Branding 101: How To Stand Out With A Unique Identity
Brand differentiation is key to brand success.
Your brand could be an entirely new business concept, such as Airbnb, which shook up the traditional accommodations market. Or, it could be the deep re-positioning of an existing brand, such as ("The Man Your Man Could Smell Like") Old Spice, which used to be found only on your grandfather's bathroom shelf.
Every successful brand must communicate a unique identity and purpose that underpins the reasons for it to be in the marketplace in the first place. For small business owners, that unique identity is especially important for a brand to compete, grow and survive. As author and motivational speaker Simon Sinek puts it, "People don't buy what you do, they buy why you do it."
Every small business can use differentiation as the cornerstone of their foundation in five fundamental ways:
Pricing
Price differentiation doesn't have to mean charging less. Starbucks was never the cheapest way to get a cup of coffee. Yet, Starbucks has successfully promoted premium quality by being higher priced, similar to the strategy Nike achieves with sportswear. Alternatively, beat the competition's pricing with your core product and add value in some meaningful way — think of a pizza or a frozen yogurt with optional toppings at additional cost.
Product
Stand out from the crowd, targeting a niche market by offering a different angle on your product. Etsy began as a paradise for craft makers, hard-to-get supplies and a showcase for selling handmade items. Dyson carved out an innovative niche in small appliances by introducing the bagless vacuum cleaner. Both have expanded unique selling points into auxiliary product lines.
Distribution
How your product reaches the consumer is an essential part of brand identity. McDonald's, Amazon, Domino's, Pizza, FedEx, eBay and Uber are classic examples of a brand built on delivery and convenience, successfully disrupting the traditional delivery model in their era.
Customer Service
Make a clear statement about your commitment to customers. Zappos built an online business by offering fast, free shipping and free returns while focusing on the internal "Happy Experience Form" to create loyalty. Happy customers provide loyalty, share recommendations and spread word-of-mouth about a degree of trust that drives business like nothing else.
Social Conscience
Connect on an emotional level to your target customers by being a good corporate citizen. Get involved in community outreach, support local charities, be a green operation, donate product or provide jobs to veterans. When a brand communicates authentic values at its heart, enormous customer goodwill and brand loyalty are created, according to Harvard Business Review. Ben and Jerry's emphasizes eco-friendly practices, Warby Parker donates eyeglasses, Levi Strauss innovates manufacture using less water.
For small business owners, it's critical to success that a brand stand out from the crowd. One or more of these five essential points of differentiation ensures a unique identity that is fundamental to success.
Unless otherwise stated, opinions expressed are those of the respective authors and not necessarily those of the sponsoring party, City National Bank (CNB). The information is provided without warranty and no recommendation or endorsement by CNB is intended or should be inferred unless specifically stated.
Visit City National Bank's News & Insights for small business tips, trends and updates.
For more tips and inspiration for small business owners,
visit CBS Small Business Pulse Los Angeles.
