If you think T-Mobile is differentiated from AT&T, Airstream is differentiated from Winnebago, Apple from Dell, Volvo from Lexus, or Progressive from State Farm, think again.
Yes, T-Mobile is pink, Airstream is vintage, Apple sleek, Volvo safe, and Progressive has Flo… but these are merely distinctive (and most often intangible) branded characteristics of otherwise completely comparable, if not exchangeable products and services.
A quick look behind the scenes of any parent company and its subsidiaries can illustrate how brands are not essentially differentiated, but rather distinctive. For example, one of Volkswagen’s most prolific group platforms is simultaneously used in the Audi A3, VW Golf, Skoda Octavia, SEAT León and other brands and models.
Large conglomerates will always create economies of scale by leveraging the same chassis for multiple brands and products, whether these are shampoos, insurance packages, commerce engines, or cars. Consumers will choose what they “like” most. But (maybe with the exception of price) that choice is rarely ever driven by a specific, tangible product differentiator.
Brand choice is most often simply driven by brand availability, context, and sometimes also by intangible brand associations.
