Defensive WarfareIs what market leaders wage

Offensive WarfareIs strategy for No.2 or No.3 in a category

Flanking WarfareSmaller or new players that are trying to get a foothold in a category by avoiding the main battle.

Guerilla WarfareIs often the land of smaller companies

SIMPLY THINK OF COMPETITORS AS THE ENEMY . ATTACK OR FLANK OR KEEP INNOVATING DEPENDING ON YOUR POSITION IN THE STRATEGIC SQUARE.

NEVER HESITATE TO DESTROY COMPETITION OR ELSE

U WILL BE A PART OF HISTORY.

Principles of Defensive Marketing Warfare

Only the market leader should consider playing defensive.

The best defensive strategy is the courage to attack yourself

Strong competitive moves should always be blocked.

e.g : Gillette : The best a man can get.Owned wet shaving market with Blue and

Super Blue Blade.Launched Trac II (nonadjustable ) and ATRA

(adjustable double bladed razor)

Launched Good News (inexpensive disposable razor to counter BIC (French company which launched disposable razor)

Mach 3:- 3 bladed razors Market share of over 60% in USA/Europe.

Other examples: INTEL (286,386,486,PENTIUM etc.)

J&J : :- Tylenol :- reduced price from $2.85 for 100 to $1.85 to beat Bristol – Myer’s Datril.

Principles of Offensive Marketing Warfare:

The main consideration is the strength of the leader’s position.

Find a weakness in the leader’s strength and attack at that point.

Launch the attack on as narrow a front as possible.e.g. : AVIS :-- “Rent from AVIS . The line at our counter

is shorter”:- AVIS attacked Hertz:-- weakness inherent in Hertz’s position as the largest Rent-A-Car company.

XEROX: Out-innovated the leader 3M (by developing a better copying process-dry instead of wet copying)

Fed Express used principle 3 by saying “ When it absolutely , positively has to be there overnight” (small packages less then 70 pounds)= challenged the leader EMERY.

Wall Street Journal was the leader (2 Mn daily) for financial and business information. The name positions it as a financial paper , so the business side can be attacked == “Business Times” , The daily business newspaper.

Principles of Flanking. A good Flanking move must be made into an

uncontested area. Tactical surprise ought to be an important

element of plan. The pursuit is as critical as the attack itself.

Michael Dell flanked the computer industry and Direct Marketed:- $ 500 Mn company in 5 years.

Miller Lite flanked the beer industry with Lite beer.

DEC flanked IBM (Minicomputers)

Mercedes-Benz flanked GM (Cadillac cars ) at the high end.

Volkswagen's Beetle flanked GM’s big cars.Avon flanked cosmetic companies who used traditional

distribution methods by resorting to direct door-to-door selling.

To launch a true flanking attack you must be the first to occupy the segment.

Otherwise it’s just an offensive attack against a defended position.

Flanking skill requires exceptional foresight because there is no established market for the new product or service.

Indian examples: Nirma, Close-up.

Principles of Guerilla Marketing Warfare.Find a segment of the market small enough to defend.No matter how successful you become , never act like

a leader.Be prepared to bug out at a moment’s notice.e.g.: Rolls-Royce : High priced Guerilla : nobody

competes because 1) existing market is small 2) The company initially has an enormous advantage.Indian examples: 1) Arun Ice-cream : T.N 2) Natural’s Ice-cream : Mumbai 3) Crown CTV : Gujarat. (Geographic

Guerillas)