Forming a company's competitive advantages: a step-by-step plan. Formation of the company's competitive advantages: step-by-step plan The product is one of the main advantages

⏱ reading time: 15 minutes

The goal of a marketing strategy is to understand and cope with the competition. Some companies are always ahead of others. Industry affiliation does not matter - the gap in the profitability of companies within one industry is higher than the differences between industries.

The differences between companies are especially important during times of crisis, when the created competitive advantage is an excellent foundation for profitable growth.

Competitive advantages of the company

• Advantage Any success factor that increases a consumer's willingness to pay or reduces a company's costs.
• Competitive advantage- a success factor that is significant for the consumer, in which the company surpasses all competitors

Building a competitive advantage means achieving a greater gap between costs and customer willingness to pay for a product than your competitors.

Step 1. Determine success factors

The answer to the question “how to create a company’s competitive advantage” is not so important. If you are confident that you will achieve competitive advantage through 24/7 delivery, then you will find a solution to realize this competitive advantage. It is much more difficult to determine what exactly they will become.

To do this, first of all, we write down all the advantages, or success factors, that are important for buyers. For example, like this.

Step 2. Segment the target audience

A separate shuttle for business class passengers is an advantage. But achieving this competitive advantage is completely irrelevant to those flying in the economy segment. Determining competitive advantages always occurs for a specific segment of the target audience - with its specific needs and desires.

The decision to sell to “everyone” leads to questions about where to look for these “everyone” and what to offer them. It turns out that “everyone” must be searched “everywhere” and offered “everyone”. This strategy will kill the budget of any company.

Let's take the example of achieving competitive advantages for a company selling flowers. Among the target audience, we will highlight the segments of those who buy flowers impulsively, prepare a pre-planned gift or, say, decorate their homes.

Having determined for whom we are going to create a competitive advantage, we will evaluate whether it is worth it - we will give an assessment of the market capacity and the intensity of competition in each segment.

Read more about segmentation criteria in our article: “”

Step 3. Determine key success factors

The buyer is demanding. Many factors are important to him - from the consultant’s smile and website design to low prices. But just because a buyer wants something doesn’t mean he’s willing to pay for it.

The value of a competitive advantage is the buyer's willingness to pay for it. The more money they are willing to pay for the development of a competitive advantage, the higher its significance.

Our task is to form a very short list of key success factors from the long list of various consumer “wants” that can determine the company’s competitive advantages.

In our example, the key success factors are the same for all three target audience segments. In real life, each segment usually has 1-2 of its own factors.

Step 4. Assess the importance of key success factors for target audience segments

What is important to one segment of the target audience may be a weak competitive advantage for consumers from another segment.

If you have an idea to buy flowers to give them this evening, then for an impulsive decision the main thing is appearance (fullness of bud opening) and speed of purchase. This is more important than the ability to choose from a large assortment, the lifespan of the bouquet - it is necessary that the flowers be present and look good this evening.

The opposite situation is buying flowers to decorate your home. Delivery is not a problem, but the question of how long the flowers will last comes to the fore.

Therefore, the importance of key success factors is determined for each segment of the target audience separately.

*) we clarify - CFUs are taken as an example, close to life, but do not reflect the real case.

For our company, identifying the right competitive advantages that allow our clients to attract more consumers, get more money from them and interact with them longer is one of the main blocks of the developed marketing strategy. Therefore, we strive to achieve an ideal situation - when every cell of all tables in this article is expressed in money. You can create a working marketing strategy only by understanding the cost of CFU from the buyer’s point of view, market volume, costs, etc.

All this information can be obtained. But sometimes there is no time or resources for this. Then we recommend using a comparison on a 5 or 10 point scale. In this case, remember that any factual data is better than guesswork. Hypotheses must be put forward based on the company’s big data, monitoring customer reviews, monitoring the sales process of competitors, and not taken from the head “because it seems so to me.” Expert forecasts too often fail.

Step 5. Compare the achieved competitive advantages

At this point, we have figured out what is important to your consumers. This is good. It’s bad that competitors are also aware.

To understand the starting conditions, it is necessary to assess the current degree of development of the company's competitive advantages. Strictly speaking, you only have a competitive advantage when your offering outperforms all of your direct competitors on some key success factor.

The assessment of competitive advantages is made exclusively from the point of view of consumers. The opinion of the company's employees, and especially the management, does not say anything. The director may be proud of the website developed according to his idea, on which millions were spent, but this in no way indicates the convenience of the site for clients.

Step 6. Determine sources of competitive advantage

Any competitive advantage is the result of a company’s activities. Each action incurs costs and at the same time affects the buyer's willingness to purchase the product. Differences in the results of these actions form competitive advantages.

Therefore, we compile a list of all the company’s activities by desegregating its activities into separate processes. In projects, we begin the analysis with the activities that are necessary to produce the basic product or service, and only then add related activities.

Step 7. Linking key success factors and company activities

Competitive advantage is formed at the intersection of various activities. For example, an increase in the assortment in the flower trade requires an increase in working capital, the availability of storage space for products, a sufficient area of ​​sales points, additional qualifications of sellers and service personnel, etc.

We determine which business processes are associated with the development of each of the found competitive advantages and the size of their contribution.

Step 8. Assess the company’s costs for creating competitive advantages

At this step, we look at how much it costs to achieve a competitive advantage. Any company activity has its costs.

In our example, we assess the level of costs on a 10-point scale, but in real life, a company must more or less accurately know its costs. Pay attention to the calculation methodology - usually accountants tend to record most of the costs in production, thereby reducing indirect costs.

Having understood the size of costs, we determine their drivers. Why are the costs what they are? Maybe we pay a lot for shipping because the business size is small and we don't have enough freight? There are many cost drivers. They depend on the size of the firm, its geographical location, institutional factors, access to resources, etc.

Cost driver analysis helps estimate the costs competitors will have to create a similar competitive advantage. It is difficult to obtain data directly, but by understanding the drivers that influence the amount of costs, we can predict the volume of competitors' expenses.

