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While sorting through my book collection, I rediscovered a timeless gem that not only piqued my curiosity but also reignited my enthusiasm for the enduring relevance of ‘Differentiate or Die: Survival in Our Era of Killer Competition’ in today’s digital age.

Authored by Jack Trout and Steve Rivkin, this book was a beacon for brand marketers when it was first published in 2001. Its insights have not only stood the test of time but are more relevant now than ever before.

I was intrigued to explore whether the concept of differentiation remains as pivotal in today’s realm of brand management as it was over twenty years ago when it was first introduced.

Well, the short answer, is yes, while the debate still rages on.

Incidentally, creativity is not a differentiating idea.

It’s undeniable that the marketplace has become significantly more crowded than it was twenty years ago.

Every product and service strives to optimise attention and impressions, especially since 2020, when e-commerce experienced a rapid surge due to the COVID-19 pandemic.

The UN Trade and Development reported the share of global retail trade rose from 14% in 2019 to 17% in 2020.

To thrive in today’s world of intense competitive and ever-evolving economic environment, businesses must distinguish themselves from competitors or risk failing.

To stand out in the crowded marketplace, one must reinvent the business’ USP to differentiate from the competition. One must differentiate oneself or die, according to Trout.

Some key points that resonated with me most from Jack Trout’s book:

1.     Reinventing the USP

The million-dollar question remains: How frequently must a business reinvent itself to stay ahead?

There is no prescribed specific timeline to reinvent your USP, according to Trout. However, the need for reinventing your USP arises when the following scenarios becomes apparent in your business segment:

1. Market dynamics change: New competitors emerge, consumers preferences shift, or technological advancements disrupt the landscape,
2. Your current USP become less relevant: If your existing differentiation loses its impact, it’s time to reevaluate, and,
3. Stagnation: When growth plateaus, consider revisiting your positioning strategy.

Merely being good, is not good enough; you need to be distinct. Choosing among multiple options is based on differences, implicit or explicit.

Many people still do not understand the need to differentiate, while many realise the need but implementing a USP is a challenge for many.

Crafting a USP requires careful thought and consideration, and it’s not just about being different but about being relevant and resonant with the target audience.

One survey highlighted that 77% of consumers make purchases based on brand name and reputation, indicating the significant role a strong USP plays in building a memorable brand.

2. Improve, Upgrade, and Reinvent

Same company, same technique, different product.

Oral-B toothbrushes hadn’t introduced a new toothbrush in the twenty-seven years before Gillette acquired it.

Gillette put a team of 150 people into researching manual plaque removal. The result was a stream of new products including a floss made with a proprietary fiber, and its top-of-the-line Advantage toothbrush.

If you’re thinking of the product route to differentiate, you would be wise to study the Gillette model.

Improve, upgrade, and reinvent. 

Small companies can thrive alongside giants when they figure out what makes them unique vis-à-vis their competitors to build a niche and translate that difference into every point of communication.

3. The Bigger the Brand, Bigger the Challenge

Big brands on the other hand, must continue to maintain their edge and not lose sight of the differentiating factors that have made them successful.

As time goes by and market forces dictate, they should evolve to remain relevant even if it means sacrificing their current business in view of future trends.

The problem with big businesses is that they hang on because they don’t want to lose their business. There are many other examples of market leaders that simply died.

“The bigger you are and the more egos you have within the company, the more difficult it is for you to move fast”, Trout said.

“The ugly fact of life is that if you make a mistake, your competitors will take your business, and you rarely get it back due to the tyranny of choice out there.”

Trout sighted examples there were 180 brands of dog food and 134 cough/cold brands in the United States alone at the time he wrote the book, and most people do not really know what they want.

They buy what they think they should have and often their choice is largely influenced by what everybody else is buying.

“In a crowded marketplace, fitting in is a failure. In a busy marketplace, not standing out is the same as being invisible.”

Seth Godin

4. Leadership is a Way to Differentiate

Leadership is the most powerful way to differentiate a brand.

The reason being it is the most direct way to establish credentials of a brand. Credentials are the collateral you put up to guarantee the performance of your brand.

Humans tend to equate “bigness” with success, status, and leadership, according to Trout. We give respect and admiration to the biggest.

Bigness pays off in dollars ad cents.

A survey of male graduates of the University of Pittsburg revealed that the tallest students (6 feet two inches and over) received an average starting salary at least 12 percent higher than those who were under 6 feet.

So it is in the world of business, where height is measured by sales or market share.

