Exhibit 1.3 Think Small advertisement campaign, crafted in 1959
by Helmut Krone and Julian Koenig at DDB, distinctly positioned and
differentiated the VW Beetle from competition. It was ranked the best 20th
century campaign by Ad Age, in a survey of North American advertisements.
Positioning, a concept that
relates to product differentiation, was introduced by Jack Trout in 1969 and
subsequently, in 1981, popularized by Al Ries and Jack Trout in their
bestseller Positioning: The Battle for Your Mind. According to the duo,
“positioning is what you do to the mind of the prospect”. Whereas differentiation
is the process of distinguishing a product or offering from
others to make it more attractive to a particular target market, positioning is
the act of crafting a distinct and valued image of the brand in the minds of
consumers. In a well-devised strategy, the brand’s position drives all
elements of the marketing mix.
For example, in the 1970s, the slogan “the real
thing”, which captured the essence of Coca-Cola’s position, resonated strongly
with consumers. It was reinforced through memorable campaigns that strengthened
the brand’s iconic status and distinguished it from “imitators”. (Years later “New
Coke” must have come across to Coca-Cola lovers as the antithesis of “the real
thing”).
In the same era that Coca-Cola was reinforcing its
positioning as “the real thing”, 7 Up distinguished itself from the big cola
brands with its “Uncola” position. The campaign “became part of a counter
cultural that symbolized being true to yourself and challenging the status quo”
(www.7up.com).
Among the most celebrated examples in positioning
is the Volkswagen Beetle’s “Think Small” campaign (Exhibit 1.3). In the 1960s
when cars were generally big, beautiful and expensive, the Beetle was
introduced as a small, awkward looking, inexpensive car. Clearly differentiated
and distinctly positioned, the Beetle over the years outsold every car that has
ever been made.
Other noteworthy examples of positioning in the
automotive sector include BMW’s “The ultimate driving machine” and Volvo’s
“Safety first”. To quote from a Volvo advertisement — “Cars are driven by
people. The guiding principle behind everything we make at Volvo, therefore, is
and must remain — Safety”.
Dove, a brand that stands for beauty without artifice, has
articulated that position via memorable advertising campaigns such as Real
Beauty, Evolution, Onslaught and Girls Under Pressure. Positioning the brand as
a theme or a social mission (as opposed to a product — moisturizing soap) gave
Dove the license to transcend categories. The change in positioning coincided
with the brand’s extension from soaps and cleansers to beauty products in
general, including hair-care, deodorants, and skin-care products.
Exhibit 1.4 “Since our birth in 1973, we have changed our name,
we have changed our look, and we’ve changed our logo. One thing that has not
changed is our commitment to our social mission.” To reinforce its social
mission, Singapore’s FairPrice supermarket absorbs escalation in the cost of
essential goods, for limited periods of time.
Positioned as a social mission (Exhibit 1.4), the origin
of Singapore’s FairPrice supermarkets dates back to the 1973 oil crisis, when
the country was experiencing hyperinflation fuelled by shortages and hoarding
of goods. The National Trades Union Congress set up a supermarket cooperative,
NTUC Welcome, to contain prices of essential food products, and the then Prime
Minister Lee Kuan Yew officially opened the first outlet. The chain later was
renamed FairPrice, and it retains its original social mission to help moderate
cost of living for low-income households.
Another notable Singaporean example is the Singapore
Girl which positions Singapore Airlines as a purveyor of grace and Asian
hospitality. In a crowded market, the Singapore Girl emphatically distinguishes
the airline from low-cost carriers as well as other premium airlines.