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Crafting Your Positioning: Understanding UVP vs. USP in Marketing Strategy

The Most Important Part of Your Marketing Strategy is to Craft Your Positioning

And it is one of the main challenges for startup founders—and everyone else, too.

I will focus on the conceptual differences and apply them to examples in this post.


Why Will They Choose Your Solution Among Any Others in the Market?

When positioning your brand, you need to differentiate between:

  • UVP (Unique Value Proposition)
  • USP (Unique Selling Proposition)

What’s the Difference?


First of All, Let’s Differentiate and Simplify It to the Maximum So We Can Fix It in Our Heads

UVP [Unique Value Proposition]

The holistic value of choosing both your brand and solution over others in the market.

USP [Unique Selling Proposition]

A specific reason to choose your solution over others in the market.

So we can differentiate both based on:


Scope

  • UVP: Encompasses the overall value proposition, including both tangible and intangible benefits.
  • USP: Focuses more on a specific feature or benefit that distinguishes a product or service from competitors.

Emphasis

  • UVP: Emphasizes the holistic value offered by a brand, considering various aspects such as quality, experience, and customer satisfaction.
  • USP: Highlights a singular, compelling reason why customers should choose a particular product or service.

Application

  • UVP: It guides the overall branding, messaging, and customer experience strategies.
  • USP: It usually drives specific marketing campaigns or product positioning efforts.

Long-Term vs Short-Term

USPs are often short-lived aspects, as they are specific differentiation points that competitors can copy at some point without much effort.

If you can build a real UVP, you will be enjoying a differentiated ecosystem that has been developed over time and is highly difficult to copy.

They complement each other, leveraging long-term and mid or short-term differentiation.

You can push while building that long-term differentiation, which is your UVP with more operational USPs, to reinforce your tactics.


Your Positioning Needs to Be Reflected in Every Corner of Your Startup

It is not just a marketing thing you can use to build your brand tagline.

Combine both UVP and USPs in your messaging house.


-> Your UVP Needs to Be Built to Last, So You Need to Build It Thinking About How Defendable It Is in the Long Term.

So, I recommend working more on a holistic approach. Look at the big picture.

Best Way to Do This?

Think of assets that can be built over time without requiring intensive efforts or massive investment (which a startup lacks) but that require maturation.

This way, it will be hard to replicate if it is not by dedicating a long time.


-> On the Other Hand, Your USP Can Catch Instant Attention and Boost Reach.

Think about something surprising and something that the big players won’t be able to offer as that won’t fit their revenue standards.

The real truth about USPs is that they are usually not so hard to copy by anyone else, but you need to choose them strategically to be the one who has the right to play because they naturally align with your UVP, and you are the first one to offer them.


Don’t Get Frustrated About Crafting Your UVP

You won’t get it built from day one.

When you identify and start taking action to make it real, you will realize that it is a long-term investment that will grow and maximize the value you provide as time passes.

The goal is to build something big, different, and difficult to copy, regardless of the amount of money anybody else can put on the table. That is why your startup UVP will contain many intangible assets.


You Need to Own a Space in the Customer’s Mind

And it is impossible to do so if you don’t take the time to think strategically.

And what is the immediate implication of being strategic? -> Long-term thinking.

You need to keep your hands on the wheel while your sight is far away on the road.

I don’t know anybody who did something great and got to make great changes without a strategic approach.


Good Things Take Time

I know we all rush. We live rushing, but there are things that inevitably take time.

Good things take time.

You have 2 options:

  • Stop for a moment and dedicate time to this, or keep rushing and doing random things you can activate in a couple of days.
  • And then, someone else will come and decide to stop for a moment, and they will leave you behind, running and rushing with your permanent inconsistency.

And what is the immediate implication of being strategic? -> Long-term thinking.

You need to keep your hands on the wheel while your sight is far away on the road.

That is the only way to be a good driver.


