Let’s see how good your memory is…do you remember any of the following ten products/brands?
|
Pan Am |
Oldsmobile |
|
Hummer |
Compaq Computers |
|
Wachovia Bank |
Woolworth’s Department Store |
|
Cingular Wireless |
Diner’s Club |
|
Levitz Furniture |
Tab (soft drink) |
Do you know what they all have in common? They were all once iconic/recognizable brands that no longer exist! So why do successful brands become commoditized? Here are the top twelve reasons:
- Market saturation/Too much supply
- Lack of perceived value/Inability to articulate value
- To many competitors
- Inability to differentiate product, service or Brand
- Competitors offering discounted pricing
- Internet providing “free” or “low cost” solutions
- Market believing they can get the same products from someone else
- Maturing market
- Lack of innovation/product development
- Ignoring trends, market place conditions, competitive forces, etc.
- Reacting to competitors (or the market) versus being proactive
- Rapidly changing technology/innovation
So what actions should a company take to avoid commoditization? Here are tried and true ways to avoid the commoditization trap:
Find your voice…your unique market message (Leverage your Brand Positioning Strategy)
Understand how your customer defines value (Quantify the value you bring)
Be an expert on the unique needs of your customer (Offer solutions to address their needs)
Better leverage social media (LinkedIn, Facebook, Twitter and YouTube)
Become the subject matter expert
Weave a web of influence…avoid single-point failures
Sell value…not price
Assess and focus on your strengths…not your weaknesses
Provide quality products at a fair price
Deliver customer service excellence
Make complex solutions less complex
Create visions for new ways of doing things
Don’t let your competition define you…increase your feet-on-the-street
Happy New Year!
