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Unique Selling Proposition | Full Form of USP, Types and Example

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What is USP?

A product, service, or brand’s unique and appealing quality or feature is what is referred to as its ‘Unique Selling Proposition’ (USP). Basically, this concept is used in the marketing purpose of the product. It may be determined by various factors such as product characteristics, quality, cost, efficiency, client service, or any other trait that differentiates the product being sold from others on the market. USP stands for ‘Unique Selling Proposition’.


Why USP is Important?

USP is important due to various factors. Some of them are:

  • Differentiation: A strong USP helps a business stand out in crowded markets with plenty of other goods and services of the same category.
  • Customer Attraction: The right customers, those who are explicitly searching for the advantages or attributes highlighted by the USP are drawn in by a clear USP.
  • Justification of Price: A compelling USP can support a higher price. Customers will buy expensive product or service if they believe it offers added value or special benefits.
  • Long-Term Success: Companies with a distinct USP typically have a stronger base for long-term success.
  • Brand Building: A USP helps to develop a brand. Brand identification and equity are strengthened over time when customers come to connect a particular advantage or trait with a brand.

Types of USP that Differentiate a Business

1. Product-Based USP

  • Innovation: Showcasing special characteristics or technological developments that set a product apart from its competitors.
  • Quality: Highlighting excellent design, dependability, or components that provide a higher-quality product.
  • Customisation: Providing a high level of product customisation to meet the needs of specific customers.
  • Performance: Convincing consumers that a product works better, quicker, or more effectively than competing products.
  • Sustainability: Promoting ecologically friendly production techniques or products to consumers who care about the environment.

2. Service-Based USP

  • Exceptional Customer Service: The promise of exceptional customer care, responsiveness, and aid in resolving concerns.
  • Convenience: Easy returns and exchanges, speedy delivery, and ease of use are all examples of convenience.
  • Personalisation: Adapting goods and services to the unique preferences and requirements of each customer.
  • Expertise: Highlighting specific knowledge, abilities, or experience in a given sector or industry.
  • 24/7 Availability: Providing 24/7 access to customer service or other services.

3. Price-Based USP

  • Lowest Price: Assuring the lowest pricing on the market with a focus on customer cost reduction.
  • Price matching: It ensures that clients receive the best bargain by matching or beating competitor’s prices.
  • Rewards and Discounts: Offering loyalty programmes, discounts, or prizes that boost the value or make the product easier to obtain.
  • Bulk Pricing: Discounts for large orders or subscription pricing are two examples of bulk pricing.

Who decides USP?

  • Market Research: Market research is carried out by the marketing team, which is also in charge of examining consumer behavior and looking for potential for difference. In order to properly develop and express the USP, they collaborate closely with other departments.
  • Customer Feedback: For developing a USP, market research and customer feedback are vital sources of data. Insights on what customers value most are available from polls, evaluations, and personal interactions with customers.
  • Brand Consultants or Agencies: Businesses that want assistance in identifying and creating a compelling USP turn to brand consultants or marketing agency.
  • Focus Groups: Companies can set up focus groups to get feedback from a variety of prospective customers and then according to that, the USP can be shaped.
  • Product or Service Development Teams: Teams that develop new products or services can contribute to the USP by identifying special characteristics, innovations, or enhancements that may differentiate their products and services from those of rivals.
  • Sales Team: The sales team has direct interactions with clients and potential clients to learn about their requirements and preferences.

How to develop strong USP?

A systematic strategy and an in-depth knowledge of your company, your target market, and your competitors are necessary for developing a powerful unique selling proposition (USP). The steps to creating a strong USP are listed below:

  • Recognise Your Target Market: Start by identifying and researching your ideal clients- their preferences, problems, and needs.
  • Analyse Your Competitors: Research your rivals to find market gaps and openings and find out what your rivals are selling and how they are presenting themselves.
  • Highlight Benefits: Pay attention to the advantages that your special qualities offer to customers.
  • Keep It Brief and Clear: Your USP needs to be brief and simple for people to understand. Aim for a message that is simple and memorable so that clients can quickly notice it.
  • Test Your USP: Before putting your USP into full effect, run it by a small sample of your target market to see how they respond.
  • Think about Emotional Appeal: Consider the emotional impact your USP can have on your target audience. In marketing, emotional connections can be quite effective.
  • Review and Update Frequently: Your business, the market, and client preferences all subject to change over time. To keep your USP current and powerful, periodically evaluate and update it.

Examples of USP

There are various industries that use USP. Some of them are:

1. Domino’s Pizza’s USP: “You get fresh, hot pizza delivered to your door in 30 minutes or less or it’s free.” – it highlights the efficiency and reliability of pizza delivery, differentiating Domino’s from rivals.

2. FedEx’s USP: “When it absolutely, positively has to be there overnight.” – it focus on assured overnight delivery, which is essential for items that must arrive on time.

3. Amazon Prime’s USP: “Free two-day shipping on millions of items, plus access to streaming of movies, TV shows, and more.” – a complete membership programme that provides convenience through quick shipment and other entertainment perks.

4. Nike’s USP: “Just Do It.” – It’s USP centers on empowering people and encouraging them to act and confidently pursue their goals.

5. Airbnb’s USP: “Belong Anywhere.” – it is about fostering a sense of community and offering unique, customized travel experiences.


USP is an important marketing strategy which helps the companies to grow their brand and attract the customers. A good and strong USP boosts the chances of success of the company. Also, it is important to regularly update and review the USP according to people’s need and choices.

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Last Updated : 12 Sep, 2023
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