A tip on Differentiation versus Distinctiveness - The Smiling Strategist - Brand and Business Strategy and Consulting

Source: Nigel Hollis, Millward Brown

According to Empirical Generalizations about Marketing Impact, published by the Marketing Science Institute, “Long- term sales growth for a brand is derived mainly from category growth.” Such growth is hard to come by in many mature categories. But the value of a brand isn’t determined simply by sales; it is also determined by profitability.

If you can command a premium price, you can increase the value of your brand without significant volume growth. This is a considerable advantage. McKinsey finds that, if volume remains stable, a 1 percent increase in average price improves operating profits by 8 percent. That is three times the increase generated by a 1 percent increase in volume.

Unfortunately, a 1 percent decrease in price has the opposite effect. McKinsey concludes that a strategy that cuts prices to drive volume is “generally doomed to failure in almost every market and industry.”

So what can justify a price premium? Perceived differentiation. A brand can thrive at a higher price point when it is seen as a well-differentiated, desirable choice — that is, when it has a meaningful, relevant, and valuable point of difference.

Source: Nigel Hollis, Millward Brown

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Author: ROMA SINGHAL

Roma has spent over 15 years as Brand, Design and Digital Strategist carving disruptive and impactful strategies for blue-chips brands at marketing advertising organisations such as American Express, Ogilvy, Publicis Groupe, McCann, BBDO and more in Sydney, Singapore and Mumbai covering Global, AUNZ, ASEAN and India markets. She has planned and launched insightful and effective campaigns for a diverse clientele, spanning across various industries and brands. Her works have been awarded, one of them being The EFFIE Gold for Cadbury. She was also chosen as the first round judge for EFFIE Australia 2019. Last few years, she has been experimenting with her entrepreneurial spirit, having launched three planning initiatives, 1. THE SMILING STRATEGIST (www.thesmilingstrategist.com), a freelance strategy initiative working across a variety of brands and industries in a highly collaborative set-up; 2. SELFCONCEPT (www.facebook.com/selfconcept123), a self-awareness platform gathering true human insights, where training from Mind Master Tony Buzan on Mind Mapping techniques helped her think divergently; 3. ROYALE ARTISAN (www.royaleartisan.com), an online artisan gift store, which she has founded to give back to the talented rural artists. In her free time she drives her humanitarian initiatives, tries her mind at poetry, plays the guitarlele and experiments with acrylic painting on square shaped canvasses. A lover of philosophy, she is working everyday to become a better human being. To start a conversation please e-mail her at romasinghal@brandself.net. Also join her page on Linked-in @ https://www.linkedin.com/company/romasinghal-thesmilingstrategist/ for strategy tips. View all posts by ROMA SINGHAL

The Smiling Strategist

ROMA SINGHAL

Roma is Founder & Strategy Partner at Brandself. She has spent over 20 years as Brand, Design and Digital Strategist carving disruptive and impactful strategies for blue-chips brands at marketing and advertising organisations such as American Express, Ogilvy, Publicis Groupe, McCann, BBDO and more in Sydney, Singapore and Mumbai covering Global, AUNZ, ASEAN and India markets. Recently, she was chosen as one of the four female leaders to have broken down societal barriers by the hipages Group in Australia for their Empower Women in Leadership Program. Her works have been awarded, one of them being The EFFIE Gold. She sits in the APG UK Head of Planning Forum and was also chosen as the first round judge for EFFIE Australia. She is a Strategy Teacher at the esteemed Miami Ad School and a Strategy Mavin on Mavardo. She is also a Mentor at UNSW and the industry recognised Assisterhood. Last few years, she has been experimenting with her entrepreneurial spirit, having launched Brandself (www.brandself.net), a disruptive strategy studio; 2. SELFCONCEPT, a self-awareness platform gathering true human insights, where training from Mind Master Tony Buzan on Mind Mapping techniques helped her think divergently; 3. THE SMILING STAYS, a cozy Air BNB in Paddington, Sydney. In her free time she drives her humanitarian initiatives, tries her mind at poetry, plays the guitarlele and experiments with acrylic painting on square shaped canvasses. A lover of philosophy, she is working everyday to become a better human being. To start a conversation please e-mail her at romasinghal@brandself.net. Also join her page on Linked-in @ https://www.linkedin.com/company/romasinghal-thesmilingstrategist/ for strategy tips.

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Author: ROMA SINGHAL

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