Even Kleenex has to Differentiate

Everyone knows Kleenex; the popular brand name is practically synonymous with facial tissue. However, as reported in today’s Wall Street Journal, even Kleenex has to take steps to differentiate. The recent influx of generic, low-priced tissue products has put the pressure on Kleenex to do something different. Sure, Kleenex has been around for a long time, but in this case, customers aren’t driven by the amount of time the product has been around – especially when they can’t identify real value added between Kleenex brand tissues and lower-priced generic tissues. As a result, Kleenex shifted focus to innovation and added real value to a commoditized product by introducing an anti-viral tissue.

The issue facing Kleenex is essentially the same as an issue facing many financial institutions, especially community banks. Longevity alone does not necessarily translate into a competitive advantage. Many community banks attempt to use their length of time in a community as a way to communicate value added; while this may have worked in the past – it’s becoming less important to the customer and prospective customer, especially with younger generations. Just as Kleenex’s answer to the pressure involved product innovation; bank’s need to look for ways that will differentiate their institutions from the rest, while providing real value added to the customer.