In less than two weeks there will be an epic battle before our eyes. On Super Bowl Sunday juggernauts will flex their muscles and show us why they are the better…brand?
Sure there are those that are tuning in to see Peyton’s Bronco’s battle Cam’s Panthers, but these days Super Bowl commercials are almost as highly anticipated as the game itself. And they have the same competitive positioning. Pepsi versus Coke, Coors versus Budweiser, McDonald’s versus Taco Bell, and Verizon versus everyone. Each year we watch as organizational competitors look to take each other down. And while the advertisements would have us believe that there is a brand victor, the truth is that in brand competition rarely is there a winner.
That’s because market competition should be to “distinguish from” but it has morphed to mean “fight against”. The postures are dramatically different. Fighting “against” actually puts you in follower-mode — always considering your maneuvers in light of competition. Some of that, of course, is important. If your competitor is taking market share from you with fancy pricing footwork, you can’t ignore it. But out-maneuvering against a competitor is hardly a guaranteed way to distinguish yourself from that competitor.
In his book Zero to One, Billionaire investor and start-up guru Peter Thiel says, “More than anything else, competition is an ideology – the ideology that pervades our society and distorts our thinking. We preach competition, internalize its necessity, and enact its commandments. As a result we trap ourselves within it – even though the more we compete the less we gain.”
Peter is correct in the pervasiveness of competition in our lives. From the earliest moments of life we are in competition with our siblings. The earliest days of school finds us competing with classmates for rank. By the time we arrive in an organization we are competing to be a succession chosen nine boxer. But what if all of this competition against others has actually pulled us away from the work required to be distinctive leaders, organizations, and brands from others? And what can organizations and leaders do to reject this competitive framework and truly identify their distinctions? Brands are far more than consumer preferences on shelves. We each have a Brand – it’s our reputation. Our company has a Brand as an employer. Our team has a Brand as a career destination place…or not.
Competition is focused on the enemy. Distinction is focused on one’s self.
One of the greatest risks of brand competition is that you spend more time spying on the competition then being forward looking yourself. One example of this came in 1985 when Coke spent an estimated quarter of a million dollars to design a can of Coke that could be consumed in space. NASA agreed to put the cans on the Challenger. Pepsi, wanting in on the mid-80’s space craze, spent over an estimated $14 million dollars in R&D as they attempted to take “one giant sip for mankind.” At the end of the day both cans were on the Challenger and both brands reported little growth as a result of the campaigns. Needless to say, had Pepsi, rather than copying Coca-Cola, sought to find a different cultural phenomenon to hitch itself to, perhaps they could have seen some return on that $14 million dollars of investment. The lesson? Brands must define their unique substance and find partnerships, campaigns, and mediums to tell a more substantive story. Competition breeds copying and following. Copying is the enemy of distinction. Following is not leading.
Competition broadcasts irrational fear. Distinction signals a quiet confidence.
When a brand invests time and money into a campaign and uses it to talk bad about its competitors instead of pointing out its own product or service strengths, it makes the brand look like it is unsure of its own strengths. A recent example of this can be seen in Samsung’s unending attack of the iPhone. When the iPhone 5 was revealed Samsung immediately launched a campaign with the message that “the next big thing is already here” and focused on all of the things that the iPhone can’t do. Why would Samsung disparage the hottest product in their market if they were not deeply threatened by it? Consumers can smell the insecurity. Rather than being swayed by your competitors every move, remain secure in your brand’s identity and strategy. Be confident in what your new products and service CAN do rather than focusing on what your competitors can’t. That confidence will be rewarded. This can be applied to your personal brand as well. Imagine you are you are a senior manager who is in competition with peers for a GM position. Any hallway conversation that includes references to one of your under performing peers, reeks of your own lack of confidence in your credibility for the GM job. Remember that any blaming, cynicism, or finger pointing shouts of your insecurity and quickly becomes apparent to potential buyers, employers, and co-workers.
Competition uses retaliation. Distinction requires containing your own reactivity.
In our culture, we have a preference for fair play. This is what ethicist Jonathan Haidt calls reciprocal altruism – we expect that others would be kind, even when it is at some cost to themselves, for kindness given in the future. So when brand competition is aired, consumers often respond negatively to what they perceive as an unfair and excessively mean-spirited attack. And when you attack others you risk offending your own customer base who may have (or currently does) buy products from them. So rather than reacting negatively, organizations must work to remain respectful of their competitors. Certainly if they are your competition they are doing something right! So rather than retaliating, communicate with reciprocal altruism by highlighting your distinctions rather than debating minor degrees of excellence in your similarities. Or consider a personal example, when you are interviewing for that next promotion and you know you’re up against several colleagues, your posture toward them, and how you distinguish yourself from them in the process, will all signal important aspects of your brand.
So next Sunday, as you watch the competition heat up on the field and during time outs, reflect on how you and your organization can remain distinct and avoid the exhausting, unhelpful cost of competition.