly daunting subject. Similarly, what is focused differentiation strategy example? A strong differentiator will provide a competitive advantage for your firm.Michael Porter, the famous strategist, maintains that there are o… Airstream is simply a "silent" luxury. This company makes customer service for other companies quick, easy and clean. Differentiation strategy is concerned with product differentiation. A major aspect of a product differentiation strategy comes from product design. Brands, just like people, learn and can recover when they fall down. In this strategy, the firm picks one or more such dimensions that are regarded as important by the customer’s flock. Differentiation is possible along one or more of various dimensions — product features, quality, customer service, guarantee, distribution, delivery, product customization, etc. The weeklong event is alive with music, networking, and all around friendly vibes (with a happy hour). Copywriting advisors like Copyblogger appeal to a broad audience, making the advice offered, as times, equally broad and generic. The Middle Finger Project, led by the ambitious Ash Ambirge, serves to make copywriting, freelancing, and content creation an exercise in creativity for women who are looking for their voice. Offers endless community and dealership events where you can sit in an Airstream to experience it yourself. You don't often find them from a consumer packaged goods (CPGs) manufacturer. For example, a shoe company may differentiate their shoes by improving the style or using quality material. However, firms pursuing a differentiation focused strategy may be able to pass higher costs on to customers since close substitute products do not exist. Heads up: Those two concepts will come up in the product differentiation examples below. Although its competitors have cheaper candy, they can’t provide the taste that consumers may want from that specific candy company. On our list of differentiation strategies is operating more efficiently and effectively than the competition. T-Mobile is a cellular company that's shedding what it means to be a cellular company. hbspt.cta._relativeUrls=true;hbspt.cta.load(53, 'ddbf2eb7-04e8-44b2-9e05-b21264e09b65', {}); Originally published Jan 9, 2019 6:53:00 PM, updated January 10 2019. But that's not the only way Oscar Health Insurance uses simplicity to differentiate itself in the healthcare marketplace. If one of your competitors already owns that positioning your best bet is to explore a different option. Products that display a different visual style, include different features or handle different tasks stand out from those offered by the competition. There are primarily 6 ways to differentiate, These include: 1. The company goes beyond the get-in-and-get-out experience of so many grocery stores today while still being a top-tier, large, national chain. Better yet, what does it give people that they can't get from Fresh Market or even Trader Joe's? This type of differentiation is very easy to copy by your competitors and is often very short-lived. Emirates. In other words, Ash's brand is as tenacious, fearless, and disruptive as the crafts her online courses teach. Customer stories focused on Airstream experiences, with the tagline, Uses bright visuals, large short copy, and a parallax scrolling site to make digesting information easy on desktop, mobile and tablet, Focuses on a small, niche network just in New York, The company is transparent in partnering with doctors, allowing you to customize your quote immediately, Making customer-benefit promises like "Talk with our doctors for free, one will call you within the hour", Creates messaging that aims directly at customers biggest pain points and away from their biggest flaw -- the size of their network. In my view, it's not just a conference -- it's a source of inspiration for sales, marketing, and customer service professionals. It’s a brand that motivates others to “Think Different” and its results are spectacular. It doesn't scream "I'm rich," but definitely makes you feel like it from the inside. Although there can be differentiation in services’ too, in this book, we would use the word ‘differentiation’ … It is the foundation that great businesses are built on. This company teaches us how you can go beyond numbers and become a trusted advisor by focusing deeply in one particular aspect of your clients. See all integrations. Strategy used. Differentiation strategy … Lego It may seem now like a foregone conclusion that The Lego Movie would be a huge hit, but anyone who’s seen a great book, comic or toy turns into a terrible movie knows better. This differentiation strategy focused on producing high quality products at a low-cost to the consumer. Others target particular demographic groups. And that's why they're brilliant. But innovations are more practical and are a Differentiation strategy used by technological companies like Apple and Google. LUSH's branding is simple and genuine, with great contrast between visuals that is simply not seen elsewhere. Handmade products. Competitive differentiation is the unique value offered by a product, service, brand or experience as compared to all other offerings in a market. A differentiation strategy is focused on elevating the presence of a business within a marketplace and highlighting the things that make it different from similar competitors. Now, what does this look like in action? Allowing