The following post is by Fairy Godmother Heather Allard, The Mogul Mom:
Today, my brother Sean emailed me to ask what I thought about a new business he’s considering–baking & selling all-natural dog biscuits.
He loves dogs, has worked with dogs, and last year, purchased a dog biscuit recipe book and began experimenting with different ingredients & focusing on all-natural biscuits inspired by his own dog Aidan’s food sensitivities & skin troubles.
So I Googled “all natural dog biscuits” and came up with 303,000 results. Clearly, there are already a lot of all natural dog biscuits on the market.
Does this mean Sean shouldn’t give it a try?
No, it just means that he’ll have to go into the venture knowing exactly what his point of difference will be. In a nutshell, point of difference is the way in which your product differs from a competitive product.
Wikipedia says that “because of an overwhelming variety of products and services on the market, those that stand out in some manner are better noticed by consumers. There are various (positive and negative) ways of being different compared to competitors in the same market. Differentiation is the term given to the positive way in which a company’s product differs from its competitors. Points of difference (PODs) describe the individual factors of differentiation.”
Point of difference is an important consideration if you sell a product that has serious competition, as in my brother’s case. Some points of difference that Sean can weigh are:
- Price
- Variety
- Features (all natural, exotic ingredients)
- Benefits (eases indigestion, aides weight loss)
- Availability (number of stores that sell his biscuits)
- Convenience (free shipping, auto replenishment)
- Customer service (assistance in purchasing, gift wrapping)
This afternoon, I received an order from Sephora and there were a few samples that I’d selected included with the items I purchased. One of the samples was a product called “No Frizz” (Frizz) made by a company called Living Proof. I opened up the sample packet and read the story behind No Frizz and was immediately struck by how clearly they defined their point of difference. Here’s what it said:
No Frizz is a collection breakthrough, anti-frizz products invented by Living Proof scientists. Formulas that contain the first new frizz control technology in over 30 years! With more than 1,000 frizz fighting products on the market today, just about every one of them tackles frizz the same way–Silicone. The problem is it’s ineffective at addressing the causes of frizz. Silicone coats hair with oil, allowing humidity to penetrate — leaving your hair limp, greasy and full of frizz.
Living Proof scientists set out to cross frizz off the list once and for all. They developed a new molecule that creates an extremely thin barrier on hair and eliminates the two causes of frizz. Water vapor is prevented from penetrating the hair shaft and friction between hair fibers is significantly reduced — resulting in a truly effective anti-frizz action.
So what’s No Frizz’s point of difference? Innovation–they’re the first company in over 30 years to come up with a new way to tackle frizz. They even developed a new molecule to do it, giving No Frizz major “cool” factor. I don’t know about you, but I can’t wait to bust open my sample and try it.
Here are some other companies that I think do a great job of establishing their point of difference:
- Wal-Mart–lowest price
- K9 Cuisine–organic dog food and fast, friendly, free service
- Zappos–massive selection and free shipping & returns
- Mom4Life–only mom-made products & free shipping
Well, what’s your point of difference? Let me know.
Heather Allard is a mother of three and a “Renaissance mom entrepreneur” who has developed products, offered a service and built a blog since 2001. She blogs at http://www.TheMogulMom.com and offers email coaching for mom entrepreneurs. Heather’s products have been seen on Access Hollywood & Pregnancy Magazine and are a best-seller in One Step Ahead. She’s been featured in Working Mother, Entrepreneur and The Well-Fed Writer: Back for Seconds. Contact her via Twitter: @themogulmom or through her site.
Great advice Heather, the point of difference is so critical. We have found that time and time again when we release new products at momAgenda. When the new product has a clear point of difference, it flies off our shelves. When we have introduced less unique products, they have not sold well at all. lesson learned!