Why commoditisation is powerful for your branding

Usually there would be multiple subsections within a post that I would write. However, I wanted to focus solely on this one topics since I truly believe that out of any other advertising/branding outcome, commoditisation is the most valuable by far.

What is Commoditisation?

Commoditisation is the process of treating something as a commodity. A commodity is defined as an economic good, usually a resource. The distinction between something that is and is not a commodity is the identification of it being a ‘basic good’. A basic good being something that the general population sees as normal within modern society.

Why is Commoditisation important within branding?

This is where the idea of commoditisation becomes interesting. When a product or service is seen as a commodity it is otherwise being referred to as an equal to any natural human element. For example, oil is a natural commodity. We all know what oil is and how it helps a modern day society. But the companies that are in the oil industry have become as well known as the commodity itself. BP, PetroChina and Shell are all big players that you can’t help think about while talking about oil.

Let’s take another commodity, water. You will most likely automatically think of companies such as Aquafina, SmartWater and Fiji. Once again, the companies that are the biggest players within the bottled water industry are as well known as the commodity itself.

Being as well known as the raw material you are working with is single handedly the most powerful branding tool available. The automatic thought of a consumer will be directly towards your brand. It is like a game of word association and you’re always the first associated word.

How would this impact smaller business?

Its all well and good owning a multibillion pound company that is competing with the top dogs within your industry. You would expect commoditisation to come about then. But how can smaller businesses/brands use this to their advantage and be seen as bigger players within their industry?

I personally think that is always has to start local. You can’t expect a startup to go from zero consumers to national adoption within a year, that’s just ludicrous. The starting point should always be to be the most respected in your local area. Consumers shouldn’t hesitate to purchase your service/product when presented with it. There are thousands of businesses that do operate with this ‘local fame’ and are the big players within their space, but we don’t know of them because obviously they are not local to us.

Spending the first couple years building rapport within your local area and becoming synonymous with being a trustful and respected business is the first step towards this idea of brand commoditisation. This can only come with dedication to your specific product/service and consistently providing excellent services. Whenever you start to get known as “The computer guys” or “The boiler company” rather than your businesses name, you can confidently say that you have achieved the first level of commoditisation.

Overall this idea cannot be achieved without execution. Simply put, commoditisation is the same as being described as the best in your field. When you then start to be referred as the commodity itself there is no advertising method that can achieve the same level of brand awareness and recognition.