Ways to turn a business disadvantage into an advantage


Most markets are in a state of monopolistic competitors. This indicates that one large company controls most of the market, and sets the pace, and also the other businesses in the market have to follow the leader. Numerous companies find themselves at a disadvantage when they're competing against the marketplace leader - the leader controls the sources of supply, has the greatest advertising budget, and often controls the distribution network.

This does not imply the others can't compete - it just means they need to act more like judo wrestlers, and turn the leader's strengths against it.

When Avis automobile hire was founded by Warren Avis in 1946, the company had a total of three vehicles. By 1953, it was the second-largest car hire company in America behind Hertz. Somehow Avis couldn't catch up with Hertz, so in 1962 the business turned an apparent disadvantage to an advantage by adopting the slogan "We're Quantity Two - So We Try Harder."

This slogan is extremely powerful on a number of levels. First, it gives the instant impression that Avis will do more for the consumer than will Hertz. Second, it gives the impression that Hertz, as the marketplace leader, is complacent and resting on its laurels. Third, it appeals to people's sympathy for the underdog. Fourth, and perhaps most importantly, it is easily memorable.

The Avis slogan is one of the best known in the world. Nowadays, the company nonetheless has not caught up with Hertz, however it is very close behind - if Avis ever did catch Hertz, of course, the slogan would no longer apply.

Think about your main disadvantage, compared with the market leader. Think about how that disadvantage can be seen as an advantage. Express the concept in less than ten words. Make it punchy and memorable.

Individuals do not relate to products - they relate to brands. This is a good thing, provided you've a stronger brand than your competitors: but how do you get that stronger brand in the first place? For strong brand read likable brand. If individuals really feel warm toward the brand, they'll in turn feel warm toward the product, which can only be a good thing for instant sales and future loyalty. One efficient way of building likability would be to produce a memorable icon, a symbol of your brand that will stick in people's minds and be entertaining.

Dry batteries have been about for more than 100 years now: the first ones weighed in at more than 3 pounds, and were used to power telephones, but technologies moved on quickly and zinc-carbon batteries became ubiquitous. In the exact same time, prices dropped: zinc-carbon batteries were disposable, and were in fact disposed of regularly.

When alkaline batteries appeared, they were an excellent deal more costly than zinc-carbon batteries (and nonetheless are), so the producers, Duracell, needed a way of demonstrating that the batteries would be cost-effective. Their initial advertising campaign showed a set of electric toy animals that gradually stopped working as their batteries ran down, except of course for the one powered by Duracell copper-top alkaline batteries. This was the Duracell Bunny, a pink toy rabbit banging a drum.

The Duracell Bunny became iconic. Individuals responded well to the "cuddly toy" aspect because of its playfulness, and also the memorable advertisements: more importantly, the key benefit of the product came across very clearly. More recently, Duracell have been able to complete away using the other toys and use only the bunny - it has been seen climbing mountains, canoeing, playing leapfrog, playing soccer, and free running.

The advertising was so successful that Ever Ready brought out their very own bunny to advertise Energizer, but for legal factors these ads have not been shown in Europe or Australia. Think about your distinctive selling proposition - what does your product have that others do not? Attempt to produce a playful icon. Use your icon in various contexts so that it remains fresh.

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Note: This article was sent to us by: Craig Morris at 01202011

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