Published July 2004

Separate your company from category clutter

Leveraging your competitive advantage will help separate your company from those vying for customers in your product or service category. What is the “one thing” you do better than the competition?

Many companies attempt to communicate too many competencies to their audience. It’s hard enough to be known for one thing — it’s nearly impossible to be known for many.

My favorite branding adage is “If you try to be known for all things by all people, you’ll end up being known for nothing by nobody.” Poor grammar, but you get the point. So how do you land on the one advantage that will separate you from the clutter? Identify your “core competency.”

A core competency is the “one thing” you do better than your competitors — and it needs to be valued by your target market. The objective is to establish a sustainable competitive advantage. The way to do so is by focusing (not fragmenting) your communications on your core competency.

If you’re not clear on what your core competency is, there’s a simple way to surface one. Look at your business through the traditional marketing mix of product, price, place and promotion. Following are a few examples to stimulate ideas.

• Product: This includes any product or service competency. Starbucks isn’t the category Goliath by accident. Its trademark coffee is dark, rich and bold. Its core competency is the way the company roasts its beans — and customers will wait in line to pay a premium.
• Price: This can include price, discounts, value-added or financing. Costco launched the “big box” category in 1982. Based on its volume buying power, the company can offer an enormous variety of good products at substantial savings. Again, customers are willing to wait in line.
• Place: This is the function of distribution, location and delivery. Amazon’s distribution model is obviously e-commerce, and the company has clearly gone way beyond books. Its core competency is a virtual warehouse “of information” — and the convenience it provides customers.
• Promotion: This part of the marketing mix includes any form of external communications. When Safeco bought the naming rights to the new Mariners stadium, it established a core competency no competitor could duplicate in this marketplace. The company’s exposure has increased exponentially.

My four examples have two things in common: They are all Fortune 500 companies, and they are all headquartered in Washington state. I used larger companies because we all know their stories.

This process is still applicable for smaller companies. In fact, I believe it’s easier for smaller companies to identify and leverage a core competency because (in most cases) their competition isn’t as sophisticated at positioning.

You should also look at nontraditional elements of the marketing mix, such as people and packaging. Look at what Barrier Motors is doing with their people, and what Heinz Ketchup did with a squeeze bottle.

If this discovery doesn’t surface a core competency, innovate one. Look outside your category for ideas that might translate to your business. In either case, separating yourself from the clutter will translate into more business.

Andrew Ballard, president of Marketing Solutions Inc. in Edmonds, develops brand leadership strategies for businesses and teaches strategic marketing through Edmonds Community College. He can be reached at 425-672-7218 or by e-mail to andrew@mktg-solutions.com.

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