Powerful leaders can take ownership of the word that stand for the category. You can test the validity of a leadership claim by a word association test.

Example, if the given words are computer, copier, chocolate bar, and cola, the four most associated words are IBM, Xerox, Hershey’s, and Coke.

When you are number one, make sure the marketplace knows it or your competitors will grab it from under you.

5. Market Specialty Is a Differentiating Idea

Consumers are impressed with those that concentrate on a specific activity of product. They are perceived as the “experts”, and consumers tend to credit them with more knowledge and experience than they sometimes deserve.

Conversely, the generalist is rarely given expertise in many fields of endeavour no matter how good he or she may be.

Common sense tells the prospect that a single person or company cannot be expert in everything.

Even General Electric (GE), the giant of electrical appliances, cannot win against “specialists” of individual categories. One example, Trout sighted was big food name Kraft is losing the fight against specialist brand names.

Trout cautioned against zealousness in extending the line of a brand that is already strongly identified with a specific identity. The result could be fatal.

“The more you add, the more you risk undermining your basic differentiating idea. Don’t force the consumers to change their perception of what you are”, according to Trout.

It was better to introduce a new product under a new brand than to use an existing strong brand, confuse the consumer and kill the brand.

Trout said companies often looked at their brands from the economic point of view, leveraging a strong brand by introducing more products under it, when they should look at the brand from the consumers’ point of view and their attachment to the brand.

“Once you stop focusing on an attribute that differentiates you, you run the risk of losing it”, Trout said.

He sighted the example of Chevrolet, once a dominant good-value family car in the US that tried to add “expensive”, “sporty”, “small” and “truck” to their identity.

Their “differentness” melted away as did their business.

6. How a Product is Made can be a differentiating Idea

Companies tend to work very hard in developing new products.

People spend endless hours producing and testing what they feel is a unique product that does its job better than anything in the market.

Consumers are also attracted to the certain “magic” in the products that improve performance, such as a new ingredient or technological breakthrough, although they may not really understand, or care, how the “magic” works.

The problem with the point of view is that in many categories, a number of products do the same things for people.

All toothpastes prevent cavities.

All new cars drive very nicely.

All detergents clean clothes.

It’s how they are made that often makes them different, according to Trout.

Whatever the differentiating idea is, if you’ve got it, flaunt it. Dramatise the difference.

Turn the differentiating idea into a full-scale marketing programme. The idea is like a nail and the programme the hammer that drives it into the consumer’s mind.

7. Who is in Charge of Differentiation?

Top management has to be in charge of making sure that a differentiating strategy is generated, communicated, and maintained.

In other words, the CEO must be involved.

Trout drew an analysis from some examples of “Why CEOs Fail” produced by Fortune magazine (21 June, 1999) that he came to the observation that top people from many companies often don’t get involved in the strategic process.

Most big moves often challenge old businesses.

The result is a reluctance to foster new ideas.

CEOs must be involved because quite often in the mid-level of companies are people with a bad case of “personal agenda”, according to Trout.

They are trying very hard to put their mark on something so as to progress up the corporate ladder. They make their decisions based not on what’s good for the company but on what’s good for their careers.

Or worse than that, they are trying to avoid mistakes that could put their careers in peril.

Another problem is the “corporate ego”.

This can be a difficult situation that could result to a modified strategy that isn’t really the same.

The higher you are presenting in an organisation, the less likely you are to come across these kinds of ego problems.

Here’s the takeaway:

As we reflect on Jack Trout’s timeless advice in ‘Differentiate or Die’ over two decades later, its message resonates more strongly than ever.

In today’s fiercely competitive market, the need to differentiate is not just a strategy for survival but a pathway to thriving and dominating your industry.

The marketplace has evolved, becoming even more crowded and dynamic, yet the fundamental principle remains unchanged: to stand out, you must be different.

Trout’s insights remind us that differentiation is not just about being different for the sake of it; it’s about being relevant and resonant with your audience.

It’s about constantly reinventing your unique selling proposition to meet the changing needs and expectations of consumers.

In a world where competition is fierce and choices abound, differentiation is the key to success.

It’s about carving out your own niche, establishing your brand as a leader, and consistently delivering value that sets you apart from the rest.

So, as you navigate the complexities of today’s market, remember the words of Jack Trout: Differentiate to thrive.

It’s not just a mantra for success; it’s a mindset that can propel your business to new heights in the ever-evolving landscape of competitive markets.