Start-ups, small and medium companies frequently concentrate on elements of their business such as distribution, logistics, product development and service offering structures. Although all of these elements are important, they are sub-entities of an overarching element. The significant question that every company should in truth be inquiring and mulling over is: “What’s our value proposition?” or “What will we be valued for?” In short, companies should be focused first on their brand value proposition.
A brand’s value proposition is not about the company’s products or services. A brand value proposition is the articulation of a highly valued outcome or effect the customer desires. A clear brand value is a requirement for a company even to begin on the path to developing their business. It cannot be discovered simply by starting the brand, nor can it become established using marketing. A brand must provide a coherent articulation of their value at the very beginning of their journey to differentiate themselves and thrive. The brands that will succeed are those that can deliver value beyond and or before their competitors, in the mind of the consumer. These brands also will often deliver the value beyond or before their prospective customers’ expectations. A brand can give all the reasons why it believes it deserves to succeed, but unfortunately, the brutal reality is that a brand only stands out when and where customers think they do.
In every business category in today’s ecosystem, an increasing number of businesses are being commoditized due to the abundance of customer choices available. In this environment, it is the customer who ultimately determines who leads and who follows. This rule applies whether a business sells products or services and whether they are large or small. When customers possess an abundance of choices, the landscape of competition is always ferocious. The brands who come to dominate their market can convincingly signify an “idea of value” in the minds of the customer. This idea of value is usually in plain language and is not available from the brand’s competitors in their category.
Here are three key brand value models that a company can use to differentiate themselves. These models will require a company to answer the questions in the model with the clarity of vision and resolve of confidence in their current and continuous actions. By doing that, the brand can create a “competitive advantage” in the business ecosystem and marketplace.
Model 1: New Value Pivots on the Introduction of a Novel or Innovative Idea
This brand value model is addressing the game-changer territory. The game-changer territory is inhabited by companies who either provide an answer to an old, deep-rooted need in a new way or bring a novel and innovative way of accomplishing things to market that conceivably was not possible in the past. The ideas’ advantage may be conceptual, technical, or ecological. A lot of new companies and start-ups claim to operate in this space, but very few actually are this revolutionary or disruptive.
Model 2: Creating Improved Value or Creating Tangible Value
Companies with this type of brand value are seeking to rethink or revitalize a concept or model that consumers are previously familiar with, but are possibly discouraged and or frustrated by. Once one moves beyond the PR hype and advertising slants, most new businesses and the products they offer can be classified here. This “scion market” strategy is about building upon an already established consumer need and usurping existing companies with a novel product or service. The strategy can also be used to add to an existing consumer need, or develop a new base of consumer need. This is achieved either as a result of providing something that hasn’t been available up until now that consumers desire, or by drastically shifting trading structures like availability, price, and in some rare cases selection. This is a highly difficult space in which to become successful, for the reason that too many start-ups come into the market in this way. They also often enter the market with an arsenal of collected features that are looking for an end consumer, instead of designing their features with the end consumer in mind. Companies that follow this path can quickly find that their idea isn’t actually a business, and therefore they never become an actual brand. Alternatively, the companies that can bridge the inadequacies concerning what consumers want next and what the company offers can cultivate rapid progress.
Model 3: Cultivating a Perceived Change of Value
Companies and brands that look to provide a perceived change of value focus on redefining the emotional rewards of the market. These companies transform how consumers feel, sense, experience, and consider what they’re receiving from these brands in a whole new way. These consumer experiences are delivered by brands in manners that their competitors have not thought of, will not consider in simple terms, or simply cannot conceive. While this may often be thought of as up-scaling and is frequently done through design, perceived change of value can also undertake an alternative approach. It can “democratize” or “commoditize” a previously reclusive or exclusive market by allowing it to become more accessible. Or it can bring in a much-needed attitude to a market that produces a breath of fresh air in the minds of consumers. Brands that are successful with this value model can discover an emotionally disruptive vantage point by thoroughly understanding the psychographics of their consumer base. They can deliver enhanced levels of “usability value” in the minds of consumers that exceeds what the consumer provides in cash compensation. As companies and brands continue the persistent quest to be more “human”, and as commercial interactions become more personalized as experiences, this is the value model that more and more start-ups, small and medium companies will turn to for a distinctive starting or repositioning point.
Brand Value Model Mix and Strategy
It’s imperative to understand that these three value models are not mutually exclusive. The smartest start-ups, small and medium companies will look to find a brand value mix that combines at least two of these models of value generation into their strategy. The purpose of creating a brand value mix is to identify current and future value, and therefore be able to understand the value a company should be looking to deliver today and five years from now. Brand value mix will fundamentally define a company’s strategy and the positioning of its brand. If a company desires to be and remain brand relevant, it is vital for them to define brand value at the start of their endeavors.
Through an honest and transparent view of a company’s current position, an understanding of the brand value strategy can be defined. This brand value will allow the company to move forward with a clear purpose, and provide them the ability to plan for the future in a meaningful and consistent way. The value strategies can be combined to develop a brand value mix that is unique to the company and allows them to differentiate themselves in a crowded market.
