Books closed, time for some practice! Forget the wine we told you about; it’s time to head out into the field and take a look at brands that successfully apply the theory from our previous article.
Especially in highly competitive sectors, focusing on one specific target audience can help you gain market share. As a practical example, let’s look at the grooming products sector. Nivea, Dove, L’oreal, Garnier, Rituals… (to name just a few), flood this market with their enormous ranges of diverse products.
However, Unilever managed to turn the sector upside down when the giant launched ‘Dove Men + Care’ at the beginning of this decade. A range of grooming products specifically tailored to men, with appropriately adapted communication. The focus on a male target audience was unprecedented and very bold in this traditional sector. The communication primarily conveys the message that, due to the rugged life he often leads, a man also needs the right care. This twist in communication partially broke the taboo surrounding grooming products and men. The result? A “new market” and a great success for the Unilever brand.
In a world increasingly characterized by products from the Far East (China, Thailand, etc.), authenticity is becoming more important. For this very reason, many companies turn to storytelling to tell their brand’s story and emphasize its authenticity.
A classic example we all know is Rolex. The luxury watch brand always emphasizes its origin and the long journey the brand has taken in its communication. For instance, you can find a very extensive chapter on their website dedicated to the history of the brand and the craftsmanship with which the timepieces are still manufactured today. Through “Every Rolex tells a story,” the brand also attempts to convince you of its class. The story created around the brand justifies the higher price point. An excellent example of how a strong story makes it possible to differentiate yourself as a brand.
Focusing on a lower price is a strategy that unfortunately still seems the most obvious to many companies. Be careful, because becoming a price player in your market contains several pitfalls. Regardless, there are certainly success stories from this focus.
Ever heard of a certain Richard Branson? Correct, the British businessman is best known for the low-cost airline Ryanair. Although not everyone is a price buyer, the success of the low-cost carrier is undeniable. A classic example of how an explicit focus on price turned the market upside down and made flying even more accessible to the general public. Warning: make sure to map out your cost model thoroughly if you are considering taking this path. That way, you can sustain your price strategy in the long term.
And your product or service—could it use a fresh perspective? Feel free to drop by for a coffee and we’ll gladly take a look at your story! Milk or sugar?