SlideShare una empresa de Scribd logo
1 de 1
Descargar para leer sin conexión
36 strategicmarketing September–October 2013
Branding: Awareness vs Differentiation
September–October 2013 strategicmarketing 37
When brand
awareness is
not enough‘Awareness’ versus ‘differentiation’.
Dr Thomas Oosthuizen ponders on one
of the eternal branding problems.
W
hat is more important,
brand awareness or brand
differentiation? It’s an
often-asked question and the answer
is – it depends!
As a marketer, whether you enter
a market first or second will largely
determine which of the two is more
important to your situation. First entrants
to a particular market need brand
awareness first and foremost. That’s
because they will, by virtue of being
first, become the default brands unless
their quality is bad or they are adversely
affected by some other circumstance.
If you are a marketer in a first-
entrant brand you need establish
broad awareness in your target market
as quickly as possible. This creates
a strong barrier to entry for competitors
and generally makes you top-of-mind
among buyers.
Once a brand has attained such
a position, it is extremely difficult for
later-arriving competitors to unseat
it. That is why, generally, first mover
brands retain their leads in markets,
even when very strong competitors
eventually arrive on the scene.
Of course, it is a bit more
complicated than that – otherwise we
would only have one ‘first mover’ brand
operating in each market segment,
with other potential competitors simply
electing to stay out of the market
because it would be unviable. The key
requirement is that the brand must
‘work’; if it doesn’t deliver the expected
quality and value to its consumers, it
will fail, either immediately or as soon
as a better brand offering comes along.
Many global multinationals clearly
understand this well, hence the reason
they will enter markets with a dominant
marketing expenditure, excellent product
quality and distribution dominance. If
these aspects of the brand are aligned,
the rest is easy and it becomes difficult
for later entrants. Companies like
Proctor & Gamble and Unilever are great
examples of this. In SA, our own MTN
has achieved the same in Africa.
For such brands, dominance of brand
saliency is important, rather than what
they say. Their entry will generally
establish them as the generic for the
category – as in Sta-Soft being the
generic brand of fabric softener. To be
‘generic’ means the brand offers the
So the bottom line is: if you are not
brand number one in a category, tell
consumers why you are a better option
than number one. Focus on a different
benefit and be clear in your own mind
that it is one that consumers seek.
Alternatively, target a different group
of consumers who may not have been
exposed to the market leader.
Unfortunately many brands do not
understand or achieve this, which leads
to them simply being lesser versions
of the brand leader with lower market
shares, inferior volume consumption per
user, and lower profit margins. They then
float around in an ill-defined space.
Although Rolex sells fewer watches
than Swatch, Rolex has a profit margin
that correlates with its design integrity
and positioning as a high quality brand
that is worn by people of distinction.
Consumers do not even compare
Rolex with Swatch or Citizen watches,
knowing that each offers buyers
something totally different.
Coca-Cola, Rolex and
Emirates Airlines are all
examples of branding
excellence in their
respective fields
key benefits consumers of the category
seek. In telecommunications networks,
for example, it will be network coverage
and capacity. When market research
is conducted, it will normally be found
that brand leaders ‘own’ the key
benefits of the category in the minds of
relevant consumers.
Although a brand like Coca-Cola
has done a superb job to keep itself
top-of-mind and evolve over the years,
it is probably less about what the brand
says about itself today that matters.
Rather, it is that the brand speaks to
its consumers consistently, dynamically
and at a high level of spend. This is an
instance where the leadership of the
brand is so strong that it straddles its
First mover
brands usually retain
their leads
Dr Thomas Oosthuizen
has a doctorate
in marketing
communications. He is an
honorary professor in
business management
at The University of
Johannesburg, a board member of the
Independent Institute for Education
at the JSE-listed Advtech Group, and
an advisory board member of the Vega
Brand School.
category and may even have taken on a
significance that transcends its category.
Most consumer research will also
indicate that when a leading brand
starts lagging in quality, marketing
spend or innovation, it will gradually
be eroded by smaller brands offering
unique benefits. So if you lead the
market, make sure you retain that lead
… it is far easier to retain it than to
regain what has been lost.
When differentiation matters
Second, or later, entrants to market
still need brand awareness. But, more
importantly, they need to show reasons
why they should be bought instead of
the market leader.
If you are not the first entrant or the
largest brand, what you say matters a
great deal. Unless a number two, three
or later entrant brand is very clear
about what it offers consumers that is
different, it can expect to play second
fiddle forever.
To give another example; even though
Emirates is far from being the largest
airline in the world, it offers travellers
better service and the public perception
is that it has grown its market share.
So, while American Airlines flies far
more people to far more places,
Emirates is perceived as providing a
higher quality service to the wise few.
The bottom line is that, as a
marketer, you need to understand
what is required for your brand to
achieve success in the marketplace;
is it awareness/dominance, or is it
differentiation? It’s unlikely to be both.
PHOTOS:supplied