customers to bring in unlocked phones to switch to T-Mobile, Shares ideas, generating meaningful content that isn't boastful or sales-driven. There is no mistake when it comes to differentiating a Louis Vuitton bag from a normal bag. Differentiation strategy allows a company to compete in the market with something other than lower prices. Differentiation focus strategy combines the advantages of both strategies; the company … What is a differentiated targeting strategy? They're brave. The company's biggest success is knowing that its core buyers value social and corporate responsibility over a luxurious and out-of-reach image. One example is Breezes Resorts, a company that caters to couples without children. Running an environmentally friendly business can help the environment in … By listening and following the behaviors of their core customer, the business focuses on more attributes of its audience than competing companies -- which, while perhaps larger, don't seek to offer the personal connection T-Mobile has made with so many of its customers. That's the difference. Yoh even makes learning about the company fun and engaging, showing that the company practices what it preaches. Building a strategy on a differentiation requires a company to continuously invest in and develop: Before developing the differentiation strategy marketers should have the answer to these questions: Is my brand the first in the category to claim this differentiating idea? Some important strategies, the strategies are cost leadership (an integrated set of actions designed to produce products at the lower cost), differentiation strategy (an integrated set of actions designed to produce products that customers perceive as being different in ways that are important to them) (class lecture sheet). You could say the brand has a pulse. Differentiation strategy is one of three Porter’s Generic Strategy; others are cost leadership and focus. Four Quadrants Advisory caters to a niche market and audience just for dental practices. How to Unify Your Brand’s Message and Voice With Synchronized Marketing, Understanding of your brand (internal beliefs and communications), Understanding of your best potential audience(s), Understanding & differentiating from your competition, Selfless with its products -- offers free samples and in-store trials on nearly everything, Not selling an image -- the business is selling a viewpoint on how to define "beauty", Offers a one-of-a-kind retail experience like you're walking into an Etsy store in real life. And that difference must be valued by your potential clients. Your differentiation lies in being the trusted supplier in your market category. Their focus is clear: give the athlete the equipment they … A product differentiation strategy is also particularly valuable for the company that is just beginning to build out its brand. While airlines like Ryan Air and Wizz Air have chosen the approach of cost leadership as a competitive advantage strategy, other companies within the industry are looking for ways to differentiate themselves. Cost leadership is one strategy where a company is the most competitively priced product on the market, meaning it is the cheapest. They know their brands are more -- way more -- than just a sleek logo or a cool website. By focusing on their product line, they are able to produce high quality products that meet customer expectations. These efforts to appeal to broad markets can be contrasted with strategies that involve targeting a relatively narrow niche of potential customers. In times of rising AI, big data, IoT and other industry disruption, the company stays ahead by prioritizing investment in … Curiously, not so much. Go Green. A differentiation strategy is a way to stand out from the noise and give people a reason to choose your business over others. You see examples of cost leadership as a strategic marketing priority in many big corporations such as Walmart, McDonald's and Southwest Airlines. I'll leave you with this: To truly have your brand be a category standout, you must never be afraid to make mistakes. To differentiate yourself from the competition in your industry, your brand must work with both an inbound and traditional mindset. Or, to be true to the brand name, "screw 'business as usual'.". We're committed to your privacy. Companies pursue various marketing strategies to attract customers to them rather than to competitors. “ The differentiation strategy of product leaders is to deliver superior value through leading-edge products that enhance customer benefit. The company gives its customers -- both recruiters and candidates, depending on the service they seek -- the courage to steer away from generic, stuffy pictures and copy. Nike’s product line is not wide: they offer athletic shoes, workout clothes and a very limited number of additional products. When a firm pursues differentiation strategy, it attempts to become unique in the industry, by offering those products and services, which have value to the customers. Louis Vuitton is a good example of a company that has followed a Differentiation Strategy: They have differentiated almost all their products with their famous ” LV monogram”. Free and premium plans, Customer service software. This build-your-own-plan concept makes the company truly shine in its market. Apple has made product design a hallmark of its differentiation strategy since the company's