Rival brands: friendly competition or battle that neither can ever win?

I have to agree with the age old phrase "competition drives innovation". The worlds best-marketed brands all seem to have one strong rival with each brand constantly trying to out-market the other. It  is these brands which I find fascinating and it is even more interesting to consider whether brands in fact, benefit from these huge rivalries.

Directly targeting or responding to the competition is highly common in marketing efforts, I have seen it in my own industry, telecoms, with ads such as these:

3 hit out at Vodafone customers with this banned ad

Vodafone's ad promising a Fixed Price for your entire contract

However, there are far more famous and controversial rivalries:

1. McDonalds vs Burger King

As I mentioned, innovation is key in beating your rivals and due to the fact that McDonalds and Burger King's value propositions are fairly homogeneous, there is a lot of mimicking from both sides. Big Mac, Whopper... are there really many differences? Both brands have sued each other for copyright infringement on a number of occasions. 

Burger King actually made a peace offering for just one day in this story, which was swiftly rejected by McDonalds!  However, what a great bit of PR for BK anyway, making them look like the soft, underdog!

2. Pepsi vs Coca-Cola

Perhaps one of the most historic rivalries, dating back to the early 1900s, and the creativity behind the rival campaigns is fantastic.

Pepsi are definitely more aggressive in their competitive attitude through advertising, but unfortunately Coke have held on to the top spot. Coke has become a name to replace the cola industry as a whole- who goes in to a bar and says "Can I have a vodka and Pepsi?". Coca-cola tend to stick to their traditional roots in terms of branding whereas Pepsi go modernistic, proving that being true to your roots pays off. Coke markets happiness with their 'Share a coke' campaign or their new slogan 'Taste the feeling', whereas Pepsi go for a 'cool' vibe with collaborations with NFL and David Beckham.

3. Apple vs Samsung

Samsung are definitely the Pepsi of the mobile technology world. Their dig at Apple (and Apple customers) below, indicates their willingness to take on the rivalry first hand:

You are often asked; are you an Apple or a Samsung person and it's rare that people switch between the two. I am an Apple user but of course since working at Vodafone my eyes have been opened to the world of Android and how much Android devices can really do. However, if you compare Samsung and Apple's marketing spend vs market share, the true stats really become clear:
Samsung: £8.4bn of marketing spend 19.9% of smartphone market share 15% of total operating income of smartphone makers Apple: £1bn of marketing spend 14.6% of smartphone market share 92% of total operating income of smartphone makers
Whilst Samsung make phones to suit lots of markets, providing lower-range cheap smartphones as well as your S6 Edge's to a premium market, the numbers really do show that Apple's smaller range, however highly targeted to those who expect more from their phones, really does pay off. 

Hope you enjoyed this post, let me know your favourite brand rivalries, tweet me at @stefclarkx

Why creating DEMAND from consumers is the best marketing tool!

I don't know about you but everywhere I've driven, every TV show I've watched and every social media channel I've browsed in the last couple of weeks, I can't help but noticed McDonald's new marketing campaign, whether it be in outdoor advertising, TV and radio ads or paid posts across Facebook and Twitter;

Post by McDonald's.

@krpickersgill @McDonalds trouble is when you get one it will look nothing like that, more like it's just been stood on or run over!!
— Keith J Last (@kentishmale) December 15, 2014

Yes, the McRib is back! Now, I can't say I'm a regular McDonalds visitor myself, but judging the hype on social media, this was a clearly loved product. The McRib product is often introduced for limited periods of time and then taken off the menu. Clearly the marketing spend around bringing the McRib back has been huge as I have seen it just about everywhere! By creating these touchpoints, consumers can build their excitement and remember the product everywhere they go.

Now, one may argue why do McDonalds created this 'limited-time-only' product? If it's so popular- why don't they just keep it on the menu year-round? 

Well, from what I can tell, when it was on the menu permanently, the sales were low... yet not low enough to keep it off forever... so here are the reasons I believe that the intermittent reintroduction of McRib is a great marketing strategy;

1. It creates a sense of urgency in the consumer: It's available for a limited time only! The consumer must stock up if they want to make the most of the product whilst it's still around. The great thing about food is that it's perishable... so customers can go back to McDonalds as many times as possible in the time period in order to repurchase.
2. Nostalgia: Customers may remember the product from the past and want to relive perceived 'happier times'... this also applies to brands who have executed this brilliantly e.g. Cadbury's Wispa
3. Retains customers who may not be regular customers: Customers who might not regularly make trips to McDonalds may do so purely to purchase the McGrill- this therefore brings in extra custom and the potential to retain them further/ up or cross-sell.
4. Creates a great talking point: We all know social mentions and shares are fundamental to establishing an online presence, therefore something which consumers feel their peers may talk about/ something which they perceive to be 'safe' to discuss like McDonalds food.... is likely to be highly discussed. This also applies to the offline world.
5. Something new, but not a risk: New products can hit it off with consumers, but their sales are usually low to begin with due to consumers fearing trying something new. However, the fact that McDonalds have brought this back because it was so well loved in the past, which is a message highly reiterated in their marketing communications activity for McGrill, consumers are much more likely to buy it. When your peers like something- you are likely to want to like it too!
6. Customers feel like they have achieved something: By creating a 'hype' or an upstorm about bringing the product back, customers feel like they have caused this and therefore they feel a better connection with the brand as they feel as though their needs are being listened to. Effectively, this is the case, but it also brings more awareness and talk around the brand itself

This is the kind of genius marketing I get excited about!! So simple yet so effective!

Stephanie