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Finding_weakness_in_the_competitor_strength
| Finding weakness in the competitor strength.
“The most perfectly designed package in use.” Above statement
was made by Raymond Loewy on the six and half -ounce bottle of
coca-cola folks in Atlanta (coca-cola base) obviously felt that
the coke bottle was there greatest strength. They used that in
every add and even trade marked it.
But every strength has a inherent weakness Guerrilla marketer
know that.
It was mix of Economic situation and shrewd use of Guerilla
tactics in early thirties, which help the minnows of cola war
raise their head above the water line. In the great depression,
cash was scantly available.
Pepsi cola’s key marketing approach was the 12- ounce bottle
that would sell for same nicked that would buy only six and half
ounce of coca-cola. It was a brilliant strategy executed in a
spectacular way it hit the mark, especially with the young cola,
kids went for quantity rather than quality. Pepsi use this old
saying and hit the bull’s eye. It was a perfect guerrilla
attack. With limited budget coca-cola spent around $15 million
in that year while Pepsi went with 12 ounce bottle with a
$600,000 ad budget.
Now coke was in fix. They can’t go for each bottle capacity
increase without scraping a billion dollar and their greatest
strength the six and half ounce bottle.
Guerrilla knows how to exploit the situation. Even a over
whelming competitor strength. Pepsi know it would be difficult
for coke to turn back and attack is a swift action and they will
have a big time gap between the reaction, a year or two.
Then the last nail in the coffin with Pepsi generation.
Coca-cola was 100 years old brand people use to recognize them
with coke brand older people were keener to drink coke. A
younger person always has a tendency to rebel against old way
doing things and living. Pepsi turned on the heat with Pepsi
generation. In 1964, the idea found wings with a classic, “Come
alive, you are in the Pepsi generation.”
Pepsi new strategy was to position not itself but the
competition, “out of step, out of touch, and out of date.”
Along with that this approach target the youth whose natural
tendency was rivalry with old generation. Pepsi also use music,
which was traditional weapon of teenager to show their rebellion
approach. Younger generation started to attach themselves with
Michael Jackson and Lionel Ritchie. Result was a reduced coke
leadership from 2.5 to 1 to 1.25 to 1 and eventually under able
leadership of John Shcoulley Pepsi toppled coke from its
leadership.
Think again what was coke strength…….actually?
About the author:
This research work for this report is done by Mr. Arvind Kumar,
founder, www.Nuttymarketer.com You may reach him at
arvind@nuttymarketer.com .
Arvind Kumar is an Electrical Engineer from a premier Institute,
Indian Institute of Technology, Delhi, India. He has 3 years
experince in marketing business consulting services and
marketing services. He is founder and CEO of
www.nuttymarketer.com
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