Differentiation

Differentiation

Coach Cahyadi Kurniawan

Coach Cahyadi

And in this current world differentiation is more and more important for survival and marketing is all about how to point out your differentiation to the target segment.

God creates Uniqueness. If you look in detail non of the creature in the world is the same. Even the twin, it just looks alike but they are different. And in this current world differentiation is more and more important for survival and marketing is all about how to point out your differentiation to the target segment.

Shakespeare said what is a name? a Rose is a Rose. In Marketing a brand (name) is everything, (it is also true in the Eastern Culture, believe it or not, when a child is born, the name is properly, carefully selected so that it will boost the total “energy” of that child for his/her own life, and not like the Western culture that a name is a name).

In the era of 60’s where demand is over supply, you do not need differentiation as long as you have the product some body will take it. But not now you have to differentiate so that you do not fall into the commodity trap which end up working harder and harder with no respect from your customer.

But things become commodity!

Mao Tze Tung wanted to make everything to commodity, every body wear the blue uniform, eat the same food, get the same ticket (no salary?), everything belongs to the parties, the price of a machinery is based on weight that is why the machinery from communist country are all heavy weight, (just like our ink based on RMC??). We all know communist did not work out, people like differentiation and as long as you cannot differentiate you become commodity.

Even rice, with a nice packing and a name, place of origin (Thai rice, Japanese rice), they can be sold at different price. Differentiation is not only on product quality, it can be on the packing, the service you offer, the way you distribute your product etc.

Differentiation is not Copy

The problem we face in this industry is that everybody follows everybody. Competitors sell cheap we sell cheaper (below cost!), their service is 24 hours stand by we have to do it 25 hours stand by, they pay SP we pay more SP, they entertain dinner, we fly them around the world. What is the result?  customers get spoil and take your value for grant, the industry is loosing its value.

But Customer is The KING

Yes! But do not forget your have another Kings i.e your shareholders and yourselves and all your colleagues  (employees). You have to tell your customers, if they want Coates service they have to pay, you cannot pay bad luck. Don’t waste your time.

Differentiation is about Uniqueness

Differentiation is to find an unique way of doing business which fit our organization or our organization can offer. You cannot follow everything what your customer wants and copy your competitor. If you are short you cannot be tall, find out the uniqueness of short and convince your partner, if your are Ahmad let be Ahmad, you can never be John, but use your uniqueness as Ahmad to add value to the customer.

The same argument is applied to Coates, it is terribly wrong, if you want to follow your competitor, be yourselves. Offer the uniqueness of Coates, convey the uniqueness of Coates to your customers, make them realize the uniqueness of Coates will finally add more value than the competitors and this is the only choice.

What is the uniqueness of Coates?

All the different you find between you and your competitor is your uniqueness, pay more efforts in strengthening these point, communicate this uniqueness constantly to the selected target and you will get the result.

Here I try to list out the different between Coates and the back yard industry in the corrugated ink market.

Differentiation for Corrugated Market

Parameter Coates Competitor
Scale World wide company Local, back yard industry
Technology On going research Hi-jack, learn from supplier
Pricing Rigid but reasonable Flexible low
Delivery On time Delivery as promised Famous for 24 hours per day
Overhead High Low
Safety and Health Strict regulation Who care? So far it is cheap
Selling concept Lead by teaching, reduce total cost Cheap, 24 hours service
Market Segmentation Established serious industry Entrepreneurial  aggressive company
Positioning We offer total solution Cheap and cheerful
Production site Clean, tidy, well organized “Mysterious”
Quality Rational, understandable step by step “Magic” as long as the customers accept
Promotion tools SHE data sheet, Product profile, T shirt Under table money
Souvenier that create a constant image
Service Attitude Smart and organized Work hard and fulfilled urgent service
Sales Force Educational and problem solving Work hard and by all means get the order
Financial Strong but rigid and follow the rule Smart and turn around by all means

I am sure we can use the same way to analyze the others market if you know the market well. The same differentiation strategy can be applied.

Select your customer, serve them well, introduce your bad customers to your competitor.

It is a fact you cannot delight every customer, you should select the customers who fit your style and also your organization. You can find out in the daily life that you cannot have a good communication with certain type of people, may be you can fine tune yourselves to please him/her but not for long term. That is why proverb said: “Birds of feather flock together”.

Please examine your account, if they want the cheapest and do not appreciate our service (which also means do not appreciate you) and do not pay on time, better introduce them to your competitor, don’t waste your time and break your back to serve them.

World is not only as wide as a leaf, go and find more customers who appreciate your service and are willing to pay for it.

Remember: Be Different!!!

  – Coach Cahyadi –

ActionCOACH South Jakarta business coaches  guide businesses in selecting and implementing effective and cost-efficient marketing strategies to boost results with a proven 17-week guarantee. For more information on business coaching, visit www.actioncoachsouthjakarta.com or  call 021 2567 5775 .

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Related Article(s) :

  1. How to Bundle your Product and Drive Your Competitor Crazy
  2. Growing Customer Loyalty

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Local website : http://www.actioncoachsouthjakarta.com

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