Professional Documents
Culture Documents
By
Al Ries and Jack Trout
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Introduction
The best approach in our supersaturated society is the oversimplified message. The medium may
not be the message anymore, but the medium acts as a filter for our message. A persons mind
can only take so much information, it blocks out everything that is not important or relevant.
America consumes 57% of the worlds advertising, more than any other nation on earth.
Each year some 30,000 books are published in the United States.
American newspapers print 10 million tons of newsprint every year.
The average American family watches 7 hours of television everyday.
An 8-ounce package of Total breakfast cereal contains 1268 words of copy on the box.
93% of consumers recognize Mr. Clean even if he hasnt been on TV in 10 years
5,000 new products are introduced into the American market each year
Television, radio, newspapers, posters, billboards, magazines, subways, buses, trucks, and the
Internet all carry advertising messages and assault the consumer everyday.
Can the average person digest all this information? Of course not, thats why positioning is so
important.
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reputation and image were more important than its product. Those who followed just increased
the noise levels and once again the advertising world was saturated with the same slogans. Then
the Positioning era brought forth the battle to find a way into the readers mind. The simple
message became the tool. Becks beer effectively positioned itself against Lowenbrau with the
simple positioning statement of Youve tasted the German beer thats the most popular in
America. Now taste the German beer thats the most popular in Germany. Sales grew and
Lowenbrau gave up and became a domestic brand.
6 Positioning of a leader
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You do not need to state the obvious Were No.1, instead simply promote the general
category of the product. IBMs advertising ignores the competition and emphasizes the
value of computers in general, all types, not just theirs.
The first always occupies a special place in the mind. (Coke is the standard by which all
other colas are judged. Everything else is an imitation, while Coke is the real thing.)
Cover all bets. General Motors spent $50 million to buy the rights to the Wankel engine;
protecting itself against any possible moves by Ford or Chrysler to acquire the license.
Buy the rights to a new development. Never assume you cant be toppled if the
competition buys it.
Acknowledge that the power of the organization comes from the power of its product in
the mind of the people.
Covering with multibrands, like Procter & Gamble, insures your leadership position. Ivory
is a brand of soap thats been selling for 99 years. P&G did not introduce an Ivory
detergent bar. Instead they introduced Tide. Each P&G product has its own identity: Joy,
Head & Shoulders, Sure, Bounty, Pampers, Comet, Charmin, Duncan Hines. The multibrand strategy is actually a single position strategy.
See the new product or service as an opportunity, not as competition. The mistake of
New York Central Railroad was not opening an airline division when it had the chance to
be first. Today American Airlines is flying high, and New York Central (now Penn Central)
no longer has its former blue-chip glory.
Cover with a broader name. For example, how Eastman became Eastman Kodak, and
then later, Kodak. Direct Mail Association became Direct Mail-Marketing Association in
recognition of the fact that mail was only one of the ways for a company to do direct
marketing. They later changed their name to Direct Marketing Association. Broadening a
name allows for smooth transitions in the minds of people over the years.
Leaders can also benefit from broadening the range of applications for the product. Arm
& Hammer promoted the use of baking soda in the refrigerator
7 Positioning of a follower
What works for a leader may not necessarily work for a follower. When a follower copies a leader,
its not covering at all. It is doing a me-too response. Most products fail because the emphasis is
on better instead of speed. How do you position a follower then?
Cherchez le creneau
Look for the hole and then fill it. This French marketing expression is a perfect strategy as
against the American attitude of positive thinking, bigger and better. If you want to be a
Columbus, then head west if everyone else is going east.
Volkswagens creneau was size. Think small. Two simple words captured the
prospects mind and made the beetle the most popular small car of its time.
The high-price creneau worked for Michelob, Piaget, and Orville Redenbacher. Its a
creneau that doesnt necessarily belong to luxury goods. To succeed in the high-price
creneau, be the first to establish the high-price position, use a valid product story, and put
the product in a category where consumers are receptive to a high-priced brand. People
are willing to shell out more money if they believe they are getting quality goods.
The opposite strategy can work too. Low-price creneaus are occupied by no name or
generic type brands.
Marlboro and Virginia Slims effectively used the sex creneau. Masculinity or femininity
can sell. Use a masculine name to sell a feminine product. This is the sex paradox as the
name Charlie did for the biggest-selling womens perfume.
Age-specific creneaus, i.e. Geritol tonic for older consumers
Time-specific creneaus, i.e. night creams
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Dont fill the hole in the factory, but in the mind. Dow Jones mistake was coming out with The
National Observer. Because they published The Wall Street Journal 5 days a week, they
assumed they could fill the factory creneau by printing a weekly paper. But the minds of
prospects were already subscribed to Time and Newsweek. They didnt need a weekly paper.