Más contenido relacionado

Más de Drthomasbrand Limited

The everyday fallacies of marketing technology: doing it right versus doing i...
The everyday fallacies of marketing technology: doing it right versus doing i...The everyday fallacies of marketing technology: doing it right versus doing i...
The everyday fallacies of marketing technology: doing it right versus doing i...Drthomasbrand Limited
 
Brand Fragmentation - Consolidation+commoditisation - MIKE'S FINAL
Brand Fragmentation - Consolidation+commoditisation - MIKE'S FINALBrand Fragmentation - Consolidation+commoditisation - MIKE'S FINAL
Brand Fragmentation - Consolidation+commoditisation - MIKE'S FINALDrthomasbrand Limited
 
Business Strategy - Consolidation to disruption - MIKE'S FINAL
Business Strategy - Consolidation to disruption - MIKE'S FINALBusiness Strategy - Consolidation to disruption - MIKE'S FINAL
Business Strategy - Consolidation to disruption - MIKE'S FINALDrthomasbrand Limited
 
Into the Digital Abyss - or The New "Vortex" of Business? Creating new compan...
Into the Digital Abyss - or The New "Vortex" of Business? Creating new compan...Into the Digital Abyss - or The New "Vortex" of Business? Creating new compan...
Into the Digital Abyss - or The New "Vortex" of Business? Creating new compan...Drthomasbrand Limited
 
More consumer data - but less insight? How to leverage consumer data and insi...
More consumer data - but less insight? How to leverage consumer data and insi...More consumer data - but less insight? How to leverage consumer data and insi...
More consumer data - but less insight? How to leverage consumer data and insi...Drthomasbrand Limited
 
When we become victims of our own constraints
When we become victims of our own constraintsWhen we become victims of our own constraints
When we become victims of our own constraintsDrthomasbrand Limited
 
Does market information, marketing and consumer research have a role in busin...
Does market information, marketing and consumer research have a role in busin...Does market information, marketing and consumer research have a role in busin...
Does market information, marketing and consumer research have a role in busin...Drthomasbrand Limited
 
What challenger brands are, how they work and how to become one. Illustrated ...
What challenger brands are, how they work and how to become one. Illustrated ...What challenger brands are, how they work and how to become one. Illustrated ...
What challenger brands are, how they work and how to become one. Illustrated ...Drthomasbrand Limited
 
How to use what makes your country unique to create competitive advantage
How to use what makes your country unique to create competitive advantageHow to use what makes your country unique to create competitive advantage
How to use what makes your country unique to create competitive advantageDrthomasbrand Limited
 
A view on brand portfolio management, innovation, profitability and corporate...
A view on brand portfolio management, innovation, profitability and corporate...A view on brand portfolio management, innovation, profitability and corporate...
A view on brand portfolio management, innovation, profitability and corporate...Drthomasbrand Limited
 
From product brands to concept brands the evolution of brand management
From product brands to concept brands  the evolution of brand managementFrom product brands to concept brands  the evolution of brand management
From product brands to concept brands the evolution of brand managementDrthomasbrand Limited
 
Impactoftechnologystrategiccommunication
ImpactoftechnologystrategiccommunicationImpactoftechnologystrategiccommunication
ImpactoftechnologystrategiccommunicationDrthomasbrand Limited
 
How social media are changing brands
How social media are changing brandsHow social media are changing brands
How social media are changing brandsDrthomasbrand Limited
 
Social media: new marketing tools –
Social media: new marketing tools –Social media: new marketing tools –
Social media: new marketing tools –Drthomasbrand Limited
 
A View On Brand Portfolio Management, Innovation, Profitability And Corporate...
A View On Brand Portfolio Management, Innovation, Profitability And Corporate...A View On Brand Portfolio Management, Innovation, Profitability And Corporate...
A View On Brand Portfolio Management, Innovation, Profitability And Corporate...Drthomasbrand Limited
 
Creating meaning in the way we satisfy consumer needs and engage with them
Creating meaning in the way we satisfy consumer needs and engage with themCreating meaning in the way we satisfy consumer needs and engage with them
Creating meaning in the way we satisfy consumer needs and engage with themDrthomasbrand Limited
 
A "mathematical" diagnostic tool for how to create and manage brand...
A "mathematical" diagnostic tool for how to create and manage brand...A "mathematical" diagnostic tool for how to create and manage brand...
A "mathematical" diagnostic tool for how to create and manage brand...Drthomasbrand Limited
 
The Old Spice Television & Social Media Campaign
The Old Spice Television & Social Media CampaignThe Old Spice Television & Social Media Campaign
The Old Spice Television & Social Media CampaignDrthomasbrand Limited
 

Más de Drthomasbrand Limited (20)

The everyday fallacies of marketing technology: doing it right versus doing i...
The everyday fallacies of marketing technology: doing it right versus doing i...The everyday fallacies of marketing technology: doing it right versus doing i...
The everyday fallacies of marketing technology: doing it right versus doing i...
 
