As a commodity producer, your company needs to have a solid strategy to show stability through market turmoil to appeal to investors and customers.

Product Differentiation

A key ingredient in your strategy should be product differentiation but attaining this may not be obvious when selling a commodity like a metal or a common food ingredient. How should product differentiation happen? A company can “wrap” its product to source and supply it in a way that makes it more unique. It’s best to differentiate using product marketing techniques, rather than through price competition, or else expect a race to the bottom pricewise.

Brand Strategy

A brand is a promise a company makes to its stakeholders. Great brands have built up trust over the years, and trust goes a long way.

New companies don’t have a long track record of success and the trust that brings, so how can they compete? They can position their commodity products using product marketing differentiators while building their brand reputation.

Further ways to differentiate commodities, some of which are courtesy of Marshall Strategy, include:

Management/Strategy

• Risk – eliminate or reduce your customers’ potential risks.

• Sustainability – appeals to customers, employees, and communities.

• Ingredient – create a proprietary ingredient or concept available only in your commodity.

• Segment – your market, and tailor your marketing to the most profitable segments.

• Safety – a commitment to the health and safety of your customers’ workforce.

Delivery

• Experience – provide a superior purchase or usage experience: easier, faster, more flexible.

• High availability and inventory management – offer inventory management or convenience.

• Channel partners – have strong distributors and vendors that create a competitive advantage.

• Bundle – or unbundle, your products and services.

Value-add

• Rewards – consider a rewards program to encourage loyalty.

• Financing – develop customer financing options, appeals and incentives.

• Consulting – become an expert in your customers’ industry and become a valued authority.

• Country of origin – customers may prefer local products based on convenience.

Branding

• Packaging – use packaging for convenience, or badging, to stand behind your commodity.

• Facilities – showcase impressive facilities, operations, and equipment as sales tools.

• Marketing – create appealing marketing materials and concepts.