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Differentiation is the process of distinguishing a product or entire offering from others, making it more attractive to a particular target market. This involves differentiating it from competitors products and standing out on the competitive landscape through unique positioning.
Differentiation is a source of competitive advantage. Marketing or product differentiation is the process of describing the differences between products or services, or the resulting list of differences. This is done in order to demonstrate the unique aspects of your product and create a sense of value. Without question, differentiation must be valued by buyers. The term unique selling proposition refers to advertising to communicate a product’s differentiation.
Under The Next Idea terminology there are two forms of Differentiation: ‘Duplicate’ and ‘Exclusive’.
Duplicate Differentiation refers to differentiating product or offer features that can be found elsewhere.
Exclusive Differentiation refers to differentiating product or offer features that are unique in the market and are unavailable elsewhere.
The term Duplicate Differentiation applies to areas of a brand that may be executed to a high standard but can be found close-by with relative ease. For example, a restaurant that promises to differentiate by offering first class service is differentiating itself. However the differentiating significance is small as it only applies to those competitors who have less than good service, and whose product and environment does not compensate for the lower standard of service.
Duplicate Differentiation can work extremely successfully, when a wide number of duplicate yet well executed points of difference are merged together. Some examples: Pret a Manger in the UK and Chipotle in the US, both employ Duplicate Differentiating features; they equally provide a fresh product that is attainable very fast, at a competitive price, served in a highly friendly manner. Both offer relatively comfortable surroundings to eat on premise, should the customer wish, and provide extremely clean and sanitary surroundings for customers whether they eat in or take out. Their differentiating features are clearly defined as follows: 1) Fresh (& Humane) good quality consistent products 2) Fast and efficient service 3) Competitive Pricing 4) Friendly Service 5) Engaging environment 6) Clean and sanitary surroundings. Independently, each of these points are positive differentiators, however they can all be found elsewhere at greater or lesser levels. However what makes these brands unique and highly differentiated is their relentless commitment to each and every point of difference, resulting in their brands beating their competitors at every corner – indeed their well executed combination of Duplicate Differentiators provides singular Exclusive Differentiation.
Exclusive Differentiation is different as it represents the highly sought after competitive advantage that organizations aspire to in order that their product or offer stands out against the competition. This often takes the form of patented equipment or products, merchandise design, and the use of certain technologies. Providing demand is prevalent, a firm with well executed Exclusive Differentiation will be unusually successful. Think Dyson – unique Vacuums with patented technology, that work exceptionally well. They built their reputation on Exclusive Differentiation yet they still combined this with some Duplicate Differentiation – personified by its design. Its competitors also had good looking vacuums, yet Dyson ensured its design was equal or better to its competitors, thus maintaining its advantage in the specific consumer requirement of image. Had Dyson not paid attention to its design, and simply rested on its patented technology, they may have experienced some success, but it is doubtful if that success would have manifested to the extent that we have seen. Therefore while Exclusive Differentiation is the Holy Grail of differentiation, as Dyson shows us, loosing site of Duplicate Differentiation, when Exclusivity has been achieved, may ultimately compromise what has been so hard to achieve in the first instance.
In the restaurant world Exclusive Differentiation would apply to unique recipes, style of food presentation, environmental design and product range. Service features heavily, however recently, it has become an even greater global differentiating characteristic. Historically restaurant service was defined either at the counter or at the table. Nowadays Service has many touch points; from traditional counter or table service, through to online ordering, order by phone, deliveries and pick up. Therefore restaurants do have greater opportunity to define themselves through service, given the broad spectrum of technology available, combined with modern dining trends.
However with this new technology comes enhanced risk. For example, a customer having difficulty in navigating a restaurant’s website, will lower their entire opinion of the restaurant’s offer and service, yet [the customer] has not even begun to interact with an employee.
Customers possess what’s known as ZOPA (Zone Of Possible Approval). This is the emotional approval rating that individuals exercise when making choices on what to buy, where to eat, even what car to purchase. What may be perceived as small details by an operator, may actually be deal breakers for customers as their ZOPA rating drops to the floor when a dish is served luke warm and not hot, or their coffee has too much froth. However, give a customer flowers on their unannounced birthday, tell them that they enjoyed the last steak they had and it was served medium, will expand the Customer’s ZOPA exponentially – as the operator has just differentiated itself through the perfect combination of Duplicity and Exclusivity. (Flowers on Birthday = Duplicate Differentiation / Knowing its their Birthday without being informed by the guest is Exclusive Differentiation).