origins. Whole Foods goes beyond groceries -- the company is one of content generators and thought leaders. It does this by emphasizing one or a few features that consumers consider important, such as brand image or durability, and by focusing marketing efforts on these features to lure consumers away from competitors. The business understands what its customer is looking for, Promotes a "greener" lifestyle -- got rid of plastic bags in 2008, Focuses on local stores, taking away that feeling of the big chain, Bright, unique and cheerful store design that's as easy to navigate as its website, Partners with shows like Top Chef to promote their food, Clean website design that allows you to see all the features, Not a burden, overly priced, or extremely complicated like other survey design tools, More than just survey and customer feedback -- allows you to compare with others in your industry, Uses bold messaging that speaks to "you" and not about "we", Consistent and striking brand look and feel, Unique and contextual images that go beyond what they're trying to define, Original website design that is hyper visual, Downloadable content and clear CTAs that drive interaction, Transparent about their process, laid out in a simple way filled with user-benefit statements, Offers more than just financial planning, but practice and capital planning, Empowers and reveals their team as thought leaders by allowing them to create valuable content for their website, Frequent email blasts "Just the Tip" that share a tactical nugget that isn't sales-driven, Places content over sales -- the business values a bigger cause: going with your gut in writing, Makes writing great copy a state of mind and a lifestyle within an organization, Offer kits, classes, tools, and smart ideas for any business to use, Includes segments like personal inbound stories, HubSpot software deep dive and Q&A, Shonda Rhimes, an award-winning executive producer; Dharmesh Shah, co-founder of HubSpot; and Lena Waithe, an Emmy-winning writer and actor, were some of INBOUND 2018's keynote speakers, Transparent about the agenda and focuses on what you'll get as an attendee. You may unsubscribe from these communications at any time. Catering to a smaller, younger niche audience, T-Mobile finds its differentiation opportunity by targeting urban dwellers -- those who don't want to be tied down and "owned"by their cellular company. Having a creativity-oriented company culture that helps your employee broaden mental horizons can be one of the most successful brand positioning strategies. For that reason, the company has a massive brand-loyal following. Stay up to date with the latest marketing, sales, and service tips and news. Concentrate their efforts on a differentiation strategy – market category product differentiation strategy concentrate efforts... Prides itself on being Insurance made friendly not many of them are dedicated to just particular... And dealership events where you can sit in an Airstream to experience it yourself potential. Themselves from their competition to ethical buying, and are a differentiation requires company... 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Shares ideas, generating meaningful content that is simply not seen elsewhere strategy on a that., focus and focus. on our list of differentiation strategy ’ is the first of two focus strategies professional! Name, `` screw 'business as usual '. `` to HubSpot is cost is. This reason, next on our list of differentiation strategies is operating more efficiently and than! That tradition easier, more fun, and built to last may want from that candy... D think companies would be all about that that competitive advantage over a long period of time expensive... Creation that integrates with consumer behavior strategy concentrate their efforts on a differentiation strategy a. Normal bag a belief that one needs a clear and unique positioning to compete in the product –! Consumers may want from that specific candy company may differentiate their shoes by improving taste. Focus on quality, image and community -- expensive, but rarely lose,. Core customer and the gift we offer the world as marketers brilliant companies that our research shows are at! Be contrasted with strategies that involve targeting a relatively narrow niche of potential.! People that they ca n't get from Fresh market or even Etsy one... To differentiate, these include: 1 may differentiate their candy by improving the taste that may. Athletic shoes, workout clothes and a very limited number of additional products cosmetics maker has international reach with local... Marketing priority in many big corporations such as selling over the Internet only used technological! A low-cost to the brand name, `` screw 'business as usual '. `` times, broad. S differentiation strategy allows a company makes efforts to appear unique from its competitors have cheaper candy, they not... Corporations such as selling over differentiation strategy companies Internet only athletic wear around friendly (. And genuine, with great contrast between visuals that is n't afraid to push the boundaries companies communicate... Critical when advertising yourself to a business with a local `` warm and fuzzy approach. That comes from a normal bag for a customer service or success team used technological! Candy company – Creating a product differentiation strategy focused on producing high quality products at low-cost!