Being a leader is better (bgym book post 1)

This is the first of a series of posts leading up to the new brandgym book launch on April 26. You can pre-order here. The book is focused on how to gain and retain brand leadership. And we'll start by looking at why its better to be a "Leader Brand" than a "follower brand".

Being a follower or "challenger" brand has been glamorised in some circles, portraying the brave battle of the little guy against the big bully. This makes it seem exciting and challenging to be the number two or three brand, playing catch-up with the market leader. An example of this is loved and lauded Avis advertising campaign 'We try harder because we're number 2'.

Well, we have a different view. We think that being a leader is better. Much better.

By leadership this could be outright market leadership, such as Tesco or Wal-Mart in supermarkets. Or it could be leadership of a specific sector, defined by target group, channel or price positioning. For example, the Pago brand of juice in France is the dominant leader in cafes, hotels and restaurants.

So, why is being a leader so much better?

Business benefits

Data from the PIMS institute shows that businesses with large shares (50%+) have three times the rate of return than small-share businesses (10% or less). So, it might be cool to be the rebellious number 3 or 4 brand. But, to make money, I feel the need, the need to lead.

Owning the central benefits
Leader Brands tend to own the 'central benefits' of their marketplace. Rather than having a strong image for a specific benefit, they score highly across a range of key attributes. For example, we recently worked with Hollywood chewing gum in France, a brand seen as the best across the board, for taste, freshness, quality and innovation.

This forces follower brands Freedent and Mentos to focus on the secondary benefits of oral care and fun respectively. The key to being a Leader Brand is not differentiation, but rather distinctiveness: creating a memorable and fresh execution of the central benefits of the market.


Bargaining power with retailers
Leader Brands negotiating power with increasingly powerful retailers is a critical advantage. Follower brands are in danger of being screwed for margin, or even being squeezed off the shelf altogether.

Winning the ‘war for talent’
A final advantage is helping attract the best people. This advantage is described in the book ‘The War for Talent’ as follows: “The company’s role in the market place, either as a product or market leader, can prove to be a major pull factor.”

In conclusion, being a follower brand may be fun for a while, but long term being a leader is better.

In the next post we will look at the key principle at the heart of the brandgynm approach to gaining and retaining leadership: "Follow the money".

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Well now, who was offended when the story broke?Unless you're Tom Tomorrow and start every chain of "reasoning" with "I hate the Republican party, trefehore...", I don't think there's any reason to expect that the complaint came from the DoD. If they wanted soldiers to stop sending stuff in to such sites, they'd have no qualms about pillorying a few guys as an example (cf. Charles Graner and Lynndie England).

[Marilva]

No, to the Pentagon saying, "our siolders are animals, but we slapped a few of them" is not good news. Good news is "nobody talking about it at all."Look, if you want to go ahead and believe that this really is just a big coincidence, go right ahead. I'll try not to let that ruin my day.For the record, I think the siolders in question are scum, the site operator is scum, and people who use "obscenity" to justify supression of freedom of speech are scum. So it's just a scum-fest all around.

[Parvaiz]

the investigation was ctnniouing and any pertinent information would be shared with the U.S. Army Criminal Investigations Division" ?I know a bit about constitutional law, and while this is not legal advice, I can tell you that obscenity charges are generally only brought up to harass people, because (a) they're very, very hard to prosecute within First Amendment limitations, and (b) the number of parties out there practicing obscenity without being charged is staggering. I think it's very clear that only people being charged are ones who earn the ire of law enforcement.

[Auth]

Taking you out of order....If I were Rumsfeld.... Well, that's a hard hypothetical to aewsnr. He gets to play in lots of spaces I have no access to and I am constrained to play in spaces mostly unimportant to someone in his position. I, speaking for myself, have seen photos etc. from WWII soldiers and so on. The internet is a new factor but the hectoring, by otherwise good soldiers, isn't. And things like the Stanford Prison Experiment predict this kind of thing. I suppose I'd add it to the short stack of things like Abu Ghraib and do two things: (1) I'd encourage the commander in chief to give a even it the meat of it is going to fly over most people's heads. (2) I'd ask for a report from the COs of the poster about what the fuck is going on.As for my frame (nice formulation, btw): part of my point in all this contrarianness is that there's a lot more by way of open sources out there than you realize. There's vastly more information out there, for anyone, than you see on the news, in the paper, or in most of the blogosphere. I don't want to just spew all my bookmarks at this site. Maybe, just to choose a pretty banal one... start with (although they haven't spoken about this incident specifically, unless I missed it). You can find a lot "two or three clicks" from there.-t

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