This document provides 17 points for companies to radically differentiate themselves from their competition. It emphasizes finding one unique quality or "Zag" that makes a company the only one to offer a specific product or service. Some key recommendations include hitting an underserved customer need, designing a brand experience that delights customers, and protecting the brand identity from inconsistencies that could undermine differentiation. Loyalty is also discussed as important to extending the brand's success through additional products or services.

1. how to DIFFERENTIATE yourCOMPANY

2. To cut through the clutter in consumers minds and develop a discernable difference from your competition When everyone zigs, you should ZAG Dif∙fer∙en∙ti∙ate

3. Great Read - ZAG Book by Marty Neumeier Less than 200 pages 17 points for RADICAL differentiation

4. What is your ZAG? PRETEST: What is the ONE thing that makes you different from your competition.

5. “A brand is a person’s gut feeling about a product, service or company.” – Marty Neumeier It’s what THEY say, not what you say Definition of a Brand

6. 1. Hit it where they ain’t – PURE differentiation 2. Look for the white space 3. Put a microscope on the Need State of consumers Example - $10 reading glasses 4. Find a parade (find a trend) THE END, its that simple. More on Zaging

7. No set path No Mathematical formula 17 points to keep you on task How to design your ZAG

8. Experience, Creditability and Passion “Follow your Bliss” Day-after-Day, Year-after-Year Write an obituary for your business and yourself (self-employed) 1. Who are you?

9. CORE purpose or the fundamental reason your company exists beyond making money Example-Google’s purpose is to organize the world’s information and make it universally accessible. Without a CLEAR sense of purpose companies tend to grab at short-term goals and lose their long-term identity Must be less than 12 word - K.I.S.S. 2. What do you do?

10. This could be an entire topic :) Vision should be concrete, purpose can be abstract Purpose Example: Evolving the medical and insurance industries so they co-exist and thrive while taking care of every American Vision Example: Create a workable plan by Easter break 2010 True vision can’t be imposed, it must grow from the inside out through shared purpose and passion 3. What is your VISION?

11. High-Performance Brands are powered by a trend or trends Abroad Coffee Shop: Imagine a coffee shop built in an old downtown storefront that was upfitted from reclaimed wood, refurbished tables, chairs, fixtures, etc., it offers coffees from “abroad”, it offers free wifi and encourages people to come use it, with employees who are conversational while servicing the customers… VS. Broad Street Coffee Shop: Imagine a second coffee shop that serves maxwell house, basic out of magazine furniture and fixtures, no internet service, with employees trained to “take orders” Both can work, but only one can become wildly successful What WAVE are you riding?

12. 12 Admirable Virtues: innovative, market-driven, customer-focused, ethical, responsive, collaborative, trusted, quality-minded, progressive, proactive, responsible, optimistic Choose 4…they may be admirable, but are they unique? Think of how you can be DIFFERENT, not admirable 5. Who shares the Brandscape?

13. Many categories have 3-4 brands that exist PROFITABLY (see 2008 for former competitors) Rule of thumb: #1 has twice market share of #2, #2 has twice market share of #3, etc. until profit is gone The only positions worth owning are #1 and #2… Example: Kitchen Roseli – different by location & hours Winners and Losers

14. It is better to start a NEW Category than to battle it out with the top dogs

15. Our Brand is the ONLY _______________ that ___________________. First Blank – name of your category (restaurant) Second Blank – describe your zag(serves pulled pork) RULE: If you can’t keep it brief and use the word ONLY – you don’t have a zag. Try again Or you can make a list of the competitors that match your ONLY and shift your strategy away from theirs… RADICAL differentiation 6. What makes you the ONLY

16. WHAT: The only motorcycle manufacturer HOW: that makes big, loud motorcycles WHO: for macho guys (and macho “wannabees”) WHERE: mostly in the United States WHY: who want to join a gang of cowboys WHEN: in an era of decreasing personal freedom This is the framework for your Zag. It is also your company’s decision filter for future decisions. “Onliness” Example - Harley Davidson

17. Humans love to ADD, start new, build Focused alignment (SUBTRACT) is the art of using extreme focus and self-discipline to link business strategy to customer experience Which one is more fun and exhilarating? RULE: “If adding an element to your brand brings you into competition with a stronger competitor, think twice.” You’ll get wasted energy and among customers confusion 7. What should we + or - ? Example: Ford under Alan Mulally

18. “The quickest route to a ZAG is to look at what competitors do, then do something totally different.”