Dont fall into the technology trap. Advertising is not a debate. Its all about seduction. Dont try to
seduce people with your new technology or laboratory breakthrough if there is no creneau in the
mind to fill it with.
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Negative names can be positive. Take soy butter. It sounds healthier because of the
plant versus animal connotation. Black invokes pride, as against Negro or colored,
which connotes second-class citizenship.
Would you vote for a Hubert Nixon? Most American presidents have good solid,
trustworthy, dependable names. Franklin, John, William.
When too many companies are taking the same names, stick to the product name and
make it yours, or run your advertising copy in such a way that what youre selling is
crystal clear to the audience. Owens-Corning Fiberglas could easily be confused with
Owens-Illinois and Corning Glass Works. Their ad copy reads, Owens-Corning is
Fiberglas, but its easier to just change the name to Fiberglas. Confuse people at your
own risk.
A name change can work wonders for you. Companies are afraid to change their names,
no matter how bad, because they think they have too much equity in them. They fear
their customers wont like it. These fears are unfounded. There is only negative equity in
a bad name. When a name is good, things tend to get better, i.e. Standard Oil of New
Jersey changed its name to Exxon Corporation.
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Instead of using inside-out thinking, think outside-in. It may seem logical to introduce Dial
deodorant after the success of Dial soap, but Dial has a very small share of the deodorant
market. Extending the product line doesnt necessarily spell success.
Outside-in thinking looks at the point of view of the prospect. If your brand can achieve the
success of being the generic name for the product, this promotes the category, as in Formica,
Kleenex, or Band-Aid. A consumer should put your brand name on her shopping list.
JC Penney batteries are a result of inside-out thinking. It may be a successful retailer, but their
name says nothing about batteries to the prospect. DieHard battery from Sears, on the other
hand, sits at the top rung of the battery product ladder.
To you and me, Coke is a drink. To folks in Atlanta, its an institution and a great place to work.
Bayer is aspirin. Customers do not easily relate to a Bayer non-aspirin pain reliever. The Bayer
share of the analgesic market keeps falling, as expected.
Tasters Choice cleverly advertised its freeze-dried coffee, saying it Tastes like ground roast.
Maxwell House actually invented the freeze-dried instant coffee. Although they were first, the
company made the mistake of advertising the product as just that, freeze-dried instant. Tasters
Choice from Nestle outsells Maxim from Maxwell House, 2 to 1. The line extension name Maxim
didnt work for Maxwell House at all.
Reverse line extension works if you look at Johnsons Baby Shampoo. Best for baby, best for
you. It is a leading brand of baby shampoo, and the only brand promoted as an adult shampoo
as well. Had Johnsons line-extended the product and introduced Johnsons Adult Shampoo, the
product would not have been nearly as successful.
Expected volume. Potential winners should not bear the house name. Small-volume
products should.
Competition. In a vacuum, the brand should not bear the house name. In a crowded
field, it should.
Advertising support. Big-budget brands should not bear the house name. Small-budget
brands should.
Significance. Breakthrough products should not bear the house name. Commodity
products such as chemicals should.
Distribution. Off-the-shelf items should not bear the house name. Items sold by sales
reps should.
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Aside from people, another common corporate positioning theme is diversification. But
diversification is not the answer. General Electric is known as the worlds largest electrical
manufacturer. Not as a diversified maker of industrial, transportation, chemical, and appliance
products. The positioning concept becomes so broad it is almost meaningless.
Xerox is a $9 billion company with more than 100,000 employees. Today Xerox means copiers.
Tomorrow, Xerox could use lasography to create a broader mental position. Using a new
technology for printing, scanning, and storing messages with laser beams and optical fibers
works with their copier-based business. Its an opportunity for Xerox to bring in something new to
business. It connects with the technology of copiers. It takes advantage of Xeroxs position and
broadens it to include the next generation of products.
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The solution to a positioning problem is usually found in the prospects mind, not in the product. A
candy bar just doesnt last very long. A kid can eat up a 50-cent Hershey bar in 2.3 seconds flat.
The answer: Position Milk Duds as Americas long-lasting alternative to the candy bar. Because
Milk Duds come in boxes of 15 individual slow-eating chocolate-covered caramels, they have
been so popular at the movie theatres.
A 30-second television commercial established this position:
Once there was a kid who had a big mouth(A kid is standing next to an enormous
mouth)
That loved candy bars. (The kid is shoveling candy bars one after another into the
mouth)
But they didnt last very long. (The kid runs out of candy bars and the mouth gets
upset)
Then he discovered chocalaty caramel Milk Duds. (The kid holds up the Milk Duds, and
the mouth starts to lick its chops)
The mouth loved the Milk Duds because they last a long time. (The kid rolls the Milk
Duds one by one up the mouths tongue)
(Then the kid and the mouth sing a duet together, which is the campaign song) When a
candy bar is only a memory, youll still be eating your Milk Duds.
