Growing a side hustle means finding out how to provide value to people in a unique way, and to do that you need to understand what other businesses are doing right, and where they are failing.
A USP, or Unique Selling Proposition, is a marketing term used to describe the unique benefit or advantage a product or service has over its competitors. It is the thing that sets a product or service apart from others in the same category and is used to attract and retain customers.
A USP can be a specific feature, a quality, a price, a warranty, or anything else that sets the product or service apart from others in the market.
That’s why in this newsletter, we’ll unpack how to analyze your competition so that you can develop your own USP and take your side hustle to the next level!
This week’s newsletter brings you:
- Strategies. We’ll explore the benefits of analyzing your competition when it comes to creating your own USP, take a look at a few tips to make your products more attractive, discuss the difference between Red and Blue Ocean strategies, and discuss a few examples of great business USPs.
- Tool of the Week. Creating a USP for your side hustle can be difficult. Make the process easier by using Praxie’s USP Analysis template.
Strategies
Now, let’s see how analyzing your competition can help you build a stronger USP for your side hustle.
Using your competitors to your advantage
Understanding your business, as well as your direct competitors, is crucial to creating a Unique Selling Proposition (USP), and if you want to develop a killer USP, you must ask yourself:
- What makes my offering unique?
- What is the purpose of my product?
- How does it solve a problem or fill a need?
- What makes my product different from similar ones?
But it takes more than just asking yourself these questions, you must also take a look at the competition.
A competitive analysis will help you better understand what you bring to the table, in comparison to your competitors, and how you can make your business more effective by communicating your USP to your target audience.
Analyzing the strengths and weaknesses of your competitors involves evaluating their strategies in relation to your own. This allows you to identify areas where your own strategies may be lacking and to develop a competitive advantage.
By understanding your competitors’ strengths and weaknesses, you can make informed decisions about your own strategy and position yourself more effectively in the market.
The purpose of competitive analyses is to find out what your competitors are up to and how they are communicating their message to consumers. By understanding how competitors highlight their strengths, you can figure out how to highlight what’s unique about your own side hustle.
Using your competitors’ online presence as a starting point can help you:
- Consider their weaknesses as opportunities for your own improvement.
- Discover how they cultivate customer loyalty and engagement.
- Take steps to improve your own branding, messaging, and marketing strategies.
To have a successful side hustle, you have to take something that already exists and is successful and add your own spin to make it even better.
Resources:
How to Find Inspiration from Your Competitors by Godaddy
How Competitive Analysis Can Help You Create a Killer USP
Making your product more attractive
Your side hustle will be able to catch the attention of your target market when you communicate your USP clearly and concisely, along with creating marketing materials that further convey the value consumers will get from your product or service. As a result, you will be able to build a large and loyal customer base.
But what about making the product itself more attractive? How do you turn the steps above into results through a simple product offering?
Here are some simple strategies worth considering:
Take great pictures
Product photography should always be a top priority when you offer physical products. Having a professional photographer on hand can be beneficial in some instances, but it isn’t the only factor that determines success. Here are some tips to get you started:
- Ensure that your photos reflect the real-life appearance of the product.
- Include at least 3-4 images for customers to scroll through, including one main image with the best angle of your product.
Describe your work with soul
A customer’s first impression is the photo, but it won’t be their last. It’s important to use the right words when describing your products. Providing customers with a product overview and key features should be the minimum requirement for a product description. However, your description should go above and beyond.
When writing a product description, keep these tips in mind:
- Don’t just say your product is the best – explain why.
- Communicate with your customers in their own language. Don’t use formal language if you’re selling to a young audience
- Don’t forget to use words that stimulate the senses: describe the smell, shape, texture, or the color of your product.
Teach your customers about your product
When people are uncertain about a product’s suitability or how it can be used, they won’t purchase it. In order for your potential customers to see the value of your product, you must first teach them how it’s used.
Products with complex features are more difficult to market, but they give you an opportunity to reach out to your audience in new ways. Your product description should include step-by-step instructions, as well as video tutorials. You should do everything you can to make your clients feel confident and empowered when using your products.
Resources:
6 Ways to Make Your Products More Attractive to Potential Customers by Know Online Advertising
How to Increase the Attractiveness of Your Product or Service by Startups
Red ocean vs blue ocean marketing strategies
Red ocean and blue ocean are two different marketing strategies. They were first introduced in the book “Blue Ocean Strategy” written by W. Chan Kim and Renée Mauborgne.
The book was first published in 2005 and has since become a bestselling business strategy book, providing a framework for how to create and capture new market spaces. The book also provides case studies and examples of companies that have successfully implemented blue ocean strategies.
