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Avis. An honest second place

Area: Marketing and Advertising · Model node: Strategy

An analysis of a public company using open sources. This is not an EMET client case.

Context

In the early 1960s Avis was the second car rental company in the United States and far behind the leader, Hertz. According to published accounts, the company had not made a profit for more than ten years. In 1962 new management brought in the advertising agency Doyle Dane Bernbach.

Symptom

The company's advertising said the same things as the leader's, only with a smaller budget. Customers saw no reason to choose number two when number one was available.

Cause

The company was trying to look like the leader. Nobody was using its real difference: it was the one catching up, and it had to try harder.

The fork

Keep competing with the leader on the leader's terms, or openly admit second place and turn it into an argument in its favor.

Decision

The agency proposed a campaign that plainly called Avis the second company in the market. Copywriter Paula Green wrote the line that became the motto: "When you're not the biggest, you have to try harder. We try harder."

Execution

The advertising went beyond the slogan. The ads listed specific commitments: clean ashtrays, a full tank, fast service. Customers could check these promises themselves, so the company had to keep them.

Outcome

According to Slate, within a year Avis went from a $3.2 million loss to a $1.2 million profit, its first in more than a decade. From 1963 to 1966 the market share gap with Hertz narrowed from 61 versus 29 percent to 49 versus 36. The company used the motto for about 50 years.

What it means for you

Positioning works when it rests on the truth about the company and on promises the customer can check. A beautiful phrase without delivery lasts until the customer's first visit.

  • What do you say about yourself that your competitor could not say?
  • Which promises in your advertising can a customer check for themselves?
  • Where do you honestly trail the leader, and can that become an argument?

We would start by comparing the promises in your advertising with what customers actually get, using reviews and repeat purchases.

Key dates

YearEvent
1962Doyle Dane Bernbach campaign for Avis
1963According to Slate, the first profit in more than ten years
1963–1966The market share gap with Hertz narrows

Sources

  • Slate. *Was "We Try Harder" the Most Brilliant Ad Slogan of the 20th Century?*, August 2013: Source
  • Wikipedia. *Paula Green*: Source
  • Wikipedia. *Robert Townsend (author)*: Source)

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