Building a Solid Brand Identity

Startups must focus on building a strong, relatively unique brand identity. Having such a brand is a precondition, as it is the spine of modern marketing and business communication. A powerful brand identity shows where the company fits in the market. It will also help gain the trust of both customers and stakeholders and, thus, build a foundation of credibility. In order to do this, the company has to present a brand that is well-connected to the target in both a pragmatic and emotional way. The startup can only expect the target market to choose the company's product by showing a brand value that the target customer can identify with.

At the same time, a good brand should help recruit and retain talent. Many employees are willing to work for brands that resonate with their beliefs, and a good brand should attract such workers and support their efforts in reaching the company's strategic goals.

Differentiating from Established Competitors

To make a profit, a startup has to find ways to differentiate itself from the opportunities the established competitors offer. To do so, the company must know it’s bigger competitors' respective customers and their needs and struggles.

One way to try to compete is to target the general market. Of course, going directly against more established companies will be difficult. Instead, startups can appeal to huge customer bases by looking at specific, generally ignored alternatives and deciding to offer the best service in that segment.

Another major factor is creating a unique value proposition. Indeed, startups must decide what specific benefits or advantages their goods and services offer.

The online lottery provider Lottoland is a great example of a startup that achieved successful market entry. While sticking to the lottery and betting field, Lottoland decided to fill the gap many players were left with. Although many average lotteries have been in the market since immemorial, they do not satisfy many modern customers’ needs. That said, the startup has chosen to focus on a group of people, particularly those wanting greater diversity and new gambling options. It has won customer satisfaction because it picked a niche.

Besides, going against country-based lotteries sounded too risky as the competition would be fierce. However, there was a hook – while focusing on the broad audience, Lottoland aimed at letting people bet on the results of the international lotteries. The lottery firm did not apply any eligibility criteria, meaning that anyone worldwide could participate in the familiar draws. Thus, the company became a destination for all gambling enthusiasts wanting to try their luck.

Crafting a Unique Value Proposition

Creating a unique value proposition is important to becoming a successful challenger brand. Startups should decide and understand why their goods and services are different and better than competitors' offerings. Besides, they need to explicitly communicate this to potential customers.

A good value proposition has two major characteristics: clarity and attractiveness. It should be clear and memorable and address the target customers' needs and challenges. In addition, a unique value proposition should explain what specific, unique, and outstanding features or benefits the startup's goods and services offer. Moreover, describing why the product is better than current market options is essential.

To devise a unique value proposition, startups should have profound knowledge about their target customers, their needs, and their preferences. There might be several ways to obtain such information: conduct market research, listen to customer feedback, and analyse competitors' strengths and weaknesses. Afterward, developing a distinctive and eye-catching value proposition based on the accumulated data is possible.

Conclusion

Startups need something to help them stand out in a competitive job market. They should build brands that are both practical and emotional. This is the basis of all credibility and trust. And of course, being different is the key to compete against the big sharks.