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Dear CMO: First, a confession. When I wrote the memo on “Killing Giants, Part 1”, I didn’t actually have a “Part 2” in mind. I was just hoping that things would progress along and new thoughts would quickly come to mind. Thankfully, a few good questions -– one spurring a 300-word response -– shook a few new ones loose....
To be clear, this isn’t a recitation of Michael Porter’s three generic strategies from Competitive Strategy -– these zen-like strategies apply broadly, as all marketing koans should; these are specific, tactical lessons either learned first-hand or, at worst, second. And they’re up for debate, discussion, and addition.
Our first outing discussed aikido, thin ice, inconvenient truths, and the war of the flea. This note covers a few new ones. Here goes:
Killing Giants, Redux:
Lesson #5: Zag
Your competitor and your industry may decide that zigging is the new black. You can follow them and be another steer in the herd. Or, you can zag. Polarize your market. Be the un-cola, understand why being the un-cola works for you and for your market, and be very, very good at it. Simplifying the content delivery system (a CD, not a cartridge) in your Playstation. Move away from where everyone else is going and figure out how this works for you.
At most, you’ll give yourself a clear point of differentiation from the giant in your business and provide your customers a clear choice. At very least, you should consider this is a strategic exercise that forces your team to question sacred cows and ask “why” one more time. I’m neck deep in this one right now and will possibly be giving readers a glimpse of this later –- story developing.
Lesson #6: Show Your Teeth
If you win on a head to head basis, force a comparison. Show your teeth. Display your superiority like the Beach Master bull elephant seal you are on the beach of your particular industry. The Pepsi challenge. The Folgers taste test.
And be very sure and very careful, because if there’s a shred of subjectivity in your face-off, that thing called “user generated content on the Web” will find you. Seen any spoofs on the Apple “I’m a Mac” ads? I thought so. Valeria Maltoni at Conversation Agent gives us a very cautionary tale with her post on Fiji Water, who foolishly called out Cleveland’s public water system only to find that the City by the Flaming Lake had a higher quality product. Gulp.
If you’re better, make sure everybody knows it. Tell your story in the same language in as many places as possible to as many people as need to hear your story. The homepage of your website, the spine of your PR strategy, the first and last thing your CEO says on Hardball, the first of the three “remember always to say” bullets on your retail channel training laminated pocket cards: everybody gets the same facts with the same proof points. Be horribly and boringly consistent with your messaging when you’re better. You will become the itch that the giant can’t scratch.
Lesson #7: Speed Kills
Speed kills the slow, at least. Your ability to move faster than the giants do is a lethal weapon. They have Roadmap Review Sub-Committee Task Forces. You launch products. The roadmap moves to the Roadmap Tiger Team. You launch version 2. They are slow. You are fast.
Have you ever done business in Japanese retail? Japanese competitors rev their product lines, on average, between three and four times a year. In the US, we do this once every 12 to 18 months. If you’re a US company trying to enter Japan, this will make your head spin. This is why so many US companies fail in Japan, too.
Mass customization is another speed weapon. Can you offer the ability for your customers to personalize their product, service, or use? Find ways of meaningfully delivering this, while your giant plods ahead with a “one size fits whoever fits the one size” strategy.
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Key Takeaways:
> Zag: polarize your market for a good reason.
> Show Your Teeth: force a comparison. If you’re better, make sure everybody knows it. But make sure you’re better before you go down this path.
> Speed Kills: you are smaller, faster, and hold less baggage than giants. Take advantage of your lighter weight.
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Now, dear CMO, it’s your turn – is there a Killing Giants, Part 3? Any color commentary on the seven strategies? War stories from your own front lines?
More on this as it develops. But in the mean time, collect your forces, bide your time, and plan your own strategy on how you’re going to kill the giant in your own market.
Regards,
Stephen Denny
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Comments
Stephen,
Excellent point. I think parts 1 and 2 can be applied to all our businesses, small or large.
Zag is the area that I am currently focused on, in that my direct mail pieces now carry a white paper on "Being Special" (i.e., differentiation). Like Zag, the paper calls for businesses to identify what makes them special, so they can separate themselves from the pack. And we offer to help them discover that specialness.
Posted by: Lewis Green | 01.30.07
Stephen:
I just had to laugh about the heading "Show your teeth" -- since I put on braces one year ago, I've become very conscious of that.
All kidding aside, in the long term, I think a strategy to demonstrate that you're better in doing better work, standing behind your product, and being remarkable on your own merits.
All the comparisons may continue to take your product towards a more commoditized space where comparing is the norm.
Posted by: Valeria Maltoni | 01.30.07
Great debut post, Stephen! Glad to have you here.
I like "Zag" quite a bit, too. It reminds me to keep an eye on the competition, but not chase them. Tap into your own strengths, and exploit them. Lead, don't follow.
Posted by: Ann Handley | 01.30.07
"Speed Kills" has been a Google advantage over Microsoft... But as Google has grown so much, they cannot possibly still be seen as a small, nimble company... Yet they are able to remain large and nimble. Why is that so, and why has Microsoft not been able to adopt the same dexterity?