Step 9. Looking for resources to create a competitive advantage

Maintaining the achieved competitive advantage at a constant level is only possible if sufficient resources are available. In addition, analysis of the resources that the company has helps to choose an area for quickly developing a competitive advantage.

Step 10. Choosing a direction for developing a competitive advantage

We look at the two resulting final pictures and think. There are only three possibilities for achieving competitive advantage:

• increase willingness to buy a product without significantly increasing costs
• dramatically reduce costs with virtually no impact on willingness to buy
• increase willingness to buy and reduce costs at the same time.

The third direction looks the most attractive. But finding such a solution is extremely difficult. Typically, companies simply waste valuable resources trying to create a competitive advantage across the board.

Basic rules for determining competitive advantage.

• We are looking for options that create the largest gap between the buyer’s desire to pay and our costs.
• We don’t try to select all the attractive options at once. Having decided to occupy one peak, we will no longer climb another. It is most profitable to choose a peak that is not crowded with competitors.
• We remember our competitors and what motivates each of them. If you decide to change some business process, how will your closest competitor react to this?

• Success factors. The more you find, the better. Typically, managers tend to focus on a few product features. This reduces the perception of the benefits that the consumer receives and brings your marketing strategy closer to that of your competitors. To find competitive advantages that are less competitive, think about the benefits a company creates for all its stakeholders: customers, employees, suppliers, dealers, and so on.
• Key success factors. The more significant the factor, the more restructuring of the company’s activities it requires. If you are not one of the industry leaders, it is better not to immediately try to compete on the main factors, or groups of factors (“best in quality”)
• Market. The question should not be “can we create a competitive advantage for this segment of the target audience”, but “can we create a competitive advantage for this segment of the target audience and remain profitable.” Having current costs in hand, we assume how much the company will pay to turn a key success factor into a full-fledged competitive advantage
• Current competitive position. It's difficult to build a competitive advantage in which you're hopelessly behind. Especially if it is a capital-intensive or time-consuming process.
• Costs. Competitive advantage can be achieved by focusing on costs that are most different from competitors, are large enough to influence the overall cost structure and are associated with discrete activities.

Fear often gets in the way of building a competitive advantage. The desire to become the best will certainly entail an increase in prices or, conversely, a decrease in the desire to buy our product. Reducing costs reduces the client’s desire to use our service (a ticket to a low-cost airline is cheap, but you can’t take luggage with you, there’s no food, airports are far away). Improving product characteristics leads to increased costs. This is absolutely normal. All that matters is the widening gap between the buyer's willingness to pay and the company's costs.

Step 11. We create competitive advantages by changing the company’s actions

As I wrote above, the creation of competitive advantages is the result of the company’s actions. To make the offer superior to all competitors, it is necessary to reconfigure some of the activities.

For example, achieving a “low cost” competitive advantage. There is no point in trying to compete with a discounter by simply lowering prices. A successful discounter has become so due to the fact that most of the company's activities are subordinated to creating this competitive advantage. If a Walmart employee wants to get a new pen, he returns the old one, which is covered in writing. There are no small details in creating a competitive advantage.

Again we look at the connection between the chosen competitive advantage and the company’s activities. Where is this competitive advantage created? And we invest specifically in the development of selected business processes.

Ask yourself the following questions

• Are our actions different from those of our competitors?
• Are we doing the same things but in a different way?
• How can we change our actions to gain competitive advantage?

As a result, determine the minimum and sufficient set of activities that the company must perform in order to form a competitive advantage. Usually they try to copy only obvious things, forgetting that much is hidden under water. It is the complex of activities that creates a competitive advantage that cannot be copied.

Actions aimed at developing a competitive advantage must be connected by a single logic. M. Porter's classic example is the set of actions of SouthWest Airlines that created its competitive advantage. As a result, the airline was the only low-cost airline on the market for 25 years. It is impossible to achieve a similar competitive advantage overnight.

In essence, this is a marketing strategy. This set of actions is almost impossible to copy and surpass.

1. Universal for everyone
2. Advantages in the field of trade

Universal for everyone

Research and Innovation

The IT branch is the most technologically equipped area of ​​business. Each player in this market strives to become a leader in innovative solutions and developments. In this industry, those who set the pace for the development of innovations and technologies are in the lead and receive super profits. Apple and Sony are striking examples of two companies that have achieved leadership in the IT market through the use of innovation as a sustainable competitive advantage.

Brand awareness

Corporate reputation

Patents

Proprietary technologies are assets that can provide a company with a competitive advantage over the long term. In world practice, methods of purchasing companies due to the ownership of patents and other protected technologies are widely used. General Electric is known for becoming one of the most powerful companies in the world through its ownership of patented designs.

Economies of scale

Barriers to entry

Exclusive

Elasticity

Speed ​​and time

Low prices

Advantages in the banking services market

In this section, we will offer top tips for developing competitive advantages for companies in the banking sector. The weakening of the economies of European countries in the modern world and the increasing level of instability in the global economy leads to the need to revise the basis of the competitive advantages of the monetary sector. In 2013 - 2015, it will be more profitable and important for the banking sector to concentrate efforts on developing subsequent competitive advantages:

• simplification of making purchases and lowering commissions using bank cards (including the creation of payment cancellation guarantees in case of negligent execution of purchase and sale agreements - following the example of the PayPal payment system)

Advantages in the hotel services market

• leadership in service level

Advantages in the tourism services market

• focusing on the quality of service to certain customer groups
• ease of use of the service and minimization of client time

Advantages in trading

In the article we will talk about the likely areas of competitive advantages using examples of world-class companies, we will look at the features of creating business advantages in different industries: in the banking sector, in the tourism and hotel markets, we will separately talk about the specifics of creating competitive advantages for wholesale and retail stores, taking into account modern global trends.

1. Universal for everyone
2. Advantages in the banking services market
3. Advantages in the hotel services market
4. Advantages in the tourism services market
5. Advantages in the field of trade

Universal for everyone

Let's start our list of examples of competitive advantages with 12 best methods for creating them, which were prepared by analyzing leading industries, global brands and large markets. The point of all the examples outlined below is that there is no single correct formula for creating competitive advantage. You can win in any market. It is important to find that feature of the business that can ensure the highest level of profit for the company.

