Due to his leadership position, the defender has a strong point in the prospect’s mind. The best way to improve your position is to constantly attack it. In other words, it strengthens its position by introducing new products or services that make existing ones obsolete.
IBM is a master of the game. From time to time, IBM introduces a new line of mainframe computers with significant price / performance advantages over existing products.
The competition continually struggles to catch up. A moving target is more difficult to reach than a stationary one.
Gillette is another example. Gillette owned the wet shaving market with a product called Blue Blade and later Super Blue Blade.
The company was surprised when its rival Wilkinson Sword brought it onto the market in the early 1960s with the stainless steel blade. Then, in 1970, Wilkinson Sword followed up with the bonded blade, a sheet of metal fused with plastic at the “optimal shave angle.” At that point, Gillette got down to business and began playing a brilliant defensive war game.
Soon after, Gillette fought back with Trac II, the world’s first double-bladed razor. The success of Trac II set the tone for Gillette’s future strategy. “Two sheets are better than one,” the Gillette ad read.
“Better than a Super Blue Blade,” said the company’s customer, who quickly bought the new product instead of the old one. (Better to take the business out of yourself than to have someone else do it for you.)
Six years later, the company introduced Atra, the first double-bladed adjustable razor. Again, by implication, the new product was better than the Trac II, the non-adjustable two-blade razor.
Gillette also did not hesitate to introduce Good News, an inexpensive disposable razor (with two blades, no less). This was an obvious attack on Bic, who was preparing to introduce his own disposable razor.
The good news was not good news for Gillette shareholders. The disposable cost more to manufacture and sold for less than the cost of manufacturing and selling Gillette’s refillables for less than what an Atra or Trac II was costing Gillette money.
But Good News was a good marketing strategy. It prevented Bic from escaping with the disposable portion of the market. In addition, Bic paid dearly for its modest stake. Business sources say that Bic lost $ 25 million in its first 3 years in the disposable razor business.
Gillette continues with her relentless strategy of attacking herself. It recently introduced Pivot, the first adjustable disposable. This time, your own Good News product is the target.
Gillette has gradually increased its share of the wet shaving market. Today it has about 65 percent of the business.
Attacking yourself may sacrifice short-term gains, but it has a fundamental benefit. Protect market share, the ultimate weapon in any marketing battle.
The opposite also is true. Any company that is hesitant to attack itself generally loses market share and ultimately market leadership.
