Are you a defensive or offensive brand?
Pop quiz for our audience of marketers and brand custodians - Are you employing a defensive brand strategy? On the flipside, do you play with offensive tactics? Or third option, are you avoiding the skirmishes altogether?
The common perception is the bigger the brand or business, the more defensive its strategy becomes. Consider Coca-Cola, 6th on Interbrand's Best Global Brand list in 2021, yet a brand which has achieved significant notoriety for its array of failed product launches (read: attempts at offense) over the journey. However, Coca-Cola’s strength lies in its incredible distribution network, from production through to points of purchase. Majority of its product portfolio from Coke to Fuze to Powerade is ranged globally. Their ability to ‘own the fridge’ and supermarket shelves keeps their more offensive competitors at bay.
But distribution clout is not a strategy alone capable of sustaining their market share. Coca Cola’s credit as a marketing superpower comes down to its focus on consistency of brand and experience beyond just product and availability. From its iconic bottle, visible brand identity to simple tagline ‘Enjoy’ they’re strength is borne from this consistency. The Share a Coke campaign, printing names on bottles & cans, has expanded into over 50 countries, supporting its premier brand Coca Cola - another key defensive marketing characteristic.
On the flipside, the majority of brands ought to be playing offense. Think actively targeting their competitors' customers. Winning market share. Launching new, innovative products and services to market, and quickly too. Undercutting the market leader on price and promotion. Looking for weaknesses and boldly attacking their competitors to exploit these gaps or vulnerabilities.
But how many brands are genuinely this bold in their go to market strategy? In my opinion, the majority of supposed challenger brands treat themselves like market leaders and adopt a defensive strategy. Yes, market leader brands are held up for the success they have achieved, but they are the minority in any given market. They can also afford to be defensive. Slow to make shifts, reluctant to upset current customers and reactive to technology advances and market opportunities.
To be clear, offensive doesn’t mean to publicly go toe-to-toe with the market leader. Think Pepsi vs Coke (Taste Challenge), Burger King vs McDonalds (Burger Wars) or Mercedes vs BMW. All played out in very public, often amusing, PR-stunt-filled communication campaigns.
Rather, the act of being offensive is a strategic approach aimed at generating sales growth, brand value and market share, not just remaining in place (where the market leader wants and aims to park you).
Offensive marketing doesn’t just focus on the market leader, all competitors and customers are ripe for the picking. Generating brand positioning and awareness via more targeted activity, leap-frogging your competitors with advanced offerings, even being more unpredictable in your execution can destabilise major players.
Once nearing bankruptcy, Harley Davidson is held up for its long term offensive marketing strategy against Japanese and Italian manufacturers entering the US market in the 90s. Targeting the same riders, they positioned their motorcycles as superior quality versus cheaper competitors while concurrently building its own iconic brand and image, embracing its bulky bikes and high prices.
More recently and locally, we have seen cloud accounting software Xero dominate the market leader MYOB, by leading with R&D, technology and communicating their brand promise ‘beautiful business’ as a point of difference.
Lastly, by adopting an offensive brand strategy, and following through from plan to execution, we expect you to see a rise in a brand’s creativity, embracing a more innovative team culture and perspective. For the majority of brands, the risk of playing too defensive is hidden. While you may not go backwards during your current tenure as a brand custodian, your ability to grow and develop your brand and business is very limited.
Have a listen to the Business Wars podcast to explore more about offensive and defensive brands.