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← Back to IdeasThe Differentiation Crisis: Can Your Brand Still Stand Out?
Imagine your brand, once a beacon, now just another whisper in a deafening crowd. That's not hyperbole; it's the stark reality facing businesses today. Brand differentiation has plummeted to a two-decade low, according to WPP’s Brand Asset Valuator (BAV). It’s a terrifying statistic that means even the most iconic global leaders are losing their distinct voice – 75% of them, in fact, over the last ten years. This isn't just a trend; it's a silent economic drain estimated at a staggering $3 trillion in lost revenue.
At this year's Cannes Lions, Ogilvy’s Global CEO Devika Bulchandani and former Nestlé Global CMO Aude Gandon didn't mince words, tackling this differentiation crisis head-on. In an era where every brand risks becoming indistinguishable, how do you forge an identity that truly resonates? And when every penny is scrutinized, every deliverable demanded yesterday, how do you fight for distinctiveness without breaking the bank or the team?
Beyond Product: The Power of Brand
Gandon emphasized that in a market flooded with comparable quality from private labels and indie brands, a strong brand isn't just important – it's your last line of defense.
"Product is key, but product is not enough anymore," Gandon said, noting that it’s easier than ever for brands to have the same or similar products. “You still need to have an amazing product, because that is what people buy, but you also need to have a very strong brand, and one that is differentiating itself from the competition.”
This demands understanding cultural moments that authentically align with the brand's core, she notes. “You do it first by sticking to who you are as a brand – but then it is how do you bring your legacy and your equity in a way that is fresh and culturally relevant.” She points to how finding those cultural moments that are right for both the brand and the category is “where the magic starts to happen.”
Gandon cited success stories at Nestlé that were “rooted in the brand and rooted also in the product benefit.” Nestlé's KitKat partnership with Formula 1 and Nescafe's collaboration with global influencer Zach King. For KitKat, the brand’s "have a break" brand platform aligned with F1's high-pressure environment. For Nescafe, the brand leaned into online “life hacks,” aligning with a renowned digital magician and filmmaker who “hacked” iced coffee by using Nescafe’s new espresso concentrate. Gandon also referenced Nespresso’s partnership with The Weeknd, leveraging the pop star’s authentic connection to the brand through his Ethiopian heritage.
Attaching a brand to a cultural moment or trend can create short-term buzz, but finding the right avenue to authentically speak to audiences is what fosters deeper connections that can set your brand apart.
“It is not easy. The problem is everybody is looking for what is hot, and consumers see through it very, very quickly when it's not authentic," Gandon said.
Long-Term Brand Building Pays
“Building differentiation is not an instant game. It is a marathon more than a sprint,” Bulchandani observed, pointing to the relentless pressure on marketers for instant results, often leading to an over-reliance on lower-funnel activities. While important, an exclusive focus on this area of the customer journey does nothing to separate a brand from its competitors in the long term.
And in fact, as Gandon underscored, effective brand building drives sustainable growth that will ultimately be reflected across time horizons. “We've done a lot of work and looked at a lot of data which shows that you can also achieve return on investment and grow your sales when you build long-term brand equity," Gandon said, referencing research from IPA and Kantar. “Because of the rise of digital platforms and e-commerce, we have been obsessing about the lower funnel… but actually everything that builds more long-term brand equity, what will really differentiate you for the long-term, has been proven to have an impact on short, mid, and long-term.”
Nestlé has actively shifted its investment strategy, adopting a "60/40" rule: "60% of our investment on brand building, 40% on short term, sales and activation." While not rigid, Gandon emphasized this balance for a company with 150-year-old brands. “Yes, we need to deliver the quarter, but we also need to make sure these brands are still going to be strong, top of mind for the next 20 years.” She also highlighted Nestlé's "fewer, bigger, better" program, reducing supported brands and campaigns to focus on consistency and scale for strong differentiation.
AI’s Role as Facilitator of Differentiation
“We can’t be sitting in Cannes in 2025 and not talk about AI," declared Bulchandani, noting that as AI floods the digital landscape with effortlessly generated content, it presents a terrifying paradox: how do you stand out when the very tools designed for efficiency threaten to drown you in a sea of sameness?
Here's the twist: this isn't a threat to be feared, but a challenge to be embraced. Gandon sees AI as an exhilarating development, one that's forcing marketers back to basics. "I think it's actually pretty exciting," she said, "because it's obliging us to go back to how we've grown up in the industry again, of what are the brand fundamentals? What is your brand equity, what is your framework? And then you can use the tool…to actually unleash your creativity.”
Initially, Gandon admitted, the AI-generated content she encountered felt boring and generic. But the moment the AI was properly calibrated and prompted – when the people that were harnessing it were experts in the brand and its strategy, the output transformed. This isn't about AI replacing creativity; it's about AI demanding a more disciplined, deeply understood brand strategy than ever before. As Bulchandani affirmed, the advent of AI will force brand strategy to be sharper, clearer, and more authentic than ever.
The Enduring Power of Creativity
Ultimately, creativity plays perhaps the key role in differentiation. "Everybody can have the same tool,” Gandon said, referencing how relatively easy it is now to launch a brand and get known thanks to social media. Reach and repetition are more attainable than ever before. That alone won’t drive business anymore.
“Having the right kind of creative big idea, having the right creative powerhouse makes a very, very big difference – and it is the second driver of business after your media investment. The power of your creativity is what is going to drive your business.”
Gandon concluded with advice for agencies: "Make sure that you talk to your client about differentiation, because I don't think we hear about it enough.” In an increasingly high-pressure world where the democratization of AI has the potential to flood the zone with noisy content, a clear, distinct, and authentic brand has become the most important thing a company can have.