Research and Innovation

The IT branch is the most technologically equipped area of ​​business. Each player in this market strives to become a leader in innovative solutions and developments. In this industry, those who set the pace for the development of innovations and technologies are in the lead and receive super profits. Apple and Sony are striking examples of two companies that have achieved leadership in the IT market through the use of innovation as a sustainable competitive advantage.

Brand awareness

Global recognition, fame and respect for the brand has allowed companies such as Coca-Cola and Virgin to maintain their market share and dominate the market for many years. Higher brand awareness and a positive brand identity have also reduced the costs for Virgin to capture new parts of the market.

Corporate reputation

The highest level of corporate reputation can also serve as a source of competitive advantage in the market. Price Waterhouse (consulting and auditing) and Berkshire Hathaway (investments, insurance) have used this competitive advantage to give their companies world-class status.

Patents

Proprietary technologies are assets that can provide a company with a competitive advantage in the long term. In world practice, methods of purchasing companies due to the ownership of patents and other protected technologies are widely used. General Electric is known for becoming one of the most powerful companies in the world through its ownership of patented designs.

Economies of scale

Dangote Group has become one of the leading manufacturing conglomerates in Africa due to its ability to create products in greater volume and maintain uniform prices throughout its trading area.

Quick access to reverse capital

In world practice, OJSCs win over private companies due to their ability to attract the highest level of investment in a very short period of time. For example, Oracle attracted investment to purchase more than 50 companies in just 5 years.

Barriers to entry

Country restrictions on rivals, and a country's protectionist policies can serve as a competitive advantage for local companies. Example, Telmex (telecommunications company, Mexico) or Chevron (energy, USA).

The highest quality product and level of service

The highest level of service is always a strong competitive advantage of a product. IKEA has gained a strong position in the market by being able to provide superior product performance at low cost and the highest level of after-sales service.

Exclusive

Coscharis Group has seized leadership in the Nigerian market by possessing exclusive rights to distribute BMW vehicles throughout West Africa.

Elasticity

The ability to quickly adapt to market changes has provided Microsoft with a leading position in the global software market.

Speed ​​and time

Concentrating all efforts on achieving the greatest speed and reducing service completion times has given companies such as FedEx and Domino Pizza a growing and sustainable position in the industry.

Low prices

The low-price strategy and the ability to maintain, strengthen and develop it have provided the Wall-Mart retail chain with global leadership and the highest level of company capitalization.

Improved database processing

GTBank, AT&T, Google, Facebook have achieved global leadership thanks to advanced technologies and achievements in the field of processing and managing large volumes of information.

Advantages in the banking services market

In this section, we will offer top tips for developing competitive advantages for companies in the banking sector. The weakening of the economies of European countries in the modern world and the increasing level of instability in the global economy leads to the need to revise the basis of the competitive advantages of the monetary sector. In 2013 - 2015, it will be more profitable and important for the banking sector to concentrate efforts on developing subsequent competitive advantages:

• increase in return on capital
• achieving leading positions in profitability in one or more areas of banking activity (in other words, transition to specialization and provision of the best interest rates for narrow market niches)
• improvement of banking services, speed and convenience of transactions by updating and simplifying business processes
• achieving leadership in safety, reliability and asset protection
• development of mobile Internet banking and increase in the technological level of service provision
• simplification of making purchases and lowering commissions using bank cards (including the creation of payment cancellation guarantees in case of negligent execution of sales contracts - following the example of the PayPal payment system)

Advantages in the hotel services market

In order to choose the right competitive advantage, be sure to conduct a comparative analysis of the criteria for the provision of services by your hotel company and its competitors. More successful examples of competitive advantages for the hotel business:

• leadership in service level
• focusing on the quality of service to certain customer groups
• low cost advantage (subject to the existence of the ability to obtain higher profits compared to competitors)
• ease of use of the service and minimization of client time
• provision of free meals or other additional services
• the most profitable loyalty programs that stimulate repeat purchases and more frequent implementation of hotel services
• comfortable location of the hotel for certain groups of clients
• availability of all necessary additional services (conference room, wi-fi, internet, swimming pool, beauty salon, restaurant, etc.)
• a unique style of decoration and hotel service, allowing the consumer to immerse themselves in a completely new environment

Advantages in the tourism services market

In order to choose the right competitive advantage, be sure to conduct a comparative analysis of the criteria for the provision of services by your company and its competitors. More successful examples of competitive advantages for tourism businesses:

• leadership in the level of service provision
• focusing on the quality of service to certain customer groups
• the ability to set low prices (subject to the ability to obtain higher profits compared to competitors)
• ease of use of the service and minimization of client time
• the most profitable loyalty programs that stimulate repeat purchases
• leadership in one of the types of tourism (see example of tourism market segmentation)
• availability of all necessary related services
• the most noteworthy travel programs
• availability of a mobile application and the highest technology of the service
• the most profitable flaming tours

Advantages in trading

More successful examples of competitive advantages for the trade industry (using the example of a retail store): breadth of assortment, exclusivity of sales in a certain area, the ability to set low prices, leadership in warranty period and after-sales service, availability of free prizes for the buyer, leadership in the attractiveness of promotions -offers, leadership in quality, freshness, modernity of products sold; personnel competence; ease of selection, convenience of selection and time saving for the buyer; computerization of business and the presence of web trading; the most profitable loyalty programs; advice from professionals on choosing products for the buyer; Convenient location of the retail outlet.

Today it is no longer enough to create a brand, a strategy for its promotion and development, and work on positioning, hoping for customer loyalty and love for the company. A discerning buyer wants to trust the company. Know that he can give his money and get what he expects without risks. Therefore, it is important for any company to present its competitive advantages to its potential client, showing that it can satisfy his needs. In this article we will talk about what is competitive advantage, why they are needed, what they are and how to find, highlight and group them.

Competitive advantages and benefits: what are they and what are their differences?

The concept of competitive advantage carries the superiority of a company, product, service or brand over other existing market participants - competing companies working with you in the same niche. For a business, competitive advantage helps solve a number of important problems:

• Strengthens the company's position in the market;
• Creates the prospect of stable growth and uninterrupted operations;
• Creates difficulties for competitors entering the market.

