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30 TURN A DISADVANTAGE
       TO AN ADVANTAGE

Most markets are in a state of monopolistic competition. This
means that one large company controls most of the market, and
sets the pace, and the other companies in the market have to follow
the leader. Many companies find themselves at a disadvantage when
they are competing against the market leader—the leader controls
the sources of supply, has the biggest advertising budget, and often
controls the distribution network.

This doesn’t mean the others can’t compete—it just means they
need to act more like judo wrestlers, and turn the leader’s strengths
against it.

The idea

When Avis car hire was founded by Warren Avis in 1946, the
company had a total of three cars. 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 company turned an apparent
disadvantage to an advantage by adopting the slogan “We’re Number
Two—So We Try Harder.”

This slogan is extremely powerful on a number of levels. First,
it gives the immediate impression that Avis will do more for the
customer than will Hertz. Second, it gives the impression that
Hertz, as the market 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 still has not caught up with Hertz, but it is very close

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