Because of its leadership position, the defender owns a strong point in
the mind of the prospect. The best way to improve your position is by
constantly attacking it. In other words, you strengthen your position
by introducing new products or services that obsolete your existing
ones.
IBM is a master of the game. Every so often, IBM introduces a new line
of mainframe computers with significant price/performance advantages
over existing products.
Competition continually struggles trying to catch up. A moving target is harder to hit than a stationary one.
Gillette is another example. Gillette owned the wet-shaving market with
a product called the Blue Blade and subsequently the Super Blue Blade.
The company was stunned when rival Wilkinson Sword beat it to the
market in the early sixties with the stainless blade. Then in 1970
Wilkinson Sword followed with the bonded blade, a metal blade fused to
plastic at the “optimum shaving angle." At that point Gillette got its
act together and started to play a brilliant game of defensive warfare.
Shortly thereafter Gillette counterattacked with Trac II, the world’s
first double-bladed razor. The success of Trac II set the pattern for
future Gillette strategy. “Two blades are better than one," said
Gillette’s advertising.
“Better than one Super Blue Blade," said the company’s customer who
promptly bought the new product instead of the old. (It’s better to
take business away from yourself than have someone else do it for you.)
Six years later, the company introduced Atra, the first adjustable
double-bladed razor. Again, by implication the new product was better
than the Trac II, the nonadjustable two-bladed razor.
Nor did Gillette hesitate to introduce Good News, an inexpensive
disposable razor (with two blades, no less). This was an obvious attack
against Bic, who was preparing to introduce its own disposable razor.
Good News was not good news for Gillette stockholders. The disposable
cost more to make and sold for less than Gillette’s refillable cost
more to make and sold for less than an Atra or Trac II was costing
Gillette money.
But Good News was good marketing strategy. It blocked Bic from running
away with the disposable portion of the market. Furthermore, Bic paid
dearly for its modest share. Trade sources say Bic lost $25 million in
its first 3 years in the disposable razor business.
Gillette continues its relentless strategy of attacking itself.
Recently it introduced Pivot, the first adjustable disposable. This
time, its own Good News product is the target.
Gillette has gradually increased its share of the wet-shaving market. Today it has some 65 percent of the business.
Attacking yourself may sacrifice short-term profits, but it has one
fundamental benefit. It protects market share, the ultimate weapon in
any marketing battle.
The reverse is also true. Any company that hesitates to attack itself
usually loses market share and ultimately market leadership.
This article may be re-printed as long as following resource box is included as it is with out any alteration.
This Marketing Idea is published by www.nuttymarketer.com. Visit us to find more of cheeky gorilla Ideas.
Disclaimer: All information on this site is provided for informational purposes only! By no means is any
information presented herein intended to substitute for the advice provided to you by any health care or other professional
or organization.