But the most important value of competitive advantages is their ability to generate profit for the company. Any company works for profit, for its development and expansion of its customer base. And competitive advantages, like nothing else, help her in this. They become the main motivator for the consumer, pushing him to take the actions that we need.

Advantages and benefits. Same?

Both in marketing and in Internet marketing, you have probably repeatedly encountered the concept of advantages and benefits. When developing a high-quality Landing page, a block with a list of advantages and/or benefits is an obligatory part of the selling strategy and structure. But many business owners perceive the two concepts as equivalent, which is a big mistake.

In terms of their value and impact on the client, the advantages and benefits are identical. They bring the same result. But they differ in meaning, so it is important to understand what, and also know how and when to use them.

Advantages are formed based on the characteristics of a product, service or company as a whole. With their help, the client understands why and how is your company better? and why it's better for him.

Benefits are a derivative of the advantage provided by the characteristic. They help the client solve their problem, make life easier, save time, money, or whatever is relevant to the buyer at the moment.

Despite the fact that the organization's competitive advantages and benefits are different in their specificity, they are united by common requirements. They have to:

• Stand out from competitors;
• Satisfy customer needs;
• To be stable and unchanged in a changing market;
• Be unique and make it clear that no other company will provide such advantages and benefits;
• Work for the profit of the enterprise.

Competitive advantages must be based on the desires of the target buyer, which must be studied. Once the benefits are generated, you can highlight the benefits based on them and demonstrate them to your customer. Let's give an example based on a laptop repair service.

Client's wishes (I WANT):

• I want my laptop to work without crashes and glitches;
• I want my laptop to not slow down or get hot;
• I want to be comfortable working on my laptop.

Client criteria (AS I WANT):

• I want it not to be more expensive than the amount I expect;
• I want my laptop to be repaired in 1-2 days;
• I want original spare parts installed;
• I want to be given a guarantee for repairs of at least 6 months;
• I don't want to go to the service center myself.

Based on the analysis of the criteria set by the potential client , we create advantages:

• Laptop repair from 100 UAH;
• Repair time - 1-2 days;
• Installation of original spare parts for Asus, Acer, Samsung. We do not use Chinese analogues or fakes;
• Repair warranty - 12 months;
• Courier delivery of the laptop to the service center and to your hands after its repair.

The benefits have been identified. Let's move on to the benefits:

• Time saving - repairs take only 2 days;
• Saving money - laptop repair will cost 20% less than in other service centers;
• Save effort - the courier will leave the laptop there and back.

Ideally, both advantages and benefits should be stated. Any information affects the conversion of the site, so be sure to work through it and demonstrate it to your buyer.

If you are planning to open a company selling consumer goods that are sold by fifty other companies in your city, and it seems to you that it is impossible to highlight competitive advantages, then you are deeply mistaken. Any company can develop strong benefits that will set it apart from the rest. The main thing is to know how to do it. And we will be happy to tell you this further.

What are the types of competitive advantages?

Competitive advantages can be natural or artificial. Natural benefits state a fact and convey truthful information. Artificial ones belong to the category of manipulation, but can be of great benefit if presented correctly.

What are the natural benefits?

Very often, companies do not demonstrate natural advantages, thinking that they are obvious. And this is a big mistake, since even the most common values ​​among competitors can be presented very powerfully. Below we list what is included in this group.

1. Price/income

Perhaps the most powerful advantage. Especially if competitors don’t have it. But here it is important to format the information correctly. Do not write template phrases: “Low price”, “Discounts for regular customers”, “Wholesale prices”, “Prices from the manufacturer”, etc. Write specifics: “25% discount on refrigerators,” “prices are 30% lower than market prices.” Always speak in numbers. This is very important, especially for B2B companies. Information about earnings also grabs a potential buyer’s attention very well. This is very often used by information businessmen, presenting as an advantage of the service the opportunity for the user to earn money.

2. Timing/energy savings

Your client always wants to save his time. Give him this opportunity by specifying specific deadlines. If your logistics department is well developed and you guarantee fast delivery, write down how many days it will take to deliver the goods from one point to another. Here it is also important to exclude bureaucracy and cliched phrases, such as “Fast delivery.” Write “Delivery in 1 day from Kyiv to Dnepr” or “Delivery in 1 hour to anywhere in the city.” A valuable advantage can be information about benefits that will help the consumer save their effort, energy, time or increase their own productivity (for example, when using the services of a cleaner, the client pays for cleaning and saves his energy by getting cleanliness in his home). Such customer care inspires trust and motivates the consumer to action.

3. Your experience

It is very important here not to cross the fine line by approaching the hackneyed phrase “We are experts in the field...”. Such expressions no longer work and are of no interest to anyone. If you decide to declare your experience, then speak in fact - what you have done in 10 years of your activity: built 150 houses, opened 15 branches throughout the country, introduced a new production line of goods, etc. Your client is looking for facts about your successes, not information about your years of work.

4. Terms of cooperation

Any specific features of cooperation can be an advantage here. Don't be afraid to reveal those that are also listed by your competitors. The fact that you accept cash and non-cash payments can significantly increase the chances of a sale by providing convenience to the buyer. Indicate all the factors of cooperation: the presence of a showroom, the possibility of producing a product model to order, the geographical location of the office near a municipal transport or metro stop. Even the possibility of self-pickup and your own warehouse or any information that gives the client the benefit of saving his time or effort, as a competitive advantage, can play into your hands by providing the buyer with maximum comfort.

5. Achievements

Diplomas, diplomas, certificates, a list of partner companies and large client companies with their logos work as social proof that instills trust in the company, which is the main goal of competitive advantages. With the help of documents that you demonstrate to your potential clients, you will emphasize your experience, status, and authority. And this is very important for buyers, as it says that you are working for the future and development, which means that your company will not close tomorrow.

6. Specialization

If your company operates in a narrow specialization, then you definitely need to tell your client about this. Imagine that you are using an Ariston brand washing machine. And one day it broke for you. Which company will you contact - one that only repairs Ariston washing machines or one that repairs washing machines of all brands? Surely, firstly, because you will subconsciously conclude that its employees are more experienced in matters of your washing machine.

