The concept of USP Analysis can be defined as the finding out the factors that distinguishes your products offered from the ones of the competitors and helps your brand tailor a unique personality in the market and in the minds of the consumers.
Breaking-down the concept of USP Analysis :
It works as the competitive edge for your business and gives your brand a separate and individualistic identity as compared to your direct and indirect competitors in the market. It simply means that the features and attributes that your product offers and your competitors don’t have the capacity and bandwidth to offer the same.
USP Analysis is the set of unique aspects of your brand and its offerings that only you can offer and command a premium for the same that helps your company to enhance the brand value in the market and attain the business goals and objectives.
The concept of USP Analysis helps in deciding the various business strategies such as marketing ideas, promotional techniques, and manufacturing processes as once the unique selling points or propositions are figured out by the management of the company, the entire gamut of business operations revolve around the same and it works wonders for the brand and the overall company.
As much as it is very crucial and imperative to conduct the USP Analysis is it also quite very difficult to find out the unique selling points of the brand and its offerings owing to the tough competition in the market and competitors offering the similar line of products having the same or comparable features and attributes. This makes it very complicated for the brand to come up with the USP’s that differentiates it from the competition in the market.
Once the process of USP Analysis is concluded and the brand has figured out its unique selling points, it has to protect, defend, and nurture it in a dedicated and best possible manner as they can be copied very easily by the competitors in the market.
If it is getting difficult for the management of the company to figure out the unique selling points that will help the brand to carve a niche for itself in the market and in the consumer’s mind, it has to go an extra mile and conduct a thorough market research and analysis. It involves studying the market trends that have ruled the industry for many years, the current ones that are ruling the roost, and find out the futuristic trends as well.
As a part of the process of USP Analysis, the brand also has to conduct a research on international markets and study the nature, features, and attributes of their products that are similar to the ones of the brand. This strategy works as a source of inspiration for the brand and can definitely help the company to plan and design the unique selling points or propositions.
The USP Analysis is just not restricted to the nature, type, and the unique features of the products offered by the brand. It can also be the levels of customer service, the price range of the products or quality of the products offered.
The process of USP Analysis :
1) Understand the core values of your brand
The first and foremost step in the process of USP Analysis is to understand the core values and nature of your brand that works as the fundamentals of setting up your business in the market. Figure out the reasons why you started out the business and the aims and objectives you had in mind during the inception of the brand. It is very important to get connected to the roots of your business to come up with the unique selling propositions.
2) Understand the characteristics that your customer values
If the certain section of customers is coming at your online and physical store for the repeat purchases of the products offered and is also referring the same to his or her friends and family, then you have to find out and understand the product or the brand characteristics that is working as the pull factor for the customers and is making them your loyal customers.
3) Conduct surveys
In continuation to the above step in the process of USP Analysis, it is quite imperative to conduct a small set of the survey with the customers to take their feedback on your brand and its offerings of the products. The questionnaire can be the small and easy one asking them that which factor attracts them the most. Is it quality, price, customer service, after sale services, hospitality, the environment of the store, or any other attribute of the products. In case of an online retailer, questions can be asked if they are happy with the interface and user experience of the website, delivery timelines, and the payment procedures.
4) Do a competitive analysis
In the process of USP Analysis, it is very important to conduct a competitive analysis of the brands that pose as direct as well as indirect competition to the brand. Right from analyzing their core business values, fundamentals, objectives, target market, target audience, nature and features of the products offered, the price range of the products, marketing and sales strategies, unique selling points to customer service levels.
5) Rank yourself as compared to the competition
In continuation of the above step, the next action involves to do a comparative analysis with the competitive brands and rank your brand and its offerings. This is one of the most significant steps in the process of USP Analysis and helps your brand to find out it’s standing in the market.
6) Sit together and brainstorm
After the completion of the above 3 steps in the process of USP Analysis, the next step demands the management and the other key members of the company to sit together and brainstorm on the surveys conducted with the customers and astutely analyze the core values, objectives, unique selling points, and product features of the competitive brands. Aftermath, come up with the unique selling propositions of the brand that is innovative, special, unique, and outlandish in nature and are sure to take the brand and its offerings a notch higher.
Importance of USP Analysis:
1) Competitive edge
Conducting the USP Analysis helps the brand to figure out its unique attributes and features that are quite distinctive and unique as compared to the competitive brands in the market. It gives the brand a competitive advantage and helps to attract new customers along with retaining the current ones converting them into the loyal ones.
2) Enhanced brand value
Have a strong set of unique selling propositions helps the brand to curate a distinctive identity in the market and in the minds of the consumers that enhances its brand value in the target market. This aspect also facilitates the management of the company to tap the new market and launch the new line of products due to the strong legacy that has been built.
3) Help to command a premium
Having strong, novel, and innovative set of unique selling propositions helps the brand to command a premium for its product offerings as the company has developed a loyal set of customers who will indulge in the purchase of the offerings by the company.
4) Higher sales
The process of USP Analysis results in the brand harping on its unique selling propositions, values, and attributes highlighting the brand strengths and its offerings in the positive light and all this results in the higher amount of sales with the company able to accomplish its short-term and long-term business objectives
Examples of USP Analysis :
Apart from the gourmet selection of pizzas, kinds of pasta, and other delicacies, Dominos has kept its cash registers ringing on the unique selling proposition that says if the pizza order doesn’t get delivered in 30 minutes, then it will be free to the customer. Timely delivery without any compromise on the facets of quality is one of the biggest USP of the brand.
Lush is the cosmetic brand that specializes in the handmade range of cosmetics such as lipsticks, hand creams, and more. The brand harps on its unique selling proposition that all the products are absolutely handmade and handcrafted being free from the harmful toxins and chemicals that can harm the skin of the users.
3) Apple mobile phones
The technology giant Apple is renowned all over the world for offering the mobile phones that are sleek and aesthetic in design plus its picture quality and user interface it’s quite loved and adored by its loyal fans in the country of USA and across oceans. The facets of high quality, innovative design, and operational excellence work as unique selling propositions of the brand and helps the company to command the premium from its loyal customer base.
For any brand to be successful at the marketplace amidst the tough and ever-growing competition, it is very imperative to conduct the USP Analysis in order to gain the competitive advantage and accomplish the objectives of higher brand value, enhanced reach, loyal customers, revenue generation, and elevated profits.