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CHAPTER THREE
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REPOSITIONING THE COMPETITION
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you read in the pro-
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logue, the original concept behind repositioning was hanging a negative on your competitor as a way to set up a positive. In recent times, you ve been seeing more of this as companies battle for scarce consumer dollars amid the recession. Kodak, a film company, contrasts its ink-jet printers with those from unnamed big printer companies that cost a lot of money. The positive for Kodak is being affordable. It even sends people to a Web site to calculate how much money they have lost by owning another brand. Apple has hung nerdy on PCs. Its positive is Apple s coolness. (More on this in 8.) Similarly, McDonald s has been trying to hang the Snobby coffee label on Starbucks as it goes out to promote its lattes and cappuccinos. It even has a Web
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site called Unsnobbycoffee.com where it assures customers that they will not need to learn a second language to order drinks.
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Take Care When Attacking
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Sometimes no one in a category is a winner.
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John Zhang, a Wharton marketing professor, has found that combative ads the sort of comparative spots that beer makers, particularly Anheuser-Busch and Miller, are famed for may backfire. Instead of pulling consumers to an advertiser, they may just make people indifferent to all offerings in a product category. And that, in turn, can lead to lower profits for everyone as businesses cut prices to lure these buyers.*
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When you go forth to attack your competitor, beware of getting attacked in return. Campbell s, for example, launched a campaign last year for a new line of readymade soups. These ads asserted that a rival, Progresso, used monosodium glutamate (MSG). In the end, both brands suffered. Progresso responded with an ad saying that Campbell s also used MSG.
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* knowledge.wharton.upenn.edu/article.cfm articleid=1496; accessed June 14, 2006.
REpositioning
Many years ago Scope hung bad taste on Listerine by claiming that a user would end up with medicine breath. That did set up the good tasting idea for Scope, but things did not go as planned. Listerine retaliated with the law of candor and the concept, The taste you hate twice a day. The point it made: with a taste that bad, it must kill a lot of germs. Point and counterpoint.
Finding a Weakness
Repositioning a competitor often comes down to finding a weakness in the leader s strength and attacking at that point. That s not a misprint. We mean find a weakness in the leader s strength, not find the leader s weakness. Sometimes leaders have weak points that are just weak points and not an inherent part of their strength. They may have overlooked such a point, considered it unpleasant, or forgotten about it. But there is another kind of weakness, a weakness that grows out of strength. As the Avis ads used to say, Rent from Avis. The line at our counter is shorter. It s hard to see how Hertz could counter this repositioning strategy. This is a weakness that s inherent in Hertz s position as the largest rent-acar company, as it is for most leaders.
REPOSITIONING THE COMPETITION
The same kind of thinking can be used against any big, ubiquitous brand. How would you go against Campbell s soup, for example Forget taste; forget price. As a matter of fact, forget everything that s inside the can and concentrate on the can itself. That s where Campbell s is vulnerable. Cans rust. But Campbell s has hundreds of millions of dollars worth of can-making equipment that it can t walk away from very easily. However, such limitations wouldn t affect a new competitor, which could try plastic, glass, or aseptic packaging then play kick the can with Campbell s. Don t expect any company to pick up on these concepts soon. Good competitive repositioning ideas are extremely difficult to sell because they are negative in nature. They go against the positive thinking grain of most management people.
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