The Best Underdog Marketing Campaign Ever: Avis
In the last few decades, “positioning” has become a buzzword among marketers. It seems - especially in the United States - that businesses believe if they put in enough work, market the right content, and have a good understanding of the American dream, they can become number one in any field they desire. At the university I am currently attending, I hear countless people talk about “becoming the next Bill Gates” or something along those lines. Ambition is fine, but the problem comes when you fail to recognize your position. The most reliable way to become number one in a field is to be the first to market with a quality product. There are other ways to break into that number one spot, but for today's article let’s talk about what happens when you find yourself in the number two spot. I think one of the best ways to teach this principle of positioning is by looking at, in my opinion, one of the best-positioned campaigns of all time…
The year is 1962 and you are tasked with putting together a new marketing campaign for Avis Rent a Car. Hertz is currently dominating the market and is leaving you with only an 11% market share. Your CEO has given you the objective to get a five dollar return on every one dollar you spend. The problem? Avis is firmly cemented as the number two rent a car company and you can’t seem to find a way to surpass Hertz. What do you do to position yourself in your customer’s mind?
This is the exact circumstance in which Robert Townsend of Avis found himself. This was a difficult situation for Townsend because there were many easy traps to fall into along the way that could impede his marketing efforts. He could have ignored the competition, pretended to be something he wasn’t, or attacked imaginary flaws of Hertz in an attempt to bring them down. Before I tell you what he actually did, let me explain why each of these pratfalls could have brought failure to Avis’s campaign.
Position Pratfall 1: Ignoring the Competition
In the early days of marketing, directly mentioning your competitors was considered bad form. Doing so made your business seem shady and cast doubt on the company’s business ethics. However, times have changed.
We are in the age of comparative business. Verizon and T-Mobile are locked in a battle of saying “Our company gets better coverage than the other company.” Everywhere you look, businesses are comparing themselves to one another. Those that do not even mention the competition often get left in the dust. It is okay to mention your competition. A business left in isolation will wither up and die.
Positioning Pratfall 2: Pretend To Be Something You Are Not
“Avis is the best rent-a-car in America, come to us!”
A mantra similar to this may be a traditional type of advertising statement, but there is a problem here… If you really were the best, why would you need to tell us? The statement comes across hollow and accomplishes very little. So many companies claim their food, product, service, or business is the best. Take a stroll around New York City and see how many coffee shops claim to have “The World’s Best Coffee.”
What would be more effective is realizing your current market position and owning it. If you aren’t going to be number one, then be the best number two ever to exist. Don’t undersell yourself, but also don’t puff yourself up to something that you aren’t. Ego stinks, and your customers can smell it a mile away. When a company boasts of their own accomplishments they tend to blend in with the same chants of every other company’s marketing team. When everyone sings the same song, the words start to lose meaning. To quote Syndrome from Disney’s The Incredibles…
Positioning Trap 3: Attacking Imaginary Flaws
Exploiting a hole in your competitors’ business is a common strategy for companies trying to overtake a position at the top of the market, but manufacturing nonexistent holes will make you seem petty and insecure.
If you say, “Come to Burger King because McDonald's is too expensive,” you are going to lose a lot of credibility because you have attacked an imaginary flaw. McDonald's is known for being affordable! This is especially a problem in well-defined industries such as the grocery business or - more appropriately - the rent-a-car business. There is not always an obvious flaw on which to attack a competitor, but manufacturing one is never the right answer.
So now that we’ve covered what NOT to do, I will tell you the brilliant idea Townsend had…
“Avis is only number two in rent a cars. So why go with us? We try harder.”
Avis owned their position as the underdog. They did not pretend to be something they weren’t. They found a way to acknowledge their competition and own their place in the market without explicitly naming names to give the competition more business.
These advertisements held a quality that is all too rare in advertisements. It was honest. They showed why being number two is sometimes better. They cannot afford to have dirty cars or poor service. They need to try harder for you so that they can one day become number one. The closing line of the advertisement is incredibly smart: “The line at our counter is shorter.” It shows you why going to the number two option is your best choice.
Within 4 years, Avis jumped from 11% market share to 35%. This stuff works.
Now, I am sure some of you cringe at the thought of accepting your spot as number two, and that is natural. I am not saying to try not to be number one, but in some markets, it just won’t happen until there is a big shift. No search engine is going to overthrow Google for quite some time. Never stop trying for the top, but understand that there are some giants that you won’t be able to conquer in one campaign, or even in several campaigns. Acknowledge where you in the market, and never stop outworking those currently ahead of you. In short: try harder.
For more insights into positioning, read “Positioning: The Battle for Your Mind.” It has taught me a great deal about positioning, including this story about Avis. It is a must-read for anyone in the marketing industry.
