A few days ago, I had the privilege of leading a strategy workshop at the Kenya Cottage Industry Expo, organised by Kayana in Nairobi, which brought together a group of dynamic business owners eager to scale their companies. Drawing on my experience as a strategist, having worked with over 40 brands across industries including international NGOs, banking, insurance, and consumer goods, I shared key insights with the attendees. One topic, in particular, sparked the most interest: the common strategic mistakes brands make in marketing and communication.
Differentiation Isn’t Always the Answer
Business leaders are often passionate about their products or services. They approach marketing agencies with a list of unique selling points (USPs), claiming their offering is faster, more efficient, more affordable, or simply better than the competition. They then expect strategists and creatives to whip up compelling campaigns in a matter of days to meet ambitious revenue targets.
“We just have to tell people how great our product is, and they will buy it!”
However, in today’s market, most industries are commoditised, and consumers are spoilt for choice. With so many brands claiming to be the best, most customers don’t have the time or inclination to compare every feature. Instead, they make their purchasing decisions based on factors such as price, past experiences, how they feel about the brand, or recommendations from friends, family, or salespeople.
While brand managers love the idea of differentiation, it often fails in highly commoditised markets. Differentiation is a powerful strategy for brands offering capital-intensive equipment or specialised solutions, but for many businesses, especially in consumer goods or services, it’s an uphill battle.
Let’s say you’re an entrepreneur looking to purchase industrial equipment to boost your production capacity. You would likely task an expert, perhaps a technician, with extensive research and to present you with several options. The expert understands the nuances of product quality, maintenance costs, and the features that matter. In this case, communicating unique attributes such as product quality, features, and design will help your potential customers make an informed choice.
But when it comes to everyday consumer goods such as food products, financial services, or household appliances, the situation is different. Most customers don’t have the expertise to evaluate every detail. They choose based on their emotional connection to the brand or on how others perceive them. The USPs become a rationalisation for decisions that are already heavily influenced by feelings.
In these markets, relevance is far more effective than differentiation.
As Elliot Schreiber wisely put it, “Differentiation is all the people you date; relevance is the one you marry, because you can’t live without them.”
The next logical question is: How can you build brand relevance in a saturated market? Here are four key principles to help your brand remain relevant.
1. Be Customer-Obsessed
As a business leader, you must dig deep to understand your customers’ evolving needs, desires, and frustrations beyond the product they buy. Many businesses, especially in industries such as banking or retail, refer to their customers as “account holders” or “policyholders,” forgetting that they are real human beings with aspirations, fears, and emotions. To create relevance, you must see your customers through an empathetic lens. Understand their life goals and pain points, and position your product or service as a solution to their problems.
I worked on a cooking oil brand that was losing market share despite offering a product with health benefits, antioxidants, and no trans fats. After some research, I discovered that consumers liked the brand but were frustrated by its tendency to solidify in cold weather. This made it difficult to use, leading to waste and dissatisfaction. Our solution? We highlighted that the brand had addressed this issue by reformulating production to keep the oil liquid during colder months. That change improved customer satisfaction and increased sales.
2. Be Ruthlessly Pragmatic
In today’s economy, customers are looking for value. With rising costs and shrinking disposable income, many people are no longer loyal to any particular brand. They choose the cheapest option that meets their minimum expectations. This means that, in some cases, the lowest price wins, especially for everyday items like toilet paper, where customers may pick up their preferred brand but opt for the cheaper option if they see no noticeable difference.
I recently spoke with the owner of a chain of stores in Kenya, who observed this shift in consumer behaviour. Customers who once frequented high-end supermarkets were now shopping in his stores, sometimes with bags branded by competitors. In response, he began offering more white-label products at competitive prices, which significantly boosted sales.
Given today’s economic pressures, brands must be mindful of price sensitivity and the impact of discounts, bundles, and consumer promotions on purchasing decisions.
3. Be Distinctively Inspired
As Simon Sinek says, “People don’t buy what you do, they buy why you do it.” A brand is more than a product; it embodies a vision, a set of values, and a character that resonates with customers. The emotional connection between a brand and its audience is vital. If your target market feels that your values don’t align with theirs, earning their loyalty or advocacy will be difficult.
Three years ago, Marie Stopes Kenya (MSK) approached us with a major problem. Customers and even employees did not want to be publicly associated with the brand, despite offering high-quality services at an affordable price. The brand had a poor public perception, mainly due to its association with abortion services. Over 90% of sentiments were negative, with the general public constantly chastising the brand and anyone associated with it for being anti-family. An abortion clinic.
To tackle this negative brand perception, I developed and deployed the 75% fat-free strategy. The rationale behind this is that when people are offered two burgers, one labelled as containing 25% fat and the other described as 75% fat-free, most would choose the 75% fat-free burger and even claim it is delicious, even though they both mean the same thing. Instead of emphasising the abortion services, which only accounted for less than 10% of what MSK offers, we emphasised how MSK supported women and families, highlighting 90% of services around antenatal care, delivery, and menstrual issues.
We invited people to share their birth stories, capturing their experiences of delivering babies at the clinics. The campaign was a resounding success, leading to a 40% increase in new business and shifting public sentiment from 90% negative to 90% positive. It was also recognised as the Best Digital and Social Campaign at the 2021 Marketing Society of Kenya Awards.
4. Be Pervasively Innovative
Innovation isn’t just about launching new products; it’s about continuously finding ways to improve customer experiences and processes. A great example of this is back in 2014, when Pernod Ricard was seeking digital transformation to bridge the gap between the consumer and the business, while Jumia was seeking to expand its offering and increase relevance. Martin Kiarie who was the lead strategist on this landed on the insight around a rise in home entertainment. At the time, there was no formalised drinks delivery platform. He brought the two parties together, proposed an exclusive online drinks platform, Jumia Party, and brokered a deal. As the first of its kind in Kenya, the platform achieved 120% sales within the first month and generated revenues of about USD 2 million by the time the agency relinquished its stake. This simply highlights how critical relevant, innovative ideas can be to growth.
Innovation doesn’t always have to be groundbreaking, but it needs to be relevant to your customers’ lives.
Instead of competing on differentiation in a saturated market where everyone claims to offer unique value, embrace the four principles of brand relevance: customer obsession, pragmatism, inspiration, and innovation. By embedding your brand meaningfully in your customers’ lives, you’ll not only meet their needs but also build an emotional connection that keeps them loyal. Over time, your brand will occupy a special place in their hearts and wallets.
