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The Importance of Branding and Product Differentiation



In this article, I am going to cover the importance of branding and product differentiation in the marketplace. In this fast-paced world, conditions change quickly and demand shifts at the blink of an eye. The key to survival often relies on ones ability to identify existential threats and the capacity to react to unexpected and adverse conditions in the marketplace. 

Throughout my daily travels over the years, I've come to realize that many businesses do the same things over and over in hopes of gaining market share. However, the end result is often the same. Business owners are left wondering; nothing seems to work, and they just can't seem to put a finger on why nothing has changed. In the floor covering world, it’s like a big game of follow the leader, but who’s leading? Really, it’s more like a race to the bottom, and no one ever seems to win. This is especially true in the hardwood flooring industry; where competition is fierce, and the suppliers are endless. Yet, the consensus remains the same; the demand for more private label products. Private label products are ever increasing, and brand recognition seems to be a thing of the past. 

In the floor covering world, many companies; including Shaw and Mohawk source products from Asia and other countries around the world. Over the last 10-15 years, the market has seen an influx of products like never before. Throughout my daily travels, I often see the same things over and over. Showrooms are often filled with the same products, with little to no product differentiation from store to store. As companies move away from the concept product branding, differentiation becomes less important. In reality, this could not be further from the truth. Many business perceive brands as a hinderance. Therefore, they are becoming more concerned about getting undercut by a competitor, because of a particular brand, and they often develop tactics to sell against it. 


The importance therein lies in ones capacity to understand the importance of branding and differentiation. Differentiation in the marketplace is of utmost importance. How one goes to market and the products they offer, can make or break a company. Many factors influence a business’ capacity to adapt to changing conditions in the marketplace. Companies must analyze local and regional demographics such as income levels, labor capacities, age, and other environmental factors. However, the sales methods used are equally important. In order to be successful, companies must often adjust their approach to doing business. By placing such a strong emphasis on private labeling, companies often leverage their competitive advantage by disguising the brand name by any means necessary. This allows companies to minimize their competition; thus making it more difficult for the consumer to shop the product. The problem is, that the product story and the sales process is often lost along the way.  

Recently, a customer told me he does not want any name brand products in his showroom. To combat this attitude, I asked him if he knew about the importance of branding. So, I asked him the following  questions. “If a customer is looking for a particular brand, style, and color, how would you sell that customer; assuming the customer wanted no other product”? “If everything is private labeled in your showroom, how would you handle that situation”? With no response, he stood there. The sales process is much easier, clearer, and well-defined when the consumer knows exactly what they want. Private labeling has its advantages, but it often comes with its own price tag. 

For a manufacturer, branding is of utmost importance. In the marketplace, branding and product differentiation go hand-in-hand.  Private labeling has its advantages, but customers still want and value a recognized, respected, and well-known brand. Try to tell companies like Apple, or Microsoft that branding is not important. The floor covering industry is no different. So the next time your in the market for hardwood flooring, consider the brands and why they are different. Never purchase anything solely on price alone. For without a brand, there is no product, or story to be told. 

John Cooper 
Regional Sales Manager
Bella Cera Hardwood Floors

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