USP stands for unique selling proposition. It sets the business apart from others – its competitors because it sounds the uniqueness, and the distinctiveness of the business can be anything. Therefore a lot of serious thought needs to be given by the entrepreneur while attempting to design a USP: the marketer should avoid of attempting to be known for everything but go for the specific. While promoting the product an advertising agency has limitations of words and space – nobody has time to look at lengthy advertisement so just in few words the uniqueness should be promoted. It’s always better for an organization to find a good USP plank on which it can build its marketing strategies. USP gives the four P’s of marketing mix; Product, Price, Place and Promotion its quintessence.
Do you know that the man who pioneered the concept of USP is Rosser Reeves, who was one of the advertising legends, and he explained the pre-requisites of the USP in detail in his 1961 classic book, ‘’Reality in Advertising’’. He used a USP first time in the Anacin tablet ad. Most people found the ad quite irritating, but it brought great success to Anacin successfully tripling the product’s sales. It is said that the 59-second commercial made more money in seven years than the legendry movie, Gone with the Wind made in twenty-five years!
The expression USP was coined way back in 1940’s. After a lot of research it was found that advertising campaigns become successful when few words or phrases are used in advertising campaigns. The idea of using a campaign is that customers are made aware of the product and they buy it. The product is advertised based on its strengths; and customers buy it only after knowing its benefits. USP helps marketers to differentiate it from other products. USP thus informs customers how the product is different when it is displayed on a crowded shelf. Lack of a strong differentiating characteristic means the new business, product or service has lesser chances to thrive. If there is a strong differentiator, however, the venture has a good chance of being successful.
Look at the USP of Sun Pharma – ’Sun pharma fifth largest & most profitable company in India.’ The USP is explained in realities of the company such as the company has strong presence in the cardiology, psychiatry, neurology, gastroenterology, diabetology segments. It has proved growth in emerging markets with strong marketing & sales force of over 12,000 employees. They have successfully acquired Taro pharma which has further consolidated their position in Indian markets with a strong brand presence in India and US markets.
In today's competitive market, customers keenly check USPs and taglines, place of manufacturing, ingredients, manufacturing dates everything. A business thrives on uniqueness and innovation used. The USP should cut through the clutter which separates the business from others.
The way a firm delivers value can be innovative and unique. It takes a bit of effort and creativity, but it can be a powerful differentiator and a cornerstone of the USP. While it is even clearer how a service business can develop a unique process, a product-based company can as well. It all comes down to how the firm interacts with its clients. Experiential marketing is nothing new at this point. Yet, it still hasn’t been adopted by many companies. Making the process into experiential marketing initiatives is one of the best ways to leverage the concept. After all, the process should be marvelous, although open to a continuous ongoing improvements as well.
The USP of Novartis says it all: “Discover, develop and successfully market innovative products to prevent and cure diseases, to ease suffering and to enhance the quality of life.”Novartis has a global reach in over 140 countries, its core businesses is in pharmaceuticals, vaccines, consumer health, generics and animal health. The company has some of the major mergers and acquisitions to strengthen its product portfolio with employee strength of over 120,000.
Let’s now look at the USP of Cadila Healthcare: Its USP is “An integrated healthcare solutions provider, catering to over 45 therapeutic segments.”The company has its presence in respiratory agents, cardiovascular, haematinics, gastrointestinal, analgesics, anti-infective and antibiotics, anti- diabetics and immunological. It has USFDA approved plant for clinical trials and it is a sole manufacturer in Indian of Streptokinase and Hyaluronic Acid-based products, it caters to over 45 therapeutic areas and has presence in over 90 countries. Cadila has acquired Bio-chem which is major player in anti-infective segment in domestic market the company has restarted the production of Urokinase through partnership with Microbix.
However, it takes lot of thought and hard work to organize USPs; it is an extremely difficult job. And as soon as one company creates a successful USP in a market, many competitors try to copy it. The relevance of an USP has to match the company’s business and operation and its target customers. When an organization has several USPs, it becomes difficult for customers to differentiate between its all USPs.
It may seem obvious to say so but a USP is not a USP when it is irrelevant to the product or when there is no competition. As soon as it is copied by competitors it is no longer unique. For example, say you are the first to offer a money back guarantee – this is a strong USP until competitors losing business to you do the same. And if you cannot deliver what you claim in the USP it is false and can have a serious effect on your business. Another mistake many businesses make is the mistake of attempting to stand for everything when they first get started. They want to do everything well, and they want to be all things to all people. They want to be known for having the highest quality products and the lowest prices. This does not work. A business commits to its customers what it can offer through its USP.
Eli Lilly has a presence in oncology, cardiovascular diseases, diabetes, critical care, neuroscience, men’s health, and musculoskeletal segments. It has capability to create strategic alliances & marketing partnerships with other corporations. Its USP says it all: “Transforming challenges in advances Lilly makes medicines that help people live longer, healthier, more active lives”. The company has a strong marketing ability such as 60 second commercial plot for drug Cialis. It is a research oriented company with well developed in- house R&D capability; a strong presence in over 125 countries and has close to 40,000 employees.
An example away from pharma but apt to prove importance of USP in marketing is what Charles Revlon, founder of Revlon always used to say that he sold hope, not makeup. Remember, USP is not an introductory paragraphs, it is generally a phrase or sentence. It should not be rambling. The more concise it is, the better it sounds and gets better results.
Iodex a pain reliever balm is more than 100 years old. With a USP “A heritage brand with a time tested formulation that provides relief from all kinds of pain”. Historically known as a “black salve”, Iodex contains iodine which has both antiseptic and antibacterial properties essential for wound healing. It’s a heritage brand in India, which is available in every household. In true sense it is a time-tested formulation and of course a heritage brand.
A business should have a sustainable competitive advantage which adds value to its products/service uniqueness; it sets the business apart from the competitors. While setting a USP the business needs to answer some questions: whether the product’s uniqueness in a price leadership; in product differentiation; in packaging; a specific feature; in delivery; in multiple usages. The best USPs directly addresses a precise need experienced by an ideal customer. A great unique selling proposition is short, crisp and emphasizes product’s quality from its competition.
(The author is Professor of Marketing Management and a consultant)