You’ve got to stand out. Especially in the drinks industry where there are so many great offerings on shelf. It’s a cliché because its true, f you want success – you must go and get it as it won’t just come to you!
And with countless brands vying for attention, differentiation has become a defining factor for achieving and maintaining market presence.
Here’s why differentiation matters, how you can achieve it and how it can benefit brands, bars, distributors, and ultimately – drinkers.
Why is it important for brands?
On a basic level, differentiation helps brands become more visible and recognisable. In a crowded market, unique branding, flavours, and stories will stand more chance in catching the consumer’s eye and create a lasting impression.
But take it further and you’ll find that unique products and experiences also foster customer loyalty. Meanwhile, brands that offer something distinct are less likely to be overshadowed by competitors and can command premium pricing.
Because of this, differentiation provides a competitive edge both in helping make that first sale, as well as for repeat purchases.
Drinkers aside – differentiation helps in the trade
Bars thrive on offering a diverse range of drinks. Brands that fill gaps or present categories (new or established) in unique ways can enhance a bar’s ability to cater to their audience.
But there’s a catch. You need to balance the need to solve a genuine need in a bar’s range with ensuring your product is not too esoteric. You want your product to stand out but still be approachable and versatile enough to be regularly used and ordered…
To achieve this balance, you need to be strategic.
If you have something that’s genuinely ‘out there’ – highlight versatile applications and build in training sessions as a big part of your route to market strategy.
Typically however, most NPD aims for a moderate level of uniqueness and most products that have longevity in the industry balance familiarity with novelty (or a distinct identity that makes them unique).
They do so by introducing new elements that are intriguing but not completely foreign. For instance, a unique ageing process or flavour extraction method for an otherwise well understood spirit. They build on that by crafting a compelling brand story that can add value and interest without being too niche.
We always come back to the same phrase, it’s good to be different, but different isn’t always good. There’s no point having something so weird that it is interesting conceptually but performs poorly commercially…
How can you focus on your point of difference?
Identifying your brand, product, and distillery’s point of difference is the first step to standing out. In 99% of cases, this is done before the brand is made and the product is launched. Sure. But trends change, consumers change, needs change and what might have had an edge years ago often doesn’t after some time in market. Especially if it was genuinely successful as other’s will have mimicked it to steal some of the limelight.
Because of that, many find themselves in the position of having to redefine their USP and reimagine how to articulate their point of difference.
While the approach to discovering these unique traits may vary slightly at different levels, there are some universal steps you can take to ensure you are highlighting what makes you distinct.
Here’s how to identify those differentiators effectively:
Do your market research
Study your competitors to understand what they offer and how they position themselves. Identify gaps. Do the same with your target audience. Understand their preferences fully.
Re-clarify your brand identity
Reflect on your brand’s mission, values, and vision. Your unique ethos and purpose should be a strong differentiator and if none are being applied, that’s where to start. Meanwhile, if none apply any longer, define it once more and don’t be shy to reset.
Once you have, craft a compelling brand story that highlights your journey, heritage, and what sets you apart.
Differentiation at different levels
While the above steps are universal, differentiation can also be specific to different levels within your business. Not everything that sets you apart is about your product, nor does it have to be at distillery level, or just in the customer service etc.
When you are looking to (re)gain your advantage through differentiation, make sure you factor in the following.
Brand Level
Brand Voice and Personality: Define a distinct voice and personality that resonates with your target audience. This can be playful, sophisticated, adventurous, etc.
Visual identity: Develop a unique visual identity and packaging design that stands out on shelves and online. It’s more than a logo! Spoiler alert: It about consistency more than it is about any individual item.
Product Level
Product definition: What does your product offer drinkers that few others do? How does it do this, how is it palpable and how are you communicating this at every touch point?
Application & association: What are you suggesting it for? What occasion, cocktail or setting are you consistently going after? How are you positioning your product and engineering situations in which it’s perceived in a way that will naturally highlight your USP?
Distillery Level
Heritage and journey: Emphasise your distillery’s journey. Your story will naturally be unique if you present it authentically. Even though some will share similar history, or traditions, or certain practices – none have the same combination as you. Once you present it well, in the tone of voice and with the brand personality you have chosen – it will be unique to you.
Location and environment: For some, geography plays an important role in creating differentiation. If so, highlight the unique aspects of your distillery’s location, such as the local climate, water source, or terroir, which influence the product’s characteristics. Why does it matter to the drinker? Try not to be generic here. Ask yourself how someone can relate to it and why they should care about it, not just describing what is around you.
Implementing differentiation strategies
Once you’ve put all this work together, begin implementing it and the key word here is consistency. Ensure your unique points of difference are consistently communicated across all marketing channels, packaging, and customer interactions.
Use content marketing to educate your audience about what makes your brand, products, and distillery unique. This can include blog posts, videos, and social media content.
Continuously seek feedback from customers and be willing to adapt your strategies based on their evolving preferences and the competitive landscape. Lean into what’s working and keep sharpening your position around that.
Continuous evolution
Differentiation is not just a strategy but a necessity. By focusing on unique offerings that solve genuine needs for bars and stand out as distinctive to drinkers, brands can build stronger relationships and enhance their market presence.
Ultimately, differentiation drives consumer interest and loyalty, ensuring sustained success in an ever-evolving market.
You will need to evolve and adapt your point of distinction as you grow. That’s normal. It’s okay to look at what you have today and no longer see something that’s genuinely different to other offerings on shelf anymore.
That’s not a sign that you have failed.
It’s a sign that the market has evolved and it’s time you went back to planning your brand’s strategic positioning and re-centred yourself around what will stand you apart going forward.
Brands that prioritise differentiation will not only survive but thrive.
And when you look around – the brands that have managed to keep finding new ways to stay relevant while also staying true to their core truths, have gone onto become household names.
It’s a balancing act and it’s not easy – but it is possible if you keep a sharp focus on what makes you different, not just what you do…
