Ask the Expert

Question: We need to get back to the basics, the fundamentals of our customer and marketing communications—simplify all of the complexities that have crept in like evil grey goo-matter nanobots. Where's the very best place to start?

Answer: How about starting with the fundamentally first law of marketing: Get there firstest with the mostest.

What's the fundamental law of warfare? It was Civil War General, Nathan Bedford Forrest, who expressed it the best: "Get there firstest with the mostest."

Marketing is warfare conducted with communications rather than guns and bullets. But the same fundamental principle applies—get there firstest.

In our books and articles, we call this principle "the law of leadership." There are enormous consequences of leadership, and they are all favorable.

Your leadership position attracts the best people, the best distribution, and the best news coverage. (When a media outlet is doing a story about the fast-food business, who do you suppose is the first company they call? McDonald's, of course.)

Competitors that enter the market later are forced to cut their prices, which makes it difficult for a me-too brand to make much money.

Take Red Bull, the first energy drink. Here in the U.S., Coca-Cola countered with its own energy drink, a product called KMX. In spite of the fact that Coca-Cola is the world's largest soft drink company, the marketing victory went to Red Bull, a product that outsells KMX in the U.S. market 20 to 1.

KMX didn't work, so Coca-Cola recently came back with Full Throttle, an energy drink that is unlikely to do much better than KMX.

Take Gatorade, the first sports drink. Coca-Cola countered with its own sports drink, a product called PowerAde. In spite of the fact that Coca-Cola is the world's largest soft drink company, the marketing victory went to Gatorade, a product that outsells PowerAde in the U.S. market 7 to 1.

Seven to one isn't the whole story. In order to compete, a number-two brand usually sells for less, greatly reducing profit margins. PowerAde, for example, is currently sold at a local supermarket for 20 percent less than Gatorade.

The first carbonated citrus drink was Mountain Dew. Coca-Cola countered with its own carbonated citrus drink, a product called Mello Yello. In spite of the fact that Coca-Cola is the world's largest soft drink company, the marketing victory went to Mountain Dew, a product that outsells Mello Yellow in the U.S. market 9 to 1.

Mello Yello wasn't going anywhere, so Coca-Cola also tried Surge, which didn't go anywhere either.

The first spicy cola drink was Dr Pepper. Coca-Cola countered with its own spicy cola drink, a product called Mr. Pibb. In spite of the fact that Coca-Cola is the world's largest soft drink company, the marketing victory went to Dr Pepper, a product that outsells Mr. Pibb in the U.S. market 8 to 1.

And so it goes.

The first all-natural drink was Snapple. Coca-Cola countered with its own all-natural drink, a product called Fruitopia. In spite of the fact that Coca-Cola is the world's largest soft drink company, the marketing victory went to Snapple, a product that greatly outsells Fruitopia.

Question: If the Coca-Cola Company, the world's largest soft drink maker, can't make a success of a me-too product, why should you expect your company to do so?

What are we saying? That the marketing function doesn't matter? That the key to a company success is research and development? That all a company has to do to become successful is to be the first company to introduce a new category?

Not at all. The second most important law of marketing is the law of the mind.

"First in the market is nothing. First in the mind is everything."

That's why marketing is the key to success. It doesn't matter which brand or which company is literally first. It only matters which brand or which company gets into the mind first.

The first beer on the U.S. market was Yuengling, but not in the mind. The first beer in the mind was Budweiser. As a matter of fact, Budweiser was the first national brand of beer.

The first computer was Remington Rand's Univac, but not in the mind. The first computer in the mind was IBM. And IBM went on to dominate the mainframe computer business with as much as 80 percent of the market.

The first MP3 player with a hard drive was introduced by Creative Technology, but it didn't get into the mind. The first MP3 player with a hard drive to get into the mind was Apple's iPod. And so it goes.

What if you can't be first? There is still an opportunity to be second. It's the law of opposites: "If you can't be first, you can be a strong number-two brand by being the opposite of the leader."

Coca-Cola is the old, established brand of cola. Your parents drank Coca-Cola, so Pepsi-Cola became a strong number-two brand by focusing on the younger generation. "The Pepsi Generation" was the theme.

Listerine is the bad-tasting mouthwash, so Scope became a strong number-two brand by being the first good-tasting mouthwash.

Mercedes-Benz makes big, comfortable cars, so BMW became a strong number-two brand by focusing on smaller, more nimble cars. "The ultimate driving machine" was the theme.

What about being number three? Forget about it. In most categories, there is room for only two brands. Coca-Cola and Pepsi-Cola. McDonald's and Burger King. Duracell and Energizer.

About the Author:

Al Ries

Al Ries is chairman of Ries & Ries, an Atlanta-based marketing strategy firm that he runs with his daughter Laura Ries

Al is a legendary marketing strategist and the bestselling author (or co-author) of 11 books on marketing including "Positioning: The Battle for Your Mind," "Marketing Warfare," "Focus," "The 22 Immutable Laws of Branding," "The Fall of Advertising & the Rise of PR" and his latest "The Origin of Brands."

Al was president of the Association of Industrial Advertisers (now the Business Marketing Association) and the Advertising Club of New York. He was also chairman of the Club's Andy Awards. In 1989, Sales & Marketing Executives International gave him its "Tops in Marketing" award. In 1999, PR Week magazine named him one of the 100 most influential PR people of the 20th century.

Always one for controversy, Al's book, "The Fall of Advertising & the Rise of PR," has generated enormous interest in the marketing community. The book made both the Business Week and The Wall Street Journal bestseller lists. In addition to being reviewed by these publications, it was also reviewed by USA Today, Harvard Business Review, Boston Globe, Chicago Sun-Times and many other publications.

Al's latest release, "The Origin of Brands" explores "divergence," the best way to create a new brand. The concept is analogous to the creation of a new species, as pioneered by Charles Darwin in his classic book on the subject.

Al currently writes a monthly marketing column for AdAge.com and is an often-quoted expert in many publications. He resides in Atlanta, Georgia, with his wife, Mary Lou.

Contact Information:

Al Ries, Chairman
Laura Ries, President
Phone: 770-643-0880
Fax: 770-643-0051
E-mail: Al Ries or Laura Ries
Address: 2195 River Cliff Drive, Roswell, GA 30076