Get your mouth some Milk Duds. (Big smiles on both the kid and the mouth)
The television commercial sold more Milk Duds than all the advertising in the companys history.
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The reason to position United Jersey against large banks is because these big banks are the
ones in the minds of the prospects. The disadvantage of large size is slow service. The
positioning strategy for United Jersey was the fast-moving bank. Two key aspects were:
Exploit the weakness of big New York banks, their slow reaction time.
Encourage United Jersey management to make sure the banks performance matches
the advertising promise.
Through decentralized decision-making, where big loans can be approved quickly, cross training
of people in different services, commitment to electronic ATM networks, speedy lock box service,
FACT (fast authorization of cashless transactions) terminals, responsiveness, and central location
- these commitments would match up to the advertising promise.
Humorous vignettes showing slow motion employees of Lethargic National Bank as against
United Jersey which values your time as much as your money. Time is money desk signs
were given to all United Jersey bank officers, a reminder not to keep customers waiting.
One year after the program, United Jersey announced earnings of $30 million, a 26% increase
over the previous year.
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To implement the new position, pulpit training, improving sermons and learning to be better
speakers was necessary. An introductory film entitled Return to the Beginning was proposed. To
this day, the management of the Church is not convinced with such a simple solution. The Pope
is in the process of convening another synod to evaluate the results of Vatican II, to resolve the
confusion in the last 20 years. While they convene, the gulf widens between liberal and
conservative Catholics.
Find one specific idea to hang your hat on. Dont be afraid to make some mistakes along
the way. Eddie Arcaro, perhaps the greatest jockey who ever rode a horse, had 250
straight losers before he rode his first winner.
Make sure your name is right. Marion Morrison changed his feminine-sounding name to
John Wayne. Issur Danielovitch was changed to Kirk Douglas. Avoid using initials in
memos. It is part of the no-name trap we identified earlier. Avoid the line-extension trap
too. Putting a junior on your sons name is not doing him a favor. He deserves a separate
identity. Liza Minelli is a bigger star than her mother, Judy Garland. As Liza Garland she
would have started with a handicap.
Find a horse to ride. Is your company positioned for growth? No matter how brilliant you
are it never pays to cast your lot with a loser. If your company is going nowhere, get
yourself a new one.
The second horse to ride is your boss. Always try to work for the smartest, brightest,
most competent person you can find. If your boss is going places, chances are good you
are too.
The third horse to ride is a friend. The more business friends you make outside of your
own organization, the more likely you are to wind up in a big, rewarding job. Most of the
big breaks come when a business friend recommends another. Keep in touch regularly
with business friends. If you spot an article about a business friend, cut it out and send it
to him. People appreciate it and dont always see stories that might have mentioned
them.
Nothing, not all the armies of the world, can stop an idea whose time has come. Victor
Hugo. An idea is your fourth horse to ride. Be willing to go against the tide.
The fifth horse to ride is faith. Ray Kroc was a failure most of his life until two brothers
with little faith sold their idea to him. Ray Kroc became one of the richest people in
America. The brothers were the McDonald brothers.
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What position do you want to own? The job market today belongs to people who can
define and position themselves as specialists. Dont try to be all things to all people. You
wind up with nothing.
Whom must you outgun? Select a position no one else has a firm grip on. Think about
the situation from the point of view of your competitors.
Do you have enough money? If you can become No.1 in New York, you can roll out the
product to the rest of the USA. It takes money to build a share of mind.
Can you stick it out? Most successful companies rarely change a winning formula. How
many years have you seen those Marlboro men riding off into the sunset? Just take the
basic strategy and find new ways to dramatize it, year after year. Owning a position in the
mind is like owning a valuable piece of real estate.
Do you match your position? Do your advertisements for yourself match your position?
Do your clothes, for example, tell the world youre a banker, a lawyer, or an artist?
Creativity itself is worthless. Only when it is subordinated to the positioning objective can
creativity make a contribution.
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Maintain a global outlook. A company that just keeps its eye on Tom, Dick, and Harry is going
to miss out on Pierre, Hans, and Yoshio.
You dont need a reputation as a marketing genius.
To win the battle for the mind, you cant compete head-on against a company that has a strong,
established position. You can go around, under or over, but never head to head.
To move up the ladder, follow the rules of positioning. The name of the game today is positioning,
and only the best players will survive.
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