As we enter the new decade, well executed Differentiation, Both Duplicate and Exclusive, will be a key dynamic in deciding who stays and who leaves our industrious landscape. Only time will tell who will successfully navigate the world, and who will hit the perfect storm. What we do know – give a guest flowers on their birthday, and keep them guessing how you ever knew, will be one sure way to stay in your customer’s heart forever.
Robert Ancill is CEO of Restaurant Consulting Services Group; The Next Idea. http://www.thenextidea.net. For information about Business Plans, Financial Forecasting and general start up advice please visit our site at: http://www.thenextidea.net
Headlines scream it, marketers cash in on it, even employers are making a to-do about it. Americans need to lose weight. Robert Ancill, CEO of Food Consultancy The Next Idea, says: “Here’s the skinny: From 1980 to 2004, the rate of obesity doubled in the United States. Over the 2005–2006 period, more than a third of the U.S. population was obese, which translates into more than 72 million Americans struggling with significant weight problems, according to the National Center for Health Statistics”.
What is worse - The number of overweight school-age children in the United States has increased more than 60 percent since 1988.
Ancill says: “The problem is just getting worse not better, it is imperative that all Food outlets begin to understand their responsibility in providing products that have health attributes as opposed to just a healthy profit margin!
The Next Idea (www.thenextidea.net) is a Retail Food and Restaurant Consultancy committed to improving the quality and Healthfullness of the products available to the US Consumer.
For More Information Please View : http://www.thenextidea.net
Importance of Health
“Health is Wealth” – This is a very well said proverb, universal truth for every person living anywhere in the world irrespective of any factors. Even in this damn economic world people are aware with the benefits of a healthy body and mind. They care for their health more than earlier days. Nutrition is among key priorities for elderly, young and kids.
Need for Healthy Diet
For a good health, you need to have healthy and nutritious diet, that too on time regularly. A good diet is important for good health. A healthy and nutritious diet can help to maintain a healthy body weight and reduce the risk of a number of diseases including heart disease, stroke, cancer, diabetes, osteoporosis or malnutrition.
What is Healthy Diet
A balance and healthy diet consists of all required components essential for body. A diet based on cereals, breads, potatoes, fruits and vegetables is a healthy and balanced diet. That also includes limited amounts of dairy products (like milk, butter, cheese and curd), meat, and limited amount of fat or sugar ingredients.
No single food can provide all the essential nutrients that the body needs. Therefore, it is important to consume a wide variety of foods to provide adequate intakes of vitamins, minerals and dietary fibre, which are important for health. When fresh fruits and vegetables are unavailable, canned goods can be a healthy alternative to fulfill the need for adequate intake.
Guidelines for a healthy diet:
If you follow above guidelines, and take care of your healthy diet needs, you’ll reduce your chances of being ill or malnutrition. Remember a healthy and peaceful mind resides inside a healthy body. So, keep yourself healthy and full your life with yours and your loved one’s cheers.
For More Information: www.thenextidea.net
What is the next phase in healthy eating?
According to Robert Ancill, President of The Next Idea, Los Angeles based Restaurant Consultancy consumers are taking increasing interest in Mediterranean cuisine.
In 2007, The Journal of the American Medical Association reported, a combination of the Mediterranean diet, moderate exercise and drinking, and no smoking can
lower mortality rates by 65 percent.
What is the Mediterranean diet? It’s heavy on the olive oil and light on meat and dairy. It also includes lots of fish, vegetables, seeds, grains, nuts and legumes.
The first study was conducted over 12 years (1988–2000) by researchers at Wageningen University in the Netherlands and other European universities. Twenty-three hundred healthy people between the ages of 70 and 90 were surveyed about their eating habits and physical activities.
Another study conducted at the Second University of Naples found that people who suffered from “metabolic syndrome” improved after following a
Mediterranean diet. Metabolic syndrome increases the risk of heart disease and diabetes. Symptoms include being fat around the middle, having high cholesterol and high blood pressure, and improper processing of glucose. After two years, only 44 percent of those on the Mediterranean diet still suffered symptoms.
Ancill reports that The Next Idea has experienced a larger than normal interest in Mediterranean concepts both from entrepreneurs and restaurant investors. In a recent interview Robert Ancill commented; “Possibly we will eventually see a Healthier consumer if such a trend gains traction in the market place, the question is whether operators will understand the unique economics of executing a Mediterranean menu”.
For More Information : www.thenextidea.net