- Think about how long Coca-Cola has been the #1 cola (since the 19th century) or Hertz has been the #1 car rental company (since 1918) and you’ll get a sense for how difficult it is to displace the top brand in a market.
- As we’ve learned in previous brand positioning tips, a key part of the brand positioning process involves deciding on the competitive frame of reference or references in which you’d like to position your company or brand. I emphasize references because one thing to consider is whether, in addition to positioning your brand in an existing market (where you may not be #1), you should be creating a new market in which you can be #1, because there is no one else in it yet.
- Some leading business strategy thinkers refer to this as a “blue ocean strategy” where you choose to create or grow a new market rather than fighting in a competitive one that already exists (a “red ocean”).
From a brand positioning perspective, I often return to a similar principle I call the 1-2 punch.
The 1-2 punch is simple:
Punch 1: Grow the market
Punch 2: Lead the market you grow
Punch 1: You may compete in a frame of reference where you are not #1, but throwing punch 1 means putting your energy into creating or growing a different competitive frame of reference that didn’t exist in the minds of your audience before.
Punch 2: This is where you must really capitalize on the benefits of being an early mover in a market. If you throw punch one (grow the market), but do not effectively land punch 2 (lead the market you grow), you may find yourself in a world of hurt. Let’s look at a few examples:
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