The Power of Honest Marketing: Avis vs Hertz and Beyond

Unlike what is believed by many, marketing need not always be about tall claims and unmet promises. It can instead also be about honest expression.

In a time of universal deceit, telling the truth is a revolutionary act” — Grorge Orwell

In the world of marketing, where exaggeration and manipulation often dominate, honest marketing stands out as an old but still refreshing approach that resonates with consumers. The intense competition between Avis and Hertz, two car rental companies in the United States, and how one of them won the hearts and market using honest marketing is still the talk of town in the marketing hallways.

Avis, the smaller player in the market, decided to embrace honesty in their marketing strategy. They launched a campaign with the tagline, “We’re number two, so we try harder.” By openly acknowledging their position, Avis aimed to convey their dedication and commitment to providing exceptional service to customers.

“We’re number two, so we try harder.” — Avis

Avis explaining customers why they should go with the second biggest player in the market?

The outcome of this campaign was remarkable. Avis transformed their fortunes, going from losing $3.2 million to earning $1.2 million. Moreover, the market-share percentage gap between Avis and Hertz shrunk from 61–29 to 49–36. This success demonstrated the power of honest marketing in connecting with consumers.

What is Honest Marketing?

Honest marketing is a transparent and straightforward approach where companies communicate truthfully about their products, services, and market position. It involves conveying information in a sincere and authentic manner, without resorting to exaggeration or false promises. This approach fosters trust and credibility with consumers.

Another notable example of honest marketing is Patagonia, an outdoor clothing company. Patagonia has built its brand around environmental consciousness and sustainability. Through their campaigns and messaging, they openly address the environmental impact of the fashion industry and advocate for responsible consumer behavior.

Sustainability as core, even if it means lesser business!

Honest Marketing Planks

i.) Market position: Avis vs Hertz

As seen with the Avis and Hertz example, acknowledging and embracing one’s market position can be a powerful strategy. By openly communicating their second-place standing, Avis managed to differentiate themselves and highlight their commitment to exceeding customer expectations.

ii.) Product: VW’s Beetle Ads

Volkswagen’s Beetle ads in the 1960s provide another instance of honest marketing. The ads humorously embraced the Beetle’s unconventional design, acknowledging its small size and distinct appearance. By embracing these characteristics, Volkswagen created an emotional connection with consumers and built a loyal customer base. The success of Beetle cars is a folk story now as 24 million Beetles were sold worldwide and it was one of the top-5 most selling cars in the world.

iii.) Pricing: Everlane’s Honest Pricing

Everlane, a clothing brand, is known for its commitment to transparent pricing. They openly disclose the cost breakdown of their products, detailing the expenses associated with materials, labor, and transportation. This transparency instills trust in consumers, who appreciate the brand’s commitment to fair pricing practices.

Everlane explains their prices to the customers on their website

Why does honest marketing work?

Honest marketing works for several reasons:

• No pretense: By avoiding false claims and empty promises, honest marketing establishes a genuine and credible brand image.
• Acceptance of weakness: Acknowledging weaknesses or limitations demonstrates humility and authenticity, appealing to consumers’ desire for transparency.
• Trust: Honest marketing builds trust with consumers, who value transparency and integrity in their interactions with brands
• Efforts to serve: Companies that employ honest marketing focus on delivering value and meeting customer needs rather than solely focusing on sales.
• Emotional bonding: By sharing authentic stories and experiences, honest marketing creates emotional connections with consumers, fostering brand loyalty.
• Celebrate Delta: Honest marketing recognizes the positive impact and improvements made by the brand, creating a sense of progress and growth.

Honest Marketing can lead to customers who are more satisfied and trust the brand

In conclusion, honest marketing is a powerful approach that connects with consumers on a deeper level. By embracing transparency, accepting weaknesses, and fostering trust, companies can build strong relationships with their target audience. As demonstrated by the Avis vs Hertz example and other instances, honest marketing has the potential to transform businesses and establish lasting brand loyalty.