Brand Fragmentation - Consolidation+commoditisation - MIKE'S FINAL
Brand Fragmentation - Consolidation+commoditisation - MIKE'S FINALBrand Fragmentation - Consolidation+commoditisation - MIKE'S FINAL
Brand Fragmentation - Consolidation+commoditisation - MIKE'S FINAL
 
Business Strategy - Consolidation to disruption - MIKE'S FINAL
Business Strategy - Consolidation to disruption - MIKE'S FINALBusiness Strategy - Consolidation to disruption - MIKE'S FINAL
Business Strategy - Consolidation to disruption - MIKE'S FINAL
 
Into the Digital Abyss - or The New "Vortex" of Business? Creating new compan...
Into the Digital Abyss - or The New "Vortex" of Business? Creating new compan...Into the Digital Abyss - or The New "Vortex" of Business? Creating new compan...
Into the Digital Abyss - or The New "Vortex" of Business? Creating new compan...
 
More consumer data - but less insight? How to leverage consumer data and insi...
More consumer data - but less insight? How to leverage consumer data and insi...More consumer data - but less insight? How to leverage consumer data and insi...
More consumer data - but less insight? How to leverage consumer data and insi...
 
When we become victims of our own constraints
When we become victims of our own constraintsWhen we become victims of our own constraints
When we become victims of our own constraints
 
Does market information, marketing and consumer research have a role in busin...
Does market information, marketing and consumer research have a role in busin...Does market information, marketing and consumer research have a role in busin...
Does market information, marketing and consumer research have a role in busin...
 
What challenger brands are, how they work and how to become one. Illustrated ...
What challenger brands are, how they work and how to become one. Illustrated ...What challenger brands are, how they work and how to become one. Illustrated ...
What challenger brands are, how they work and how to become one. Illustrated ...
 
How to use what makes your country unique to create competitive advantage
How to use what makes your country unique to create competitive advantageHow to use what makes your country unique to create competitive advantage
How to use what makes your country unique to create competitive advantage
 
A view on brand portfolio management, innovation, profitability and corporate...
A view on brand portfolio management, innovation, profitability and corporate...A view on brand portfolio management, innovation, profitability and corporate...
A view on brand portfolio management, innovation, profitability and corporate...
 
The paradoxes of product innovation
The paradoxes of product innovationThe paradoxes of product innovation
The paradoxes of product innovation
 
From product brands to concept brands the evolution of brand management
From product brands to concept brands  the evolution of brand managementFrom product brands to concept brands  the evolution of brand management
From product brands to concept brands the evolution of brand management
 
Impactoftechnologystrategiccommunication
ImpactoftechnologystrategiccommunicationImpactoftechnologystrategiccommunication
Impactoftechnologystrategiccommunication
 
Inverting brand paradigms
Inverting brand paradigmsInverting brand paradigms
Inverting brand paradigms
 
How social media are changing brands
How social media are changing brandsHow social media are changing brands
How social media are changing brands
 
Social media: new marketing tools –
Social media: new marketing tools –Social media: new marketing tools –
Social media: new marketing tools –
 
A View On Brand Portfolio Management, Innovation, Profitability And Corporate...
A View On Brand Portfolio Management, Innovation, Profitability And Corporate...A View On Brand Portfolio Management, Innovation, Profitability And Corporate...
A View On Brand Portfolio Management, Innovation, Profitability And Corporate...
 
Creating meaning in the way we satisfy consumer needs and engage with them
Creating meaning in the way we satisfy consumer needs and engage with themCreating meaning in the way we satisfy consumer needs and engage with them
Creating meaning in the way we satisfy consumer needs and engage with them
 
A "mathematical" diagnostic tool for how to create and manage brand...
A "mathematical" diagnostic tool for how to create and manage brand...A "mathematical" diagnostic tool for how to create and manage brand...
A "mathematical" diagnostic tool for how to create and manage brand...
 