Be Authentic

Do you know those brands that sell whatever it isn’t even worthwhile to mention and suddenly start planting a tree for each sale?

Or donate 10% to children in need?

People can notice that from miles away.

I am not saying that it is not a good thing for everyone to do, but it is so false that people can tell it.

What is the story behind that? I can tell you, and it has nothing to do with impact-driven decisions.

People can notice that from miles away.


That Is a Clear Competitive Edge for a Startup

You start from zero and have the right to start a business because you genuinely want to change things for the better.

Don’t listen to those who say customers don’t care about that.

That is nonsense. I do care, and many others do care.

Look for them and make them part of a great thing; make them your ambassadors.

An impact-driven founder didn’t come here to do easy things.


Be Radical, No Half-Hearted Actions

If you decide to do something, put all your heart in it.

Who isn’t appealed to by a passionate spirit?

If you do so, people will follow. I can guarantee.

We live in a world of greys and “dependings”.

But if you want to get followers, you need to take the risk of positioning yourself.

Be different, and embrace your differences.

I know it’s hard, and we don’t always see things in black or white,

but that is the challenge we need to face.

Memorability doesn’t come from average opinions or actions; it comes from the extremes.

So think out of the box and take risks.


Combining UVP and USP: Real-World Examples

Finally, to better understand this, let’s examine how combining a UVP and different USPs builds sustainable long-term differentiation while addressing specific challenges that generate instant customer value.


Thrive Market

Long-term UVP:

Thrive Market works its long-term positioning by offering an affordable, sustainable shopping experience and making healthy, organic, and eco-friendly products accessible to everyone. With a strong focus on social and environmental impact, the company pioneers ethical e-commerce while empowering conscious consumers to live a healthier, more sustainable lifestyle.

USPs:

  1. Membership-Driven Affordability: Thrive Market provides discounted prices (up to 30% off retail) on high-quality, organic products made accessible through a subscription model. This pricing strategy supports budget-conscious consumers without compromising on quality.
  2. Social Impact Membership: For every membership purchased, Thrive Market donates a membership to a low-income family, teacher, or veteran, ensuring that healthy living is within reach for underserved communities.

Too Good To Go

Long-term UVP:

Too Good To Go has become the leader in the fight against food waste by empowering individuals and businesses to save unsold food. They offer consumers a simple way to make an impact on the environment while benefiting from reduced-cost meals. They are driving a global movement to combat food waste and have created a whole ecosystem, helping cities achieve sustainability goals while offering economic value.

USPs:

  1. Affordable Access to Surplus Food: They connect businesses with end customers, offering a low-cost, high-impact solution. They provide affordable access to surplus food from restaurants, bakeries, and grocery stores that would otherwise go to waste, delivering value both financially and environmentally.
  2. Global Presence, Local Action: With operations across many countries, Too Good To Go connects local businesses with eco-conscious consumers, scaling the food waste movement globally while fostering local economic and environmental benefits.

Patagonia

Long-term UVP:

Patagonia’s long-term UVP is built on its commitment to environmental stewardship, pioneering sustainable and ethical business practices. They have become an example for others to do business differently. As a leader in conscious capitalism, Patagonia aims to protect the planet while offering consumers high-performance outdoor apparel that aligns with their environmental values. Their ethos drives a deeper customer connection rooted in purpose beyond profit.

USPs:

  1. Environmental Activism and Transparency: Patagonia donates 1% of its sales to environmental causes and actively engages in global environmental campaigns, allowing customers to participate in climate activism through their purchases. Their transparency in sourcing and production has set industry standards for sustainable manufacturing.
  2. Durability and Repairability: Patagonia’s products are designed for longevity, and they encourage customers to repair rather than replace, offering repair services through their Worn Wear program. This focus on product durability fosters customer loyalty and reduces consumer waste.

By understanding and implementing both UVP and USP in your marketing strategy, you can create a powerful positioning that resonates with your audience and stands the test of time.

 

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