19. Every brand is built by a community Employees Partners Suppliers Customers Vendors Competitors Think of it as an ecosystem, EVERYONE has a role to play even if they don’t realize it. 80/20 rule Why do they love you? 8. Who loves you?

20. Is it your fiercest competitor that watches your every move? maybe Is it an “old” way of thinking? could be Cell phones vs. Home phones Think outside of the box and POINT IT OUT* *the IT we are talking about is what makes you the ONLY – the only restaurant that serves pulled pork 9. Who’s the enemy?

21. What do people call your company? Is it different than what you named your company? Is it better or worse? Can you change the name? Does it have creative “legs”? Example #1: Personal Media Devices vsYubop Example #2: iPod A poor name is a drag on the brand building process, a good name accelerates it! 10. What do THEY call you?

22. Different than your competitors Less than 5 syllables Appropriate, but not generic Easy to spell, say and type Satisfying to pronounce Suitable for “brandplay” think iPod Legally Defensible don’t be the iWidget Sidebar: What’s in a name?

23. Trueline is formed Competitors can’t claim it (or won’t) Customers find valuable Customers find credible Remember, this is for you to facilitate the customer remembering who you are and why it matters to them. Example: MINI Trueline-the small car for people who want a fun driving experience Tagline – Let’s Motor Tagline RULE: If you use commas or “ands”, you need more focus 11. How do you explain yourself

24. Touchpoints – places where consumers connect with your brand Examples – TV, Radio, Linkedin, Networking, online, etc. Choose touchpoints where you can WIN, not compete Have you ever looked at your competition in one way and thought, “I’ve gotta compete with that!” Maybe you should have been packaging for your product, nicer in-store communications, pick a “place” and dominate vs. sprinkling your budget “everywhere” 12. How do you spread the word?

25. BEFORE you can align all your touchpoints, you have to decide what to sell and how to sell it. simple How does your competition engage? How can you use that information to ZAG? Could you give away items your competition sells at a profit? RADICAL?! Pool and Spa Blue Ocean mentality vs. Red Ocean mentality Tip: Best practices are typically common practices 13. How do people engage with you?

26. What do consumers experience at your touchpoints? How will they learn about you? Sales staff? In-store? Online? Word-of-mouth? How can you help them “enroll” in your brand? Craft the experience so it delights your customers EXECUTION is key 14. What do they Experience?

27. 50% of customers would pay a 20-25% premium for their favorite brand before switching to another 5% increase in loyalty can produce a 95% increase in profit Loyalty can’t be programmed Loyalty is mutually beneficial It starts with companies being loyal to customers Example – Marketing Mentor contract, earn the right to do business vs. locking customers into contracts 15. How do you earn their loyalty?

28. Leverage your brand loyalty Ask yourself: We have customers, what else can we sell them? Two ways: 1. House of brands (think P&G) Fight their own battles separately 2. Branded House (think Apple) Same customers, budget, brand look/feel PICK #1 or #2 16. How do you extend your success?

29. Contagion If one brand has a problem…(think Toyota Prius) What if it were Mini? Would it effect BMW? Confusion 17 kinds of Crest toothpaste…customers want choices among brands, not within them Contradiction Example: Disney could stand for “wholesome entertainment”, “American entertainment” or “cultural imperialism” Avoid by building a separate brand or build a brand that travels cultural differences easily Complexity “The biggest task in brand-building is being able to say no.” – Helmut Panke of BMW 17. How do you protect your portfolio?

30. Take that one thing you wrote down… Do you still think it is the same thing that makes you RADICALLY different? Post Test

31. Go to my website: www.onemarketingresource.com and look on the blog, it will be posted by tonight. Please fill out my follow up sheet and leave it for me. Thanks for coming! Want this presentation?