Discovering Differentiation

In a 1997 Harvard Business Review article titled ‘Discovering new points of differentiation’, Ian C. MacMillan and Rita Gunther McGrath argue that if companies examine customers’ entire experience with a product or service – the consumption chain – they can uncover opportunities to position their offerings in ways that neither they nor their competitors thought possible. They list a set of 11 questions to help identify new, consumer-based points of differentiation.

I took their list of questions and figured out brands that have used their framework effectively. The result is here for you to see. Figure out how can you differentiate your brand asking these simple questions.

1. How do people become aware of their need for your product and service?
Very often the consumer doesn’t know if she needs the product. We never needed a vacuum cleaner, for instance. The hell, even after buying it we never use it. When was the last time someone in your house used it? But we still bought it, didn’t we? Coz the Eureka Forbes guy came home demonstrated the product and brainwashed our wife or mother or sister into buying the damn thing. Now you know why most Indian homes still don’t have a microwave oven. The damn microwave guys never explained why we should ever buy one.

2. How do consumers make their final selection?
Case in point is Preethi mixie. The housewife typically enquires her friends and relatives when buying a mixie, a fact Preethi mixie used smartly in their advertising. Recall the ad. A collage of shots of different women, each one talking about the virtues of Preethi mixie and ending their quote with the words, ‘Buy a Preethi. I guarantee’! No wonder Preethi mixie is a bestseller today.

3. How do consumers order and purchase your product or service?
Look at what telephone & net booking of tickets, along with home delivery, have done to Sathyam cinemas. One thing movie goers hate is to go all the way to the theatre to find the tickets full. This, apart from other reasons, curtailed movie-going habit and many cinema theatres have been closing down. Not Sathyam that is growing stronger than ever. They tackled the root of the problem, and bingo, it is one of Madras’s most sought after theatre complexes today.

4. What happens when your product or service is delivered?
Have you heard of a video rental brand in the U.S called Netflix? They screwed Blockbuster and Co and revolutionized the way movies were rented in the U.S. Visit their site and amaze yourself with their unique delivery model.

5. How is your product or service paid for?
Most new home buyers depend on a home loan to buy their dream property. Hygrevar Home & Hearth, a leading Madras-based real estate brand realizes this and they not only sell their property but also help their customers get a home loan and help them complete all loan related formalities as well. No wonder, this helps differentiate Hygrevar from thousands of other real estate brands around!

6. How is your product stored?
Realizing the small space in bathrooms and the consequent small cabinets to hold toothpastes, Close up tooth gel redesigned its pack to make it stand up on its lid, thus making it easy for the consumer to store it. Smart, wouldn’t you agree.

7. How is your product moved around?
Imagine if a cooking gas brand gave free trolleys to the housewife to help her place gas cylinders on it and also move it around easily. The consumer might choose such a brand over others since she could lift it and move it around easily, without having to depend on others to help her.

8. What is the consumer really using your product for?
Arm & Hammer found that their baking soda made a great refrigerator deodorant and hence repositioned it and marketed it that way…successfully too.

9. What do consumers need help with, when they use your product?
You are working on a word document or a PowerPoint presentation and you have a doubt. It’s late in the night and you can’t call your friend. Wouldn’t you be grateful if Windows had a phone-in-help-centre - someone sitting 24x7 to answer your questions, clarify your doubts and suggest ideas? What can you offer for your product or service?

10. What about returns or exchanges?
Readers’ Digest uses this extensively and effectively. ‘Get a one-year subscription along with the free gift, read the magazine and if you don’t like it your money is refunded. While you get to keep the gift still’!

(It’s a pity this facility is not extended to matrimony!)

11. What happens when your product is disposed of or no longer used?
Apparel manufacturers use this to help consumers dispose their old dresses and by doing so inducing them into walking into their store to buy new ones. Recall their offer ads: ‘Gift your old pair of jeans and get Rs.250 off on our new one. Your old jean would be donated to XXX charity.’