7. Business Features

Any fact specific to your business can become a competitive advantage. Using a certain technology or equipment, an assortment of products that exceeds competitors, purchasing raw materials in Europe - all this will help you become the king. Don't miss this information when creating your benefits.

What advantages can be called artificial?

Such advantages can help out a company that operates in a very popular niche. It is usually very difficult for such firms to find competitive differences, since all organizations most often work according to the same principle. Or the formation of artificial advantages will help a young company that has just entered the market and cannot “compete” with established participants to stand out. Let's list what can serve as such advantages:

1. Added value

Let's say you sell women's dresses. In this niche, it is very difficult to compete with similar companies that may even purchase goods from the same supplier as you. There is a way out - to create added value: to offer your client something that competitors do not offer. For example, when purchasing a dress, an accessory is given as a gift. In other words, even the most ordinary promotion will help you create an advantage over your competitors and attract the attention of buyers.

2. Responsibility for the product/service

It works very well, provided that you are willing to be truly responsible for what you are selling. For example, you claim that the doors you are selling will last 30 years, because you know that they are made of oak without the use of cheap substitutes. Clients will be drawn to you if your statements are compelling.

3. Warranty

Any guarantee will become a competitive advantage if its conditions are met. A guarantee can be given for both the service and the product. For example, you can guarantee the possibility of returning and exchanging goods within 30 days, despite the fact that by law this can only be done within 14 days. Or guarantee a refund if the service does not bring results. Don't worry about customers returning items or asking for refunds frequently. Generally, if the user is not satisfied with the purchase, he forgets about guarantees. But this is not a reason to offer low-quality goods/services in the hope that compensation for them will not be required.

4. Showcasing your offer

If your product or service has no obvious benefits (which is quite common), then you can simply show your potential client what is offered to them in the form of a demo. If this is a product, then you can make a video about its appearance to show the person what it really looks like. If a service is the process of its implementation. Remember, a person perceives 85% of information visually. Therefore, demonstrating your offer will be a significant advantage for your company.

5. Feedback from your clients

It is important that the reviews are real. In this case, they will become social proof, a reason for trust in your company and its activities. They will also create a competitive advantage over other companies. Video reviews where real customers express their opinions about a company, product or service work better. But if this option is difficult to implement, you can use a text review by inserting a phone number, a link to a social network or the client’s email address with prior agreement on the publication of his personal data.

6. USP

We will not go into detail about the unique selling proposition and its value, since we have already done that. Let’s just say that with the correct analysis of the business and target audience, as well as the competent construction of the USP, it can become the most powerful advantage of your organization and increase its sales.

Creating competitive advantages: how to turn something “simple” into something “golden”

Before you begin developing a competitive advantage, you need to conduct two critical analyzes - the target audience and competitors.

Target audience analysis

You need to understand who your client is, how old he is, what his social status is. And, most importantly, what problems he wants to solve with the help of your product, service or company as a whole. Problems can be completely different: from the urgent need to buy a product here and now due to lack of time to meeting the requirements for its safety. For example, a person wants to make sure that all tools in your beauty salon are disinfected.

If your target audience consists of several different groups, you need to select one that your website and benefits development will be focused on. Ideally, the developed competitive advantages should satisfy the needs, overcome fears and solve problems of the entire target audience, even if it consists of several groups. But sometimes this is impossible to do, so it is advisable to work out competitive advantages for the most important and promising group.

Competitor analysis

Benefits wouldn't be called competitive if they weren't superior to your competitors. When analyzing market participants in your niche, it is important to highlight their strengths and weaknesses. Understand their advantages - what they are better than you at. And, conversely, identify their weaknesses, which in the future you can make your superiority over them.

Stages of developing competitive advantages

Once you are already familiar with your target audience and competitors, proceed to the main thing - step by step, work on highlighting the advantages.

Stage 1. Determine all competitive advantages of the company / product / service

Highlight all the benefits that you know. This is very important in order to identify those that will become competitive in the future. If you are determining the benefits of a product or service, you can survey your customers to find out which benefits are most important to them.

Stage 2. Ranking of benefits

Once you have compiled a list of benefits, you need to sift through those that are least important to your consumer and those that are the most important. This is necessary in order to highlight the most valuable factors that will help you develop your business and be able to “overcome” your strong competitors.

Stage 3. Comparison with competing companies

The list of selected benefits must be compared with the benefits of competitors. You need to know which companies have them on the market and which ones they don’t. And also know in what ways they are better and worse.

Stage 4. Highlighting unique advantages

You need to highlight absolute advantages - those that your competitors cannot copy. These are the benefits that are unique to your company, service or product. For example, only your company uses German equipment that allows you to print in a unique format. Or only your company presents the product in a unique limited edition packaging.

Stage 5: Developing False Advantages

It is not always possible to develop natural competitive advantages, especially in very popular and saturated niches. The only way out is to create false advantages.

False advantages are advantages that work on emotions and convince the consumer that your company/product/service is unique. For example, an advertisement for Jacobs coffee claims that it has “aromoxomite magic.” The concept of “aromoxamite” does not exist in nature, but this unique selling proposition of the brand has become its most important advantage.

Stage 6. Development and control

The formation of competitive advantages must end with the development of a plan. You need to think through a strategy on how to develop based on the identified advantages and how to maintain them in the future.

The most common mistakes when developing competitive advantages

A huge number of companies make critical mistakes when creating their advantages, after which, while working, they wonder why they cannot become leaders due to the great competitive pressure. Such errors are so common that they occur all the time. Most often, this is the use of stamps and clericalism. Here are the TOP 6 most common competitive advantages that have long ceased to be them.

We can do what you don't need

Very often, when creating their competitive advantages, companies completely forget about their customers. They talk about what they can offer, forgetting about what their target buyer really needs. As a result, such advantages do not work. They simply do not arouse interest, since a person understands that they will bring him absolutely no benefit.

Advice: When creating advantages, focus on the desires of your buyer, putting your capabilities on the back burner.

