The best defensive strategy is the courage to attack yourself

November 21, 2022 0 Comments

Because of his leadership position, the defender has a strong point in the prospect’s mind. The best way to improve your position is by constantly attacking it. In other words, you strengthen your 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 trying to catch up. A moving target is harder to hit than a stationary one.

Gillette is another example. Gillette owned the wet shave market with a product called Blue Blade and later Super Blue Blade.

The company was stunned when rival Wilkinson Sword brought it to market in the early 1960s with the stainless steel blade. Then in 1970 Wilkinson Sword followed with the bonded blade, a metal blade fused to plastic at the “optimum shaving angle”. At that point, Gillette got down to business and began playing a brilliant defensive war game.

Soon after, Gillette struck back with the Trac II, the world’s first double-blade razor. The success of Trac II set the tone for Gillette’s future strategy. “Two blades are better than one,” said Gillette’s advertising.

“Better than a Super Blue Blade,” said the company’s customer who quickly bought the new product instead of the old one. (It’s better to take the business from yourself than to let someone else do it for you.)

Six years later, the company introduced the Atra, the first double-blade adjustable razor. Again, by implication, the new product was better than the Trac II, the non-adjustable two-blade razor.

Gillette also didn’t hesitate to introduce the 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.

Good News was not good news for Gillette shareholders. Disposables cost more to make and sell for less than Gillette’s refillables cost more to make and sell for less than an Atra or Trac II cost Gillette money.

But Good News was a good marketing strategy. It prevented Bic from running off with the disposable part of the market. In addition, Bic paid dearly for its modest participation. Trade sources say Bic lost $25 million in its first 3 years in the disposable razor business.

Gillette continues its relentless strategy of attacking itself. She recently introduced Pivot, the first adjustable disposable. This time, her own product of hers Good News is the target.

Gillette has gradually increased its share of the wet shave market. Today he has about 65 percent of the business.

Attacking yourself may sacrifice short-term gains, but it has one fundamental benefit. Protect market share, the ultimate weapon in any marketing battle.

The opposite also is true. Any company that hesitates to attack itself often loses market share and ultimately market leadership.

Leave a Reply

Your email address will not be published. Required fields are marked *