The Case for Sustainable Differentiation

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Brands that exist in categories with the most parity (cars, soft drinks, cosmetics, fashion) understand that since their rational benefits are so close to what competitors offer, emotional differentiation is truly the key. That's how Coke (KO) and Pepsi (PEP) justify hiring seven-figure celebrity spokespeople, hoping the emotional connection consumers have with the stars rubs off on their products.

That's not to say your brand should hire a celebrity spokesperson (most, in fact, should not—see "The Trouble with Celebrity Endorsements"). There are many ways to create an emotional connection without resorting to the danger of tying your brand to, oh, say, the greatest golfer of our time. But that doesn't mean that creating an emotional connection is easy.

The Rationale of Likability

One obstacle you may have to deal with is left-brain types within your organization who simply don't understand the realities of consumer behavior. They think a brand's appeal can be boiled down to formulas and spreadsheets—often making their arguments wearing designer clothes and sipping bottled water, oblivious to the irony.

People buy products and services for a whole host of reasons—some of them rational, some emotional. In well-established categories where a great deal of rational explanation is unnecessary, likability becomes all the more important. To the extent that your emotional differentiation rewards people (the smell of a freshly baked cookie, the sound of a finely tuned engine), it will build affection in their minds. And that affection will pay off in increased trial and brand loyalty. True, this takes time, but the personality your brand develops will be yours alone. That's the meaning of sustainable differentiation.

It's not easy. Industries of all stripes can get so inbred that it's difficult for any one player to break out. Too often, brands focus on what others in their category are doing and end up advertising to each other as they fight over the same mental turf. That's why innovation usually comes from outsiders.

If a competitor of yours has carved out a sustainable niche, don't attack its strength. Study how it was done, recognize the underlying principles, and apply those principles to your unique set of circumstances. Don't try to mimic the Mini or take a bite out of Doubletree; find your own emotional corner of the world and own it. The deeper you go with it, the more differentiated—and sustainable—your brand will be.

Steve McKee is president of McKee Wallwork Cleveland Advertising, a firm that specializes in helping stalled companies rekindle growth. He is the author of the new book, When Growth Stalls.

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