As more and more markets commoditize, brand becomes a critical factor in the purchase decision. In most large cash cow commodity markets, there are typically only two or three major players. Everybody else is left picking at single digit marketshare scraps with little to no growth opportunities. And no one wants to be there.

You have basically three options for long term growth (this isn't about low price strategies). One, you can launch a break-through product or service in your category. Think bagless vacuum cleaners. When there were only bagged vacuums, all the players were pretty much equal. Then the bagless came out in Japan and revolutionized the market - and put most of the aftermarket bag suppliers on the hunt for business. It was a game changer. Before those bagless vacs appeared, people just assumed they needed a bag to catch the dust. Once bagless was the standard, the market leveled off again.

The second method is to be seen as “head and shoulders” better than anything else in the market. Think Dyson. When that brand was launched there was little growth or movement in vacuum cleaners. Now Dyson is stealing share from everyone. They really didn’t invent anything new or revolutionary, they just made a better product. They’ve done a great job creating a product that took advantage of the weaknesses of current market - weak vacuums that lose suction and pass a lot of dust through back to the carpet. And they’ve put their message out with consistently stylish advertising and marketing. Everything about a Dyson looks high tech, expensive, and worth it. They made vacuums stylish. It makes sense when you consider that Mr. Dyson was not an engineer by trade, but an industrial designer.

The third way to grow is to niche down to a specific audience. The unlimited shelf space on the web and powerful search has allowed for effect niche marketing. More and more firms are moving to a niche marketing strategy. They want to be seen as the best provider of a very specific offering or audience need. The Long Tail theory tells us that a lot of small providers with very passionate customers can be as powerful as one or two large providers. They can control a larger percentage of share than previously realized. It's why most people rent the top 1-100 videos at Blockbuster stores, but they rent #101-10,000 on NetFlix. It's an economic response to abundance versus limited selection. Of course, now Blockbuster is making a big push into NetFlix territory with their web offering.

The average retailer cannot compete with Wal*Mart. My advice is to not compete head-to-head. The Wal*Mart brand is known for low prices not premium products. You can make a lot of money offering the high-end products that Wal*Mart could never push. If a Mom & Pop shop tries to compete with Wal*Mart head on, they're going to lose - it shouldn't be a surprise by now. They would be more profitable if they differentiated. In theory, Mom & Pop shops have the advantage of convenience and the potential for much better customer service - both of which can be powerful drivers of customer loyalty.

If you cannot easily answer and defend what you are the best at, chances are you're heading to commodity-ville. Start planning now how your products and services can change the game, stand out from the competition or attract a niche audience. Once you can easily answer the question, your audience will you when promoted properly. People are always looking for specialists to solve their problems. Being recognized as an expert makes your marketing efforts a lot easier. No one wants to be sold, but everyone likes to buy. Being seen as a specialist creates a buying environment, not a sales situation.

What do you do better than anyone? How will you present your brand image to take advantage of your new positioning? Are you going to completely change the game, simply make the best product, or fully satisfy a niche need?

Nick Rice • Lexington, Ky • nick@cre8tivegroup.com • www.cre8tivegroup.com