The Old Spice Television & Social Media Campaign
The Old Spice Television & Social Media CampaignThe Old Spice Television & Social Media Campaign
The Old Spice Television & Social Media Campaign
 

Último

Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyfashionfound007
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Reportamberjiles31
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 

Último (20)

Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the company
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
Investment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV IndustriesInvestment Opportunity for Thailand's Automotive & EV Industries
Investment Opportunity for Thailand's Automotive & EV Industries
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
Project Brief & Information Architecture Report
Project Brief & Information Architecture ReportProject Brief & Information Architecture Report
Project Brief & Information Architecture Report
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 

When brand awareness is not enough thomas oosthuizen

  • 1. 36 strategicmarketing September–October 2013 Branding: Awareness vs Differentiation September–October 2013 strategicmarketing 37 When brand awareness is not enough‘Awareness’ versus ‘differentiation’. Dr Thomas Oosthuizen ponders on one of the eternal branding problems. W hat is more important, brand awareness or brand differentiation? It’s an often-asked question and the answer is – it depends! As a marketer, whether you enter a market first or second will largely determine which of the two is more important to your situation. First entrants to a particular market need brand awareness first and foremost. That’s because they will, by virtue of being first, become the default brands unless their quality is bad or they are adversely affected by some other circumstance. If you are a marketer in a first- entrant brand you need establish broad awareness in your target market as quickly as possible. This creates a strong barrier to entry for competitors and generally makes you top-of-mind among buyers. Once a brand has attained such a position, it is extremely difficult for later-arriving competitors to unseat it. That is why, generally, first mover brands retain their leads in markets, even when very strong competitors eventually arrive on the scene. Of course, it is a bit more complicated than that – otherwise we would only have one ‘first mover’ brand operating in each market segment, with other potential competitors simply electing to stay out of the market because it would be unviable. The key requirement is that the brand must ‘work’; if it doesn’t deliver the expected quality and value to its consumers, it will fail, either immediately or as soon as a better brand offering comes along. Many global multinationals clearly understand this well, hence the reason they will enter markets with a dominant marketing expenditure, excellent product quality and distribution dominance. If these aspects of the brand are aligned, the rest is easy and it becomes difficult for later entrants. Companies like Proctor & Gamble and Unilever are great examples of this. In SA, our own MTN has achieved the same in Africa. For such brands, dominance of brand saliency is important, rather than what they say. Their entry will generally establish them as the generic for the category – as in Sta-Soft being the generic brand of fabric softener. To be ‘generic’ means the brand offers the So the bottom line is: if you are not brand number one in a category, tell consumers why you are a better option than number one. Focus on a different benefit and be clear in your own mind that it is one that consumers seek. Alternatively, target a different group of consumers who may not have been exposed to the market leader. Unfortunately many brands do not understand or achieve this, which leads to them simply being lesser versions of the brand leader with lower market shares, inferior volume consumption per user, and lower profit margins. They then float around in an ill-defined space. Although Rolex sells fewer watches than Swatch, Rolex has a profit margin that correlates with its design integrity and positioning as a high quality brand that is worn by people of distinction. Consumers do not even compare Rolex with Swatch or Citizen watches, knowing that each offers buyers something totally different. Coca-Cola, Rolex and Emirates Airlines are all examples of branding excellence in their respective fields key benefits consumers of the category seek. In telecommunications networks, for example, it will be network coverage and capacity. When market research is conducted, it will normally be found that brand leaders ‘own’ the key benefits of the category in the minds of relevant consumers. Although a brand like Coca-Cola has done a superb job to keep itself top-of-mind and evolve over the years, it is probably less about what the brand says about itself today that matters. Rather, it is that the brand speaks to its consumers consistently, dynamically and at a high level of spend. This is an instance where the leadership of the brand is so strong that it straddles its First mover brands usually retain their leads Dr Thomas Oosthuizen has a doctorate in marketing communications. He is an honorary professor in business management at The University of Johannesburg, a board member of the Independent Institute for Education at the JSE-listed Advtech Group, and an advisory board member of the Vega Brand School. category and may even have taken on a significance that transcends its category. Most consumer research will also indicate that when a leading brand starts lagging in quality, marketing spend or innovation, it will gradually be eroded by smaller brands offering unique benefits. So if you lead the market, make sure you retain that lead … it is far easier to retain it than to regain what has been lost. When differentiation matters Second, or later, entrants to market still need brand awareness. But, more importantly, they need to show reasons why they should be bought instead of the market leader. If you are not the first entrant or the largest brand, what you say matters a great deal. Unless a number two, three or later entrant brand is very clear about what it offers consumers that is different, it can expect to play second fiddle forever. To give another example; even though Emirates is far from being the largest airline in the world, it offers travellers better service and the public perception is that it has grown its market share. So, while American Airlines flies far more people to far more places, Emirates is perceived as providing a higher quality service to the wise few. The bottom line is that, as a marketer, you need to understand what is required for your brand to achieve success in the marketplace; is it awareness/dominance, or is it differentiation? It’s unlikely to be both. PHOTOS:supplied