Red ocean marketing strategy refers to competing in an existing market, where there are many existing competitors and a limited market share. The name “red ocean” comes from the idea that the market is crowded and bloodied, with companies fighting over a limited pool of customers. In this strategy, companies focus on differentiating themselves from the competition, often through price wars and aggressive marketing campaigns.
On the other hand, blue ocean marketing strategy refers to creating a new market or industry, where there are few or no competitors. The name “blue ocean” comes from the idea of a vast, unexplored market that is not yet crowded with competitors. In this strategy, companies focus on creating new demand and developing new market spaces, rather than competing in existing markets. This approach usually involves creating unique products or services that appeal to new or underserved groups of customers.
In short, red ocean strategy is about competing in a crowded and established market, while blue ocean strategy is about creating a new market space and differentiating your product or service.
The key differences between red ocean and blue ocean strategies
If you still aren’t clear about how both ocean strategies differ from one another, take a look at their different approaches to these key business aspects:
Going for the existing market vs focusing on new terrain
Red ocean strategies don’t push beyond the visible boundaries of the market, while the Blue ocean strategy seeks to create markets where none exist. As an example, Canon created a new market for small desktop printers focusing on actual users rather than corporate buyers.
Winning over your competition vs rendering them irrelevant
Red ocean strategy is about beating the competition with aggressive marketing, lower pricing, and excellent user experiences, as demonstrated by Amazon’s jaw-dropping success.
In a blue ocean strategy, alternative products and customers are created. In the case of Uber, it did not create a new product, but it transformed how the cab industry works. By eliminating the pain points of traditional taxis, it converted non-cab users into customers.
Resources:
Red Ocean Vs Blue Ocean Strategy by Blue Ocean Strategy
Examples of great business USPs
Now that we’ve established how looking at your competitors can help you build a strong USP, and the different types of strategies you can adopt when it comes to highlighting your product, let’s take a look at some excellent real-world examples of killer USPs.
Full Control for SaaS Payments – Stripe
“Payments infrastructure for the internet.”
Although it competes with PayPal, Stripe stands out in its own right. In what way? As a result of going after developers. Businesses can accept payments from their customers through Stripe’s online payment platform.
Instead of providing a simple payment gateway like PayPal, Stripe offers a complete infrastructure for payments. It provides developers with everything they need to manage online payments.
Making a Bold Claim – Death Wish Coffee
“The World’s Strongest Coffee”
Death Wish Coffee’s unique selling proposition (USP) is that it is the strongest coffee in the world, with a higher caffeine content than most other coffee brands. The company prides itself on using only the highest quality, Arabica and Robusta beans, which are carefully selected, and roasted to perfection to create a bold, full-bodied flavor with a smooth finish.
Death Wish Coffee is marketed to coffee drinkers who are looking for a strong, high-caffeine coffee that can give them an extra boost of energy to start their day or help them power through their afternoon.
Trust and Social Proof – HelloFresh
“America’s Most Popular Meal Kit”
The USP of HelloFresh establishes them as the best at what they do. As the most popular meal kit in America, HelloFresh is shown as trustworthy and validated. In addition, it creates FOMO: this is a trend you won’t want to miss.
HelloFresh’s popularity is explained right above that statement. You will save a lot of time, money, and stress by using it, which are three main reasons why you would buy a meal kit.
You shouldn’t be afraid to go bold with your USP if you are the best at what you do and can effectively communicate it.
Driving Home their Effectiveness – FedEx
“When it absolutely, positively has to be there overnight”
This strong unique selling proposition was used by FedEx from 1978 to 1983. It has been taught in business schools ever since.
FedEx is all about getting packages from one place to another as quickly and reliably as possible. This is clearly stated in their USP.
“…absolutely, positively…” is repeated subtly to emphasize FedEx’s understanding of how important overnight shipping is to their customers. The promise is that they will deliver.
Resources:
What Is a Unique Selling Proposition? With 15 USP Examples (2022) by Optimonk
Tool of the Week
Praxie USP Analysis Template offers an online USP analysis service that can help you identify your unique selling proposition and gain a competitive edge in the market.
Their service is designed to be easy to use and accessible to any business, regardless of size or industry. They start by analyzing your competitors and their strategies, then they evaluate your own strategies and identify areas where you have a unique advantage or can create one.
The result is a clear and actionable plan for how you can differentiate yourself from the competition and attract more customers. With Praxie’s online USP analysis, you’ll have the insights you need to make strategic decisions and grow your side hustle.
