Brand differentiation is an important aspect of a brand marketing strategy. It enables companies to reveal their profitable qualities which helps develop a unique selling proposition. This way, they understand their competitive advantage and stand out among rivals.

Why is brand differentiation important?

Customers don’t value brands that sell the same items and provide them with the same feelings. It makes them believe that those companies are easily interchangeable. This can cause a price war among brands because the only thing left to compete for is the price. As a result, undercutting your competitors’ prices leads to lower net profit.

To avoid predatory pricing, companies differentiate their brands. This strategy provides them with both short-term and long-term goals. The main one is to find your competitive advantage — a unique offer that your rivals don’t have for their audience. It will help boost your market share in the long term. As a result, you’ll increase your targeted audience, sales volume, and revenue.

In addition, a clear and valuable unique selling proposition will help you build an army of loyal clients who love your brand not only for your product but a positive user experience and values you share. Hence, it’s crucial to thoroughly analyze your potential clients to reveal their problems, wants, and needs. This way, you’ll create a successful brand differentiation strategy.

So, let’s find out how to create one for your business.

5 Brand Differentiation Strategies

  1. Become an innovator
  2. Choose a winning pricing strategy
  3. Solve clients’ unique problems
  4. Appeal to emotions
  5. Deliver unique customer support

In this section, we’ll share some ideas that will help you differentiate your company from competitors.

  1. Become an innovator. This is a sure way to stand out. You can either create a product that people have never seen before or optimize and improve an existing one. For this purpose, you need to carry out research to understand your customers’ needs, pain points, preferences, etc. Brands that bring innovations to the market are the most successful, remarkable, and trusted.
  2. Choose a winning pricing strategy. You can either differentiate your brand by the lowest price for the high-quality product and this will make you a leader in the mass market, or you can become a premium brand charging more for a better experience like Starbucks does.
  3. Solve clients’ unique problems. You may successfully occupy a concentrated niche offering a unique quality that your competitors don’t provide. Today custom T-shirt design or sewing lingerie according to personal measurements is not surprising but once someone came up with this idea. So, you can also create a better product.
  4. Appeal to emotions. People will definitely remember such a brand and come back for an extra dose of nice feelings. These brands sell not products but rather experience customers have after buying them. Coca-Cola is associated with joy, happiness, holiday; Nike motivates people to take action with their “Just do it”; Apple makes its clients feel like they belong to something huge by selling products that have their own ecosystem.
  5. Deliver unique customer support. While taking care of a prospect before the purchase is mundane, do your best to support your client after the sale. You can offer a prolonged guarantee, or any special and personalized services depending on your product type. Customers appreciate brands that care after they're paid.

Congrats, now you know why brand differentiation matters, the benefits it brings, and have 5 effective strategies at hand.

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