Unlike head-to-head positioning, differentiation seeks new markets by identifying and seeking out customers who aren't necessarily interested in what the market typically offers but could be interested in your offerings because of their innovative qualities. 
Yellow Tail wine from Australia differentiated its products by using attractive labels and by providing a low price point for its products. Their strategy was not to compete head-to-head with other wine producers but rather to attract consumers of beer and wine coolers. 
This video shows the positioning of a brand by differentiating your brand.
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Source: Sammy Blindell,


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