We’ve been talking about whether or not you had a 360-degree view of your brand and we identified that a brand is like a three-legged stool.
To review, the three legs are:
1. The company’s vision of the brand
2. The consumers’ vision of the brand
3. Where your brand sits in the marketplace
In last week’s post we explored the second leg of the stool – the consumer’s vision of the brand.
This week, let’s wrap up this series with a conversation about how to evaluate where your brand sits in the marketplace.
Unless you do business on Mars, odds are very good that you have competitors. Let’s make sure we’re talking about the same things by defining who your competitors might be.
When asked to list their competitors, most people list the other companies that sell the same product or services. That’s certainly part of the equation. But what about those companies who sell alternatives to your offerings?
Let me give you a concrete example.
When I say who is Coke’s competitor, most people would answer Pepsi. But what about sports drinks, juices or bottled water?
A third category of competitors is a decision to go in a completely different direction. Say buying coffee instead or not buying a drink at all.
So, the first step in understanding this leg of the stool is defining who your competitors are. Next, you need to determine what plot of land they’ve already claimed. Because you don’t want to be there too.
Think of it this way. If you were a settler in a new land and were promised two acres of land for your family homestead, would you begin to build your new home on a plot of land where someone else has already built their family home?
Of course not. The same is true for your brand. If one of your competitors already owns it, you need to find a different plot of land. Remember, a brand is the shorthand that the universe uses to differentiate you from your competitors. So why spend any effort, time or money trying to convince them that you’re just like someone else?
Not sure how to create a new or fresh plot of land? Joe Calloway’s book Becoming a Category of One is an excellent resource. Be mindful, as you work through this question, that this third leg of the stool needs to balance with the other two – how you see your brand and how your consumer’s see your brand.
Branding is a small business’ most powerful weapon. Be sure that your branding stool is well-balanced so you can climb on top of it to build your business.
Check out the earlier entries in this series:
Do you have a 360 degree view of your brand?
Drew,
A fresh take on branding…Don’t just define your competitors. “What about those companies who sell alternatives to your offerings?”
Your comments are absolutely astonishing. To put your comments in adspeak, it reminds me of the commercial, “Mommy is having a french fry. Mommy is having a french fry!” (And the baby whacks her in the forehead.)In the realm of why didn’t I think of that?
Hi Drew,
Excellent series of posts. I enjoyed this article the most because it really tries to dwell into an area that most small business struggle to comprehend.
However I must say I can not really agree with your suggestion that one should not go for a “plot of land” that a competitor has already claimed.
Does that mean that we can not try and get a piece of that plot of land by crafting our brand and our services or offers to be different from the competitor who is already staking the claim. If that is so then perhaps we would not have had so many companies in each sector/field etc. Also consumers will have no choice if only monopoly prevails.
Perhaps I have got this wrong, if I have then sorry about that.
Thanks,
Jeff
Nice analogy (land plots) for creating your own brand.
Thanks for linking through to the other articles in the series too. I’m off to do some reading now.
Hi Leslie,
I’m glad you found the article/series of value. I certainly hope you’re not hurting yourself with that french fry!
Come back often — there’s a wealth of information here at SBB!
Drew
Hey Jeff,
I’m glad you’re enjoying the series.
Thank you for the question. Let me see if I can clarify. I’m not suggesting that if there are already fast food joints out there, you shouldn’t wade into those waters. You’re right, a monopoly is not good for anyone.
But…McDonalds pretty much owns the Happy Meals/prizes for kids category. So what I am saying is…find a different way to talk about yourself. If you go out there and say, we have kids toys too…you sound like a copycat, not an original.
The key difference I think is claimed versus owned. Many companies claim a plot of ground but then fail to deliver. Go ahead and lay claim to that. But if a company truly owns a position — you can’t own it too and look like you are anything but a follower.
Does that clarify things? Push back if you think I’m wrong. I love to discuss this stuff!
Drew
David,
Thanks — I tend to write in analogies. It makes it easier for me to understand and explain!
Drew