Ms. Knutson

Sales & Marketing

You Can Differentiate on Anything!

By Bonnie Knutson, Professor, The School of Hospitality Business/MSU

Imagine that you are driving along on a quick trip from the office to a meeting when suddenly you crave some coffee. Would you pull into Dunkin’ Donuts for a steaming Latte? Or would you slip through Starbuck’s drive-thru for a hot, strong Espresso? Maybe you would stop by your favorite little neighborhood coffee café where you can sip your beloved sweet Mocha Cappuccino topped with a dollop of whipped cream and a swirl of chocolate syrup. But then there is always a convenient C-store with its quick vending options.

Well, if you were in Seattle, where the coffee experience is an obsession, you may just decide to swing into one of the new generation of coffee shops -- the Sweet Spot Café, the Natte Latte, the Cowgirls Espresso, the Moka Girls, or the Bikini Espresso. And instead of buying a Latte, an Espresso, or a Mocha Cappuccino, you might order a Wet Dream or a Sexual Mix. Welcome to the world of “sexeprsso” shops, as they are called. They are “sort of like a Hooters for coffee,” explained a spokesperson for the sheriff’s department, but they are not against the law. And the truth be told, a lot of them are doing a land-office business.

Sarah Araugo, owner of the Sweet Spot, supposedly started the trend in 2005 after looking for a way to differentiate her business in an over-crowded and ferociously competitive Seattle coffee market. She started by having theme days, such as Tube Top Tuesdays, Wet T-Shirt Wednesdays, and Fantasy Fridays. She renamed the drinks and, inevitably, new job titles developed, such as “bikini baristas.” Business skyrocketed. Ditto for the Cowgirls Espresso. When they launched Bikini Wednesdays, their business doubled…as did the baristas’ tips.

So what is the moral of this story?

Coffee? No.

Espresso? No.

Sex? Definitely No!

The moral of this story is that you can differentiate on anything. The lesson is that you have to differentiate on something. Your property must be known for something that clearly sets it apart from its competitors. Some cases in point:

• Absolut Vodka, a Swedish brand of vodka, uses advertising to separate it from its competitors. In a market segment that is pretty generic in product qualities (Well, some vodka aficionados might disagree on this point.), Absolut’s fame is due to its long-running print advertising campaign that is based on the distinctive shape of its bottle.
• How can you differentiate something as simple as panty hose? Ask L’eggs. By putting a common product in a funny little package that resembles an egg and coining a name from a combination of “egg” and “leg”, the brand was able to set itself apart from its competitors.’
• Then there is Trader Joe’s. This unique concept gives the consumer not a grocery store but a differentiated grocery experience. When most people think of grocery shopping as drudgery or a chore, Trader Joe’s developed a store concept that sets it apart. As they point out in their website, “If there’s one thing that sets us apart from all the other grocers out there, it’s …not just the products themselves, but how we bring those products to you.” Not bad for a loaf of bread and a quart of milk.
• And what about I-Pod’s white headphone cord, Dick’s Last Resort’s funky, rude service, and Wal-Mart’s famous low prices. Newman’s Own stands out because of its social consciousness, W Hotels stand apart as the “trendy” hotel (what ever a “trendy” hotel is), and The Apprentice has The Donald as its point of differentiation. Marilyn Monroe was known for her beauty, Einstein for his mind, and Paris Hilton for her…well, we won’t even go there.

In marketing, the term attribute is widely used but rarely understood. Simply put, an attribute is a characteristic or distinctive feature of a business. While each hotel is a mixture of many characteristics, products and services, being known for one of these attributes is what makes it unique in your guest’s mind. Marilyn Monroe could have been an intellectual genius, but that wasn’t what she was known for. What made her special was that pinup beauty. In the world of umbrellas, the Brigg is arguably the most famous, not for its design, its materials, or its price. Its claim to fame is the fact that it has been awarded the Royal Warrant as umbrella supplier to the Price of Wales. And who wouldn’t want to stay dry the same way as the royal family does?

The same differentiation rules goes for Crest; it fights cavities. AFLAC has the duck. Madonna Inn is the home of those funky guest rooms. Westin lets you sleep in a heavenly bed. And Ragu; it’s Italian. The thing that has changed most in the hotel business over the past decade is the amazing proliferation of product choices in virtually every segment imaginable – from design of the public spaces into “community” areas to the services available from the concierge. The only way your property can stand out among its competitors is to be known for something. Anything. It can be the original bed and breakfast in town; it can have the largest ballroom in the area; it can have the best sales staff service in the state. But it has to be known for something.

Peter Drucker once defined leadership as “thinking through the organization’s mission, defining it and establishing it, clearly and visibly.” At the beginning of the 21st century, marketing guru, Jack Trout, author of Differentiate or Die, said that in this age of killer competition, he would change the definition to ”thinking through the organization’s difference, defining it and establishing it, clearly and visibly.” I agree. If I can borrow from Star Wars Yoda,, “Try not. Do. Or do not. There is no try. Only different in your mind. You must unlearn what you have learned.”

So think through your property’s many attributes, find the one that makes it unique, and then creatively promote it to the world.

Your REVPAR will thank you!

Bonnie J. Knutson is a professor in The School of Hospitality Business in the Broad College of Business at Michigan State University. She is an authority on emerging lifestyle trends and innovative marketing. Her work has been featured in The Wall Street Journal, USA Today, and on PBS and CNN. She has had numerous articles in industry, business, and academic publications. Bonnie is a frequent speaker for executive education as well as business and industry meetings, workshops, and seminars. Dr. Knutson is also editor of the Journal of Hospitality & Leisure Marketing. Ms. Knutson can be contacted at 517-353-9211 or drbonnie@msu.edu Extended Bio...

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