By : Alexander Mulya
(Chief Executive MarkPlus Institute of Marketing)


Marketeers March 2010

If you’re a fan of Al Ries, you might have heard Avis Rent-A-Car (car rental service in the US) and its legendary campaign, “Since We are Only No. 2, We Try Harder”. Avis promises to be more aggressive in terms of its service compared to its number one competitor (Hertz). 

In his book, Al Ries points out how its provocative campaign has successfully attracted the public’s sympathy for Avis as a player that is more aggressive in its service. Avis’ sales rapidly increased and Avis was once able to take the number one place for a moment.

The funny part is, as the “Since We Are Only No.2, We Try Harder” campaign first came out, Avis was actually listed in the top 5 players, but not the number 2 player! However, as it positions itself as no. 2, Avis was able to create a dramatic sensation of “no.1 vs. no.2” that is worth to fight for. We all know that conflicts often create publicity.



In Indonesia, all eyes are on Daihatsu for the pas three years. It has walked up the ladder from the number 4 player to the number 2 (right below Toyota). Although it is still far from Toyota, its spectacular progress in Indonesia is worth the discussion.

Similar to Avis, Daihatsu is also trying harder because they have realized that thar are still many holes to fill in if they want to hold their position as the number 2 player. The year 2009 is a fearful year for businessmen and women alike, including the automotive industry. The global financial crisis has successfully bitten off the sales of many industries in the country, including the automotive industry with a 20% decline compared to previous years.

As sales were decreasing, Daihatsu was able to take over the number 2 position in the country’s automotive market, leaving its previous spot as the number 3 player. Daihatsu’s market share has changed from 12% to 16,9% because it has maintained its sales that has only declined a small amount, while others were free falling

Daihatsu’s sales increase did not come by itself. The global financial crisis and the industry’s improvements are the main reasons. The crisis has made customers think more efficient and careful when buying products. As the