Competitive advantage: quality is not part of it

These well know epithets are not competitive advantage. These are subjective statements, which for odd reasons are frequently positioned as competitive advantages in majority of commercial proposals. Comfortable use, quality, professionalism are subjective notions. Product, which is comfortable and quality in opinion of producer, can be uncomfortable and low-quality in opinion of consumer. Concumer needs detailed information: product should be as stated in package and benefit from purchase of goods should meet advertisement statements. After disappointment from product, the consumer will start to search for alternatives. Even there is no other alternative in the market, the consumer will switch to new products once they appear. If the market is saturated with similar products, the produce risks to lose its consumers immediately after the first purchase, never becoming regular customer. The companies should gain regular customers: ensure that products are sold not only to one time buyers, but they should increase number of loyal consumers. Only with this way, the company can guarantee stable sales level.

What is real competitive advantage?

First of all, it is not quality and not only quality. Food producers love insist on this very much. Why quality should be advantage? Isn’t it requirement that consumer should not poison from sausage, juice or canned food? Even buying low price segment product, the consumer should receive quality product, which meets set standards, sanitary norms, quality ingredients, clean and reliable package.

Quality is not competitive advantage, as it is mandatory condition of any product. Consumer always should receive quality product for its goods. That is axiomatic. If the producers plan to sell goods with expired term of use, violations at their production, storage and transportation, they will damage their reputation and violate legislation.

Second, it is absolutely useless idea to claim market and consumers, producing low-quality goods or services. But, it is also groundless to focus on abstract quality as main reason why consumers should buy products.

The consumers buy products not for their quality, but for concrete and valuable advantages for them.

Main advantages of concrete goods can be:

1. Price is lower compared to similar products of the competitors;
2. Packaging of the good is more practical than competitive goods (especially liquid and bulk materials);
3. The package shows clear quantity of the product, its structure and expiry term;
4. Natural ingredients are used more in product compared to similar products of the competitors (concrete quantity);
5. Good uses less or not uses any chemical substitutes (concrete quantity and types of substitute);
6. Deliver of the good included to its cost;
7. Deliver of the good to client takes not more than XX minutes;
8. Purchase of the good guarantees material benefit (concrete discounts, access to additional services and goods of the same producer and its partners);
9. Consumer, who purchased good, becomes member of close club (usually for high price segment).

The case for services is different. As it is impossible to touch with hands, than key advantage here are:

1. Time to execute service (minutes, hours and days) should be lesser than time of competitor offers;
2. Guarantee for re-execution of services in case of error from the company;
3. Ordering one service, client receive another for free;
4. Ordering one service, client receives part of his/her expenses as gifts or bonuses;
5. Service, ordered again within set time, is provided for free or with discounts.

Consumers are ready to use those products, which they trust. It is important that advantage of the product should be concrete and valuable for consumer, and should not be subjective statement. Reading advertisement statement, the consumer thinks “what is right and what is decorated?”. If consumer, purchasing product, is assured that each advantage statement is correct, the company will gain loyal consumer. If the consumer understands that the statements were not executed, he will buy products of competitors. The firm will be lucky if the consumer does not spread rumors and dissuade friends from purchasing your products.

Artem Safarov is author of the section “People and Brands”. He is specialist in marketing and PR. He studied crisis management at World Technological University. He worked as manager and director of marketing and PR. He launched his first product in the market at his 20s.