Differentiate Or Die


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its a part of my detailed .ppt with notes as well. i had put so much hard work into it as i had to present it.

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  • A company works very hard in developing new products. Dozens of engineers , designers, manufacturing people spend hours to make and test that unique product. But marketing folks concentrate on their ads packing n promotion and the most powerful differentiating idea is ignored. The magic ingredient is ignored. This is necessary because of the several products available are doing the same thing for the people. Like all toothpastes prevent from cavities. Also all detergents clean clothes. so products can also be differentiated by focusing on the technology & ingredients used.
  • Differentiate Or Die

    1. 1. HOW A PRODUCT IS MADE CAN BE A DIFFERENTIATING IDEA <ul><li>People don’t care how the product is made; all they care is what the product does for them. </li></ul><ul><li>Identify the magic ingredient - a piece of technology or design or a process that creates the product. </li></ul><ul><li>Give an impressive name to the magic ingredient and get it patented. </li></ul><ul><li>Communicate that ingredient to the customers and dramatize the differentiating factor. </li></ul>
    2. 2. <ul><li>Crest launched cavity prevention toothpaste and made every one know that it contained “Fluoristan”. </li></ul><ul><li>AccuRay a company that makes quality control system for the paper industry which helps in reducing wastage by quickly spotting any imperfections, their magic ingredient was -‘Patented Prism Technology’. </li></ul><ul><li>When Sony had started its dominance in television, it created a fuss about “Trinitron”. </li></ul>
    3. 3. <ul><li>Fair & lovely - “Ayurvedic Kumkumadhitailam” </li></ul><ul><li>Silicon graphics pioneered 3D/visual computing workstations- “a geometry engine”. </li></ul><ul><li>Carton wala Good milk which is flash heated , kills only bacteria not nutrients. </li></ul><ul><li>Dove has been no.1 soap in N America for years because it contained moisturizing lotion. </li></ul><ul><li>Pizza hut claims that their pizzas are made of fresh ingredients teasing Dominos as “bassi thakela”. </li></ul>
    4. 4. <ul><li>People think that handmade products are like buying art and are worth more because more care and skill is required for eg. ultimate lawn mower, craftworks. </li></ul><ul><li>What started as a hobby and ended as a chain of 2000 stores in the US now known as Papa john’s pizzas which uses a better/expensive concentrate than his competitors. </li></ul><ul><li>Pampero- big ketchup company in Venezuela ignored their differentiating factor and suffered. </li></ul>
    5. 5. BEING THE LATEST CAN BE A DIFFERENTIATING IDEA <ul><li>Position yourself as “New and Better” to outpace competition. </li></ul><ul><li>Intel dominates the market by upgrading the microprocessors - Pentium lV and soon it will be v, vi, vii …. </li></ul><ul><li>Gillette has no close competitors, called as next generation blades. Latest technology, innovative – $750 million in Mach lll. </li></ul>
    6. 6. All customers want their favorites to improve <ul><li>So if the companies are introducing a product as a next generation product then it should be better in the terms of its </li></ul><ul><li>working, </li></ul><ul><li>quality etc </li></ul><ul><li>when compared to the existing product. </li></ul><ul><li>eg Lange- high performance boots for skier’s introduced “rear release system”. </li></ul>
    7. 7. <ul><li>To be latest is always an advantage but </li></ul><ul><li>The idea mustn’t tamper the tradition ( pre-shelled peanuts). </li></ul><ul><li>It must be a better solution ( Kodak has killed their line of extension). </li></ul><ul><li>And it should solve a real problem. ( Dow chemical co. - antifreeze coolant and claimed that the “new coolant does no harm if it leaks into the engine”). </li></ul>
    8. 8. HOTNESS IS A WAY TO DIFFERENTIATE <ul><li>Be Hot ! Showoff ! Got it flaunt it ! Boast ! BE TRUTHFUL </li></ul><ul><li>Compare the sales with competitors/yourself. </li></ul><ul><li>Show the growth in sale during any period of time. </li></ul><ul><li>Show the quotes or columns of industry experts who write about your co. </li></ul><ul><li>People think that a third party like local newspaper, or a neighbour are impartial. </li></ul>
    9. 9. <ul><li>Some companies are afraid of boasting. </li></ul><ul><li>Ron Higgins, CEO, Digital Island (global internet service provider) said </li></ul><ul><li>“ Every positive article is worth a </li></ul><ul><li>$ 1 million”. </li></ul>
    10. 10. GROWTH CAN DESTROY DIFFERENTIATION <ul><li>Growth kills uniqueness. </li></ul><ul><li>“ We don’t have a desperate need to grow. We have a desperate desire to grow.” </li></ul><ul><li>Distraction – Silicon Graphics </li></ul><ul><li>Line Extension – Mc Donald’s </li></ul>
    11. 11. <ul><li>Damaging your difference by growing beyond their original identity. </li></ul><ul><li>Volvo instead of being known as a safe, tank like car is known as sporty convertible. Does it sell? </li></ul><ul><li>Or how about Nike perceived as equipment manufacturer? After athletic shoes and clothing. </li></ul><ul><li>Dabur into the telecom sector, or Kodak into fast foods. </li></ul>
    12. 12. Multiple brands / Single brands <ul><li>Multiple Brands </li></ul>Gillette Others 65% Nike Pepsi 30% Others Big single brands
    13. 13. Do it the right way <ul><li>Follow the complimentary approach- the brands compliment rather than to compete with one another. </li></ul><ul><li>Different names. </li></ul><ul><li>Different positions. </li></ul><ul><li>Different target audiences. </li></ul><ul><li>Hero Honda has a range from Splendor to Karizma . </li></ul><ul><li>Bajaj – Boxer, Wind, Pulsar, Avenger . </li></ul><ul><li>Nokia has 1100, 3310, 3102, 6600, 6630 6680, 6681, 7250, 7650 , N Series…. </li></ul>
    14. 14. A Spanish Multibrand Story <ul><li>Spain’s national oil company was privatized, the new one was called Repsol. </li></ul><ul><li>Repsol - the brand for the car. Concept here was “the best for your car”. </li></ul><ul><li>Campsa - the brand for the service. “60 years of service”. </li></ul><ul><li>Petronor - the brand for the price. </li></ul><ul><li>…… .. And they together retain the 50% market share </li></ul>
    15. 15. <ul><li>Product sacrifice </li></ul><ul><li>Attribute sacrifice </li></ul><ul><li>Target market sacrifice </li></ul>DIFFERENTIATION OFTEN REQUIRES SACRIFICE
    16. 16. <ul><li>Differentiation requires sacrifice. It's fatal to try to be everything to everybody in the marketplace. </li></ul><ul><li>Federal Express – had just sacrificed other services and they made overnight supply as their main difference. </li></ul><ul><li>Marlboro – sacrificed menthol & ultra lights </li></ul><ul><li>Duracell – had sacrificed other kinds and concentrated only on Alkaline batteries and forced Eveready to back off. </li></ul>
    17. 17. <ul><li>It is about adjusting to local culture, legalization, and production capabilities. </li></ul><ul><li>“ It happens only in India” </li></ul><ul><li>Mc Donald’s - Mc maharaja or Mc aloo tikki. </li></ul><ul><li>Kellogg’s corn flakes with cold milk . </li></ul><ul><li>Nestles Nescafe had to be flavored to Indian likes and renamed as Sunrise which beats the global champ Nescafe in India. </li></ul><ul><li>Pizza Hut -“based in the London, toppings Raveena Tandon”. </li></ul>BIENG DIFFERENT IN DIFFERENT PLACES
    18. 18. <ul><li>Remember your difference. </li></ul><ul><li>Consistent after being contrary. </li></ul><ul><li>Pepsi is not Pepsi if it is not brown – Pepsi blue </li></ul><ul><li>Mc pizza may sound fake because they are known for hamburgers. </li></ul>MAINTAINING YOUR DIFFERENCE
    19. 19. <ul><li>There are examples where CEO’s have miserably failed due to lousy strategy than lousy execution. </li></ul><ul><li>Robert Allen; CEO of AT&T, instead of leadership differentiation they tried to getting into computers costing them billions. </li></ul><ul><li>Michael Quinlan; CEO of Mc Donald’s, he had tried all the mc pizza, mc this, mc that and failed to use their hamburger specialty. </li></ul><ul><li>John Sculley; CEO Apple computers, he had failed to prevent and maximize the ease of use attribute that Apple enjoyed. He believed in the complicated PC's and lost in the market. </li></ul>WHO IS IN CHARGE OF DIFFERENTIATION?
    20. 20. <ul><li>Jack Welch, Herb Kelleher (southwest) had his own strategies that paid off. </li></ul><ul><li>Jorma Ollila the CEO of Nokia had to sacrifice computers, cables, TV’s and concentrated on Mobile Communication. </li></ul><ul><li>Trust your instincts and have a strong visual identity. </li></ul>THE GOLDEN RULE
    21. 21. <ul><li>Thank You </li></ul>