Unique Selling Proposition

Unique Selling Proposition (USP) is defined as the factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition. The crucial factor to effective selling is USP.USP is framed using the 4P’s (Price, Product. Place & Promotions) also known as marketing mix. A strong USP helps a company to stand out from its competitors. Customers can have a variety of options and it will be difficult for companies as well as customers if they don’t know what separates product/service from another. Therefore, companies develop USP in order to create differentiation and be remembered in a packed marketplace.

Companies use different approaches like brand image or understanding the targeted segment group buying motivations etc. Forming a USP is not easy and requires lot of creativity and understanding the market. It is also important to defend and preserve USP as competitors will do what they can to neutralize it. Here are a few great examples of some USPs in market:

AVIS

We are number two, we try harder

For many years, Avis is the second-largest car rental company, while Hertz is ranked number one. The 'We Try Harder' movement was so successful that Avis market share increased from 11% to 35% in just four years.

Saddleback Leather Co.

This company has a killer USP that says, “They will fight over it when you’re dead.”

M&Ms

The milk chocolate that melts in your mouth, not in your hand.

Comments

Managing Older Workforce

I recently listened a "HBR podcast" series on how to manage older people at work .These days, managers need to adapt to different kind of generations seen in workforce and act accordingly. It was mentioned that there are 5 generations in workplace today and methods that work with Gen X/Z may not work with millennials and vice versa. Expectations also change based on times and norms of that era. One of the trends being seen at workplace these days is younger managers with people under them who are much older and experienced and managing these “older” people requires additional care on the part of managers. The podcast talked about three cases pertaining to older generations and how they perceived, areas of age, experience, modern technology tools, etc. and how their views are the source of frustration for their younger counterparts. Managing of the diverse workforce and changing workforce demographics are related to strategic human resources management. Managers ...

Two Sides of Corporate Social Responsibility

Corporate Social Responsibility (CSR) -- it is the hottest topic out there. Should we trust that companies live up their values or there are any underlying motives? But, let's first start by exploring the definition of Corporate Social Responsibility (CSR). It is defined as the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life ( World Business Council on Sustainable Development, 2000 ). So, CSR is based on the belief that companies make positive contributions to society. Some examples of CSR activities that organizations participate to be socially responsible are as follows: Philanthropic CSR- Companies donate to the needy via charities. Their donations include clean water programs, helping those affected by natural disaster etc. Environmental CSR- It is very important to limit pollution. Companies participate in CSR by lim...

Printing Money - Challenges & Recommendations

Last week, I wrote about how printing money can be a viable solution to boost economic growth of a nation . If implemented properly, it can help in eliminating the debt of a nation. However, it comes with its own set of challenges. I will also discuss about addressing these challenges. Challenge 1 – Excessive printing of money We all know that excessive printing of money can cause an alarming inflation. This was faced in countries of Zimbabwe, Germany and Weimar. Recommendation - Money financing should be used sparingly, and for specific situations such as to pull an economy out of a lengthy slump or to write off excessive public debts. If we accept money finance as a normal operation there is a danger that future governments will abuse it greatly. Challenge 2 - “Printed money takes the form of credit which mostly goes to investors or the government” (Osama Diab,2017) The first beneficiaries of the printed money are financial institutions, who have access ...

Kaivalyam

Search This Blog