In every gold-rush and hype-cycle there companies that discover a perceived untapped market. The reasoning goes something like... This is an xx Bn market, if we get 1% of it, we can be...

The reality is that there are very few new ideas. It's more likely that what you have stumbled upon is a new way of delivering an old idea. The problem hasn't changed, but the potential solution has.

True disruption and innovation should be applauded. Lazy and complacent brands deserve to have their market share eroded... But if you are in a competitive market then here are some things to consider.

Many Strategic Marketing projects I get involved in can be boiled down to 2 related fundamentals

1. A clear understanding of your competitors.

If you don’t think you have any competitors, then that’s your problem right there. Not only do competitors validate your market and proposition, they provide an antidote to laziness and complacency. Smart marketers understand that competitors are not always obvious.

Think about F1. There is only one Formula 1 championship. Does that mean it doesn’t have any competition? No. F1 competes for fans time and attention, it competes for sponsorship budgets, it competes for media coverage and more. F1 competes with theme parks and malls on a Sunday afternoon. It competes with Golf, Rugby Football and Yacht Racing for sponsorship. It competes with every other entertainment property on social media and news coverage. And F1 knows it has competition, which has helped it to develop a better product.

So, the question you need to ask first is - Who are your competitors?

2. Differentiation From Your Competitors

Once you really understand who your competitors are you need to be able to successfully communicate why you are different - why your customers should choose you and not the competition.

• The worst of all possible strategies is to compete on price alone.
• The best of all possible strategies is to create a strong brand.

Building a trusted, recognisable brand can take time, and money. So in the meantime, you should focus on the things that are in your control. For example - you might be more agile than you competitors, you might be able to bring products to market faster.

Just as people forget what the C and the O stand for in CMO, people also forget what the U stands for in USP. In the age of AI, unique is something that is hard to find. The definition of unique is pretty simple…

being the only one of its kind; unlike anything else.

That’s tough. AI is not programmed to be exceptional or different or unlike anything else. In fact most LLMs are designed to be the same as everything that has come before.

And so, just like Keywords have a long-tail, so do USPs. Companies in Dubai do this a lot, often with humorous results - e.g. The biggest, the tallest, the most expensive… A word of warning - most of these selling points are not defendable - someone can build something bigger, taller and more expensive. Keep in mind your buyer personas - do they value bigger, taller, more expensive? Also be careful of legislation relating to making misleading statements in your advertising. If you say you are the best - then you need to be able to back it up.

It used to be that distance was a differentiator, and to some extent it still is. Even though I have access to 500 hotels within a 20 kilometer radius, that drops to 100 in a 5km radius and 2 attached to the Mall of the Emirates. Like long-tail keywords - the demand in a smaller area is lower, but relevance is higher.

So, the question you need to ask second is - How are we different from our competitors? What makes us so special? Why should customers choose us?

When you think about it, there are many ways that you can differentiate yourself, even if you are a start-up or smaller company. Some companies leverage their founder or leadership team - this works for B2B or raising money, but might be less useful in a consumer play. Having said that - celebrity brands like Goop are only really differentiated by the star-power behind the idea. In other words, if you are not Ryan Reynolds this strategy may not work.

Here are some strategies to think about.

• Exclusivity & Scarcity - This is a bit of market manipulation, but if you limit the supply of a product, you can make it more valuable, if there is demand. You need to go back to question 1 though - who are your competitors? Can your customers easily switch if they can’t get your product?
• Customer Journey and Experience - This one has been used successfully by neo-banks and fintechs to disrupt traditional banking and financial services. Technologies like Digital ID, facial recognition and biometrics and open-data have made onboarding quick and simple in comparison to filling out endless forms and waiting for manual review. Normally I would give a shout-out to Revolut here, but their support is lacking. Support is another way to differentiate. Customer-centricity is a differentiator - maximizing lifetime customer value over short term profit can lead to increased brand loyalty and the creation of net promoters and evangelists.
• Disruptive Business Model - The Covid19 pandemic was a wake-up call to a lot of businesses. Lockdowns and quarantines and disruptions to supply chains and customer behaviour forced companies to ask - why are we doing it this way? Examples include AirBnB, Uber, Bitcoin and many more…

Have you ever been on a flight and heard an announcement like…

Thank you for flying with us - we know you had a choice - so we appreciate you choosing us. All customers have a choice - so why should they choose you over your competitor?

Want to build a defendable market position and differentiated offer? Talk to us.