Posted by: Cam Beck | 01.30.07
Well said.
Zag reminds me from a section from the classic Trout & Ries 22 Immutable Laws...I was listening to yesterday.
Use your greater competitor's biggest strength as leverage against them. Use that weakness as your differentiator. They had cited Avis vs. Hertz, where Avis acknowledged themselves as being #2 and instead of perceptional positioning themselves as the 'best' or 'leader', they said 'we try harder'.
Alternatively, one can position themselves in a new category...like you mentioned the 'un-cola' in which 7-up placed themselves in the soft-drinks market.
Great topic!
Posted by: Mario Vellandi | 01.30.07
Welcome to The Daily Fix -- what a great voice and set of views you add.
I'm especially fond of "zag" (do like you call it that). Besides being a very sound business strategy--and brand 'insurance' as I see it--it's a law of innovation. And wouldn't you know it, we'll be covering zagging in the next segment of Book Club. So thanks for putting that seed out there a couple weeks before the next book launches...and not even knowing it ;-).
P.S.: Looking forward to "Killing Giants, Part 3".
Posted by: CK | 01.30.07
All: yep, ZAG is a fun strategy to employ when you see a herd mentality driving your industry -- I particularly like this strategy when something external is helping push the herd along. Think channels here. A channel wants something of the 'usual suspects' of vendors with whom it does business; this acts like a set of blinders and drives product development that may or may not appeal to the end user. An interesting seam opens up. Thus, ZAG isn't just "differentiation": it's "difference". This isn't a semantic difference -- it's fundamental.
Mario: at the risk of falling hostage to my own terminology, you're describing what I called, "aikido" in Killing Giants, Part 1. Both play interesting roles --
Valeria: your point is true -- if the standpoint here is taking aim at a giant, the comparison will do you good (assuming it does, in fact, do you good).
Cam: great question and one that I'm not personally qualified to answer. I can guess that it's one of corporate culture and creeping bureaucracy, that perhaps MSFT has a legacy of "shipping product" as opposed to Google's "launching (non-physical) web properties", or that perhaps the Google teams are smaller, and indeed more nimble. I'll give the podium to whoever has a better first person opinion, though.
So you want a 'part 3'?? Give me some ammo! Tell me your stories and add to the list. ("... if you don't give me input, I'll tag this little kitten with a meme...").
Posted by: Stephen Denny | 01.30.07
You opened your first post with a painting of of David with the head of Goliath. Are lessons from that actual story appropriate in this forum?
Much has been said of the bravery of David - but an often overlooked aspect of the story is the trust of the Israeli army. As you read the account, you will see there was more than two lives at stake - that if David had lost, the Israeli army would have become the slaves of the Philistines. And so the Israelites put their trust and confidence in someone who was adept, skilled, quick on his feet, and who was allowed to slay the giant in his own way.
I believe there are parallels in today's businesses. When I have "slain giants" (e.g. beaten competition to close really big deals) it has been when I have had support from the top man (as David did, read the story). If David had needed to spend his time and energies resolving bickering and dissention in his own ranks, distracted by multiple opinions and perspectives, the story may have ended differently.
Posted by: Dave Krehbiel | 01.30.07
David vs goliath? Few years ago, it was 1994, I used to work for BBDO media in Italy. One of our client was Pepsi. Here and in other European countries it has always been a no contest match between Pepsi and Coke, with the latter adv budget largely outscoring Pepsi one. We, at European level, then decide to zag and show teeth. We closed a deal with some major tv station to air a comparative commercial (banned at that time in Italy) "The thirsty rider" for one week. The commercial show a rider who decide to ride for some other several miles because the oil station has only Coke. The Coke brand was very visible on a red fridge. We deliver to the station even the commercial with the refrigerator without any Coke logo. When Coke guys discovered it and ask for retire the commercial it was too late: the following week we aired the commercial with the white fridge but everybody knew it was the Coke one. Well the result was a peak on sales and awareness.
Posted by: gianandrea facchini | 01.31.07
Stephen,
I now see my rent-a-car ex better fitting within Aikido - a refusal to fight with emulation, but rather embracing competitor weaknesses.
Zag is then category/identity repositioning in a complete tangent...to allow the brain mental room to perceive implied (but not necessarily inherent) differentiation...so that direct comparisons aren't made so easy anymore.
N'est pas?
Posted by: Mario Vellandi | 01.31.07
Great article ! Since i'm on a new venture myself and scared to death. What if i can't deliver, what if i don't/can't follow through.
Reading some of these stories have given me added confidence. I know i'm a good person, have integrity, and treat others like i want to be treated. I'm hoping this strategy will get me where i want to go.
I'm new in the area i live in now, resigned a great position to follow my wife's career (minister)and now working on starting a home based business using the resources available to me from my contacts and the skills i possess.
Thanks for the courage.
John
Posted by: John | 01.31.07
John, you're very welcome and best of luck with your new venture! You've entered a very good community of marketers here at The Fix and on the Prof's, so please take advantage of what's available to you here -- I have and I strongly recommend it.
Let us all know how we can help --
Posted by: Stephen Denny | 02.02.07