We help you increase your profits by 40% with our business plan.

15 years of experience

Almost every company considers it their duty to indicate their work experience. But this information no longer affects the potential client. He doesn't care if you've been in the market for 5, 15, or 30 years without ever going out of business. What matters to him is what you did during this time.

Tip: If you want to indicate your company's experience, be sure to indicate what you have achieved during this time.

Over the 10 years of work of the Gradostroy company, we have built 2 nine-story new buildings, in which 70 families already live.

High level of service/quality

To be honest, your client doesn’t care at all that your company employs certified specialists. The presence of certificates does not affect the quality of service at all. Therefore, using template phrases: “We guarantee a high level of service” or “We provide high quality goods” is just a waste of time.

Tip: Always be specific and qualify your statements. Tell the consumer how he will be provided with a high level of service.

The service station will perform a free diagnosis of your car's automatic transmission and provide a 2-year warranty upon completion of the service.

Individual approach

A boring, hackneyed and annoying phrase that already hurts the eyes and ears. By using this phrase to your advantage, you can be sure that your potential clients won't believe you. At a minimum, because it is used by a dozen more of your competitors and thousands of other companies they have met.

Advice: Never use this unfortunate phrase under any circumstances. If you want to show your buyer that you work on special terms, be clear about it.

You can buy this product to order; we will develop a custom-made layout taking into account your dimensions; We will deliver the goods by courier at a time and place convenient for you.

Affordable prices

Top of all the hyped benefits that companies like to use is the claim of affordable/loyal pricing. Your client will not even perceive this phrase, let alone believe it.

Advice: Give specifics, speak in the language of numbers.

10% cheaper than market prices; 5% discount for each buyer; save 30% when purchasing this set.

A wide range of

And for dessert, a phrase that is sure to loom before your eyes on the website of an online store or in the advertising of any commercial company. This advantage has become so boring and banal that potential clients don’t even realize it.

Tip: If you want to focus on the assortment, talk specifically about the assortment of which product you are talking about.

1000+ models of women's boots made of leather, suede and nubuck.

Your company benefits don't have to be traditional and hackneyed. Try to highlight unique features that can not only attract the reader’s attention, but also motivate them to further action. After all, this is exactly what you expect from your potential client.

Recommendations on how to write competitive advantages and benefits

The best friend of competitive advantage is specificity. Each benefit must be clearly disclosed so that the potential buyer does not invent unnecessary and completely unnecessary things. We will provide recommendations on how to and how not to present the company's advantages and benefits using examples.

Only in fact

Free your client from vague phrases that do not provide value. Always speak accurately and factually.

• We are the best in our niche;
• We sell the highest quality products;
• We cooperate with large companies;
• A wide range - only with us.

• We do not use wet mixtures to reduce the construction time of a house;
• All products have been tested by the sanitary station and comply with GOST standards;
• When purchasing a frying pan, we offer a choice of 10 lid models;
• We cooperate with the network of gas stations “WOG”, “Gefest” and “Parallel”.

Without anonymity

Anonymity is confusing, and understatement only raises doubts. All statements must always be substantiated. Experienced users can easily see through your farce, so provide facts.

• We use the best parts for your car.

• We use new BMW spare parts from the manufacturer.

Only with evidence

Everything is clear here. If the client does not clearly highlight his benefits, then your statements are empty.

• We offer favorable terms of cooperation.

• Save 35% when purchasing cinder blocks in the amount of 20,000 UAH.

Possibility of verification

Your customer must trust you. And trust will not appear out of nowhere. Therefore, give him the opportunity to verify your statements.

• We build modern and comfortable facilities for living.

• You can visit and inspect the facilities built by the company at a time convenient for you.

Focus on target audience

Competitive advantage is not always aimed at all target audience groups. Therefore, it will only be partially beneficial. It is very important to understand who the competitive advantage is intended for, otherwise it will not bring effectiveness.

• The headphones transmit clear sound and do not get tangled in your pocket.

• The sensitivity of Earpods is 113 dB, allowing for accurate sound reproduction for sound engineers. Frequency range - 8 - 27000 Hz, which will allow you to enjoy crisp, deep bass and crystal clear high frequencies without distortion;
• The fabric braid prevents the headphones from getting tangled in your pocket, and you won’t waste time untangling them.

It's important to demonstrate true benefits. Otherwise, fictitious facts will only cause a negative impression of the company or product in the buyer, and he will go to your competitors.

We learn to develop a company's competitive advantages based on its shortcomings

Not all companies, especially young ones that are just entering the market, can compete with their competitors. To stay afloat, they have to inflate prices and extend delivery times due to the logistics department not yet being fully formed. All this can negatively affect the business, driving away customers. After all, no one wants to pay more or wait longer for their order when competitors have everything much cheaper and faster.

But there are special tricks that help turn disadvantages into advantages. These are facts that become a counterbalance to your weak points. Let's give specific examples.

As you can see, even those shortcomings that can lead a company to failure can become powerful competitive advantages that even established companies in the market cannot provide.

Examples of competitive advantages in different areas of the company’s business

In theory, developing competitive advantages for companies in the retail sector is much easier than for those involved in more specialized businesses. Therefore, we will provide specific examples for some niches that can become inspiration for you and the basis for your ideas.

Benefits for tourism business

1. Tours to remote corners of the planet;
2. Discounts on last minute travel packages up to 80%;
3. Free guide;
4. Free transfer by luxury car;
5. Gifts from the tour operator when ordering certain tours.

Benefits for a law firm

1. Specialization;
2. Availability of lawyers, notaries and other highly specialized specialists;
3. Geographical location of the office;
4. Free online consultation;
5. The company has 15 years of experience and 98% of successfully completed cases in favor of the plaintiff.

Benefits for the transport company

1. Own fleet of vehicles with different tonnage;
2. Free delivery and cargo tracking for orders over a certain amount;
3. Built-in navigation in the car and the ability to track its location;
4. Responsibility for the condition of the cargo upon arrival;
5. Official cooperation agreement.

Benefits for a cleaning company

1. Cooperation by agreement. Full responsibility for the result;
2. Cleaning is performed using professional equipment using sulfate-free detergents;
3. Financial responsibility for the condition of expensive interior items;
4. Financial responsibility for the safety of material assets;
5. Working with complex contaminants.

Brand value development

Brand value is not only the positive characteristics and quality of the product. These are the emotions and associations that a name evokes in a potential buyer, allowing him to be confident in himself and in the company. When a brand becomes famous and wins love, it becomes the strongest motivator for a person to take action. Logically, if we know that a particular brand of toothpaste will help reduce tooth sensitivity, then we will choose it, and not any other, whose advertising announces a similar feature of the product.

How to develop brand value?

There are many ways to create brand value and further develop it. But, first of all, it is necessary to analyze the target audience, its needs and desires. You need to understand what is most important and valuable to them, so that you can focus on this when forming values. Once the target audience has been analyzed, you can use one of the following methods for forming and developing values.

Value+benefit

It is very effective to present to the buyer not only the value, but also the clear benefit that the brand will provide him. For example, Head&Shoulders shampoo for women not only creates hair volume, but also eliminates dandruff. This means that girls using shampoo from this brand will get clean hair, voluminous hairstyle and self-confidence due to the absence of dandruff. The important thing to note here is that the benefits are real and the brand actually lives up to its claims.

Establishing Expectations

Brand values ​​can be developed based on the formation of some expectations. At the same time, a person subconsciously creates for himself a certain picture, image and feelings that he expects to receive using the brand. Even if the actual result is not as powerful as expected, the consumer will experience it to the maximum, since he has already convinced himself of it. For example, the slogan of the energy drink Red Bull: “Red Bull gives you wings.” This does not mean that a person will be able to fly. But he makes it clear that the charge of energy that he will receive after drinking the drink will allow him to feel a significant surge of strength.

Help effect

This method involves creating conditions under which the consumer participates in solving any problems. For example, the McDonald's company periodically organizes promotions to help orphans. When ordering fast food, the client is given a sticker in the shape of a palm, where he indicates his name. Thus, he is made to understand that with his purchase he gave part of the money to help those in need this children.

Creation of Alter Ego

Some brands demonstrate their value in their ability to create an alter ego in the customer. A person gets the feeling that by using this particular brand, he is able to do something that he would not have dared to do before. Such brands very often work to provoke. This method is often used by fashion brands. Or for perfumes. For example, Ax deodorant for men is positioned as a way to reveal your sexuality and attract the attention of women.

Brand equity works very well for the future of the company as a whole. With the correct development of value, the company will receive stable growth and a constant increase in consumers thanks to the effective positioning of its brand.

Developing benefits and creating product value

Competing on product benefits is not always possible, especially if the product is in a very common niche. However, if your company is a manufacturer or you are the first to bring a product to the market, then you have every chance of becoming a leader.

But do not forget that your competitors are not asleep, and after some time they will present consumers with a similar product. Therefore, it is very important to develop absolute advantages that competitors cannot take from you. And, first of all, it is necessary to analyze the target audience, identifying their desires and needs. Based on the resulting portrait of the target consumer, formulate the advantages of the product. It could be:

• Low price compared to competitors;
• A unique product due to one, several or multiple properties;
• Unique composition or use of very rare ingredients;
• A special type, shape, volume or packaging of goods;
• The product is more effective compared to analogues;
• You, as a manufacturer, create an innovative product;
• The product is sold under special conditions.

When you become an innovator by introducing a completely new product concept to the market, you can create value. With its help, the recognition of your product and, consequently, its sales will increase. For example, Apple, having released the iPhone, advertised an absolute innovation in the field of smartphones - a unique operating system, unique processors. This became the main value of the product at the stage of its introduction to the market.

Each developed benefit of a product must provide benefits to the consumer. That is why it is important to know what exactly your target audience wants to get when purchasing a product.

Advantages of a product/service as an emotional component

The sale of a product or service carries with it the most important goal in terms of its consumption or use - to satisfy the buyer's main need. A person purchasing something from your store wants positive changes to occur in his life with their help. He wants to get something, become someone, or avoid something that might bring him discomfort.

Therefore, first of all, the key advantage of a product is its ability to satisfy the desires and emotions of the buyer. Agree, you visit the hairdresser once a month not to get a haircut, but to look more attractive and more confident after the hairdresser’s service.

Marketers and specialists in the promotion of goods and services identify 7 areas, one of which is a powerful motivator for the purchase of a particular product/service, depending on its specifics. Let's look at each and give specific examples.

Money

The client/buyer wants to make a profit or not lose it.

We save your money when promoting using an SEO audit for website development

By ordering a service, the client will certainly avoid all sorts of mistakes in website development that will negatively affect promotion. Result: saving money on updating the site and eliminating errors.

Energy/time

When purchasing a product or ordering a service, a person’s goal may be an urgent need to save time or effort: to make work easier or faster, or to increase personal productivity.

Lose weight without leaving your favorite couch

Preparations based on natural ingredients will help you lose weight and find the figure of your dreams without wasting your energy and time on going to the gym and grueling workouts.

Health/Beauty

An important motivation for purchasing a product or ordering a service may be the desire to improve your health or the health of a loved one, get rid of illness/pain, or maintain your health at a certain level.

This remedy is your self-confidence

With this line of cosmetics for the care of problem skin, you will get rid of skin imperfections and eliminate oily shine. As a result, you will get healthy skin and self-confidence and attractiveness.

Status/Affiliation

When purchasing goods and services, a person may have the goal of emphasizing with their help his individuality, taste, or attributing him to any group or, conversely, highlighting him.

You are unique in this dress

By purchasing a one-of-a-kind couture dress, you focus on your personality and individuality. Make a statement by letting others know that you are an independent woman.

Safety comes first

With our “Cuckoo” alarm you will increase the safety of your private property, life and health.

Recognition/compensation

The motivation for purchasing a product or service may be the desire to receive confirmation of its value or to avoid criticism.

Not one price is the same or how to develop a competitive advantage of a product without affecting the issue of its cost

Many entrepreneurs are confident that the only and most powerful competitive advantage of their product can be price. If the price of the product is lower than that of competitors, then your company will instantly receive an increase in profits. And this is quite possible. But the company cannot always reduce the price due to the expected damage. And clients are not always only interested in price.

Let's consider what characteristics of the product can be used to form its advantages and benefits for the buyer.

Features of the product itself

The unique characteristics of the product will create its competitive advantage. They can become the main motivator for purchase, even if the product is more expensive than your competitors. The advantages may include:

• Functionality;
• Corporate identity, symbols, logo;
• Appearance;
• Range;
• No need for maintenance;
• Superiority in quality.

Place of sale of goods

Significant advantages for the product will be:

• Location of the point of sale of goods;
• Product availability;
• Display of goods;
• Ease of access to the product.

Staff and people

It may be important for the consumer who represents the product, and when demonstrating the advantages in this category, they become a powerful motivator for purchase. These benefits may include:

• Company employees who provide free advice on product characteristics;
• Store personnel who are ready to recommend or consult about a product;
• Manufacturer, whose name characterizes the quality of the product;
• Public figures advertising a product.

Is it always necessary to demonstrate competitive advantages and benefits?

In the framework of fierce market competition, demonstrating to consumers the advantages of a company, product or service and the benefits that they will receive as a result, becomes almost the only way to promote your business and work for the future. This is a fairly simple option for promoting and positioning your name, which does not require financial investments, but at the same time is an effective tool for competing. Therefore, do not ignore our recommendations, work on your competitive advantages in order to soon take a leadership position in your niche.

Talk about the number of completed projects, the volume of products produced, publish successful cases. It is very important not to slip into self-praise, but to show how much real benefit your products or services brought.

Are your services useful? Tell us about it!

Post reviews from real customers with links to their social media profiles/company websites so that potential clients can get confirmation. 90% of people will not check the authenticity of these reviews, but such openness on your part will earn their trust.

High level of quality/service

And the standard continuation: “Our company employs highly qualified specialists who have undergone special training.”

At all The qualifications of specialists do not indicate the level of service, unless your employees took courses on “How to lick a client.”

Take the example of hotels for which international service standards have been developed. A person entering a three-star hotel already has a rough idea of ​​what awaits him: a room with an area of ​​at least 12 square meters. m, free bottled water, bathroom with towels, soap and toilet paper.

What can a client expect in your company?

Write to him how quickly the repair will be carried out or the goods will be delivered. Explain how the personal manager will work to solve his problem - step by step, from receiving the application to the result. Convince him that even after completing the order you are always ready to help.

Imagine calling a company about a large contract, and the sales representative replies, “We’re having lunch, call us later.” And hangs up. Will you call him back or find another supplier?

If the company's employees are not polite and friendly, your “high level of service” is worthless.

And if you want to boast about the professionalism of your employees, tell us about them separately: where they received their qualifications, how long they have been working in their specialty and what they can do.

Individual approach

This expression has not convinced potential customers for a long time, it is so hackneyed. Most often, they simply don’t notice him, and if they do, they grin skeptically, mentally saying “well, well, of course.”

Don't believe me? Look through the websites of your competitors - in 99 cases out of 100 you will find this phrase, if not on the “About the Company” page, then on some other page.

Replace general phrases with specific information.

List point by point everything you rely on when developing a project or completing an order. Explain what you mean by the concept of “individual approach”.

Surely put fulfilling the customer’s wishes first. But you understand that others are doing the same thing. Agree, it’s hard to imagine a designer who makes a red kitchen for clients who dream of a green one.

Write, what is included in your system of relationships with customers →

• How do you satisfy the needs of each client depending on the specifics of the tasks assigned to them. What exactly do you take into account when developing a project or completing an order?

• What additional terms of cooperation can you include in a standard contract at the client’s discretion: different payment schemes, individual discounts, delivery, assembly.

• How broad are the powers of the client who wishes to participate in the process or observe it with the possibility of adjustment. At what point are wishes no longer accepted?

Low prices and/or great deals

Another “nothing” stamp. And if you consider that not only low, but also high prices can drive sales with equal success, then this advantage becomes completely useless.

Instead of empty words use honest numbers.

For example: we offer Scandinavian-style kitchens at prices starting from 20,000 rubles per square meter; the basic package includes standard sections, a countertop, a sink, and a dish dryer.

Or: in January we are reducing the cost of the “Chicardos” collection by 30% - when ordering a kitchen 3 meters long, you save 25,000 rubles.

Most often, companies that have nothing else to attract a client say about low prices. Don't deny the buyer minimum math skills. Believe me, he will do a great job of comparing prices on his own.

When choosing a product, the buyer compares several alternative (not identical!) options:

• wooden houses - with brick and aerated concrete
• white gold jewelry - with silver and platinum
• facial mesotherapy - with sculptural massage and plasma lifting.

Make a comparison table, based on the results of which your offer wins as the safest, fastest to achieve, durable (warm, prestigious, comfortable - select the advantages of your product or service). And then the price will fade into the background.

A wide range of

These 18 characters without spaces will only become an advantage when the client sees them as a solution to their problems →

• Possibility of choosing from a specific product range. You can offer dozens or even hundreds of gold rings, but the buyer is interested in a specific size. And if it is not on the display of the online store, for the client the slogan about the richness of the assortment will remain zilch. An initially loyal visitor will go to competitors next time, so as not to be disappointed again.

• Opportunity to purchase related products- a lid for the frying pan, a brush for collecting animal hair - for the vacuum cleaner, wipes for cleaning the screen - for the monitor. This is beneficial for both parties. The client buys everything in one place and saves on delivery, the seller increases profits by 5-15%.

• Possibility to order a turnkey service. When you talk about a company's wide range of services, list them. Indicate which of them you provide separately and which ones only as a package. For example, a consulting company performs naming exclusively as part of a multi-stage company registration service, while assistance in preparing documents may be outside its scope.

Often a list of useless benefits is posted in the “About Us” section. Already fixed it? Great! Now check whether you have used all the ways to persuade customers on the “About” page. Look into the arguments that hit the mark.

And admit in the comments, do you often have professional professionals with an individual approach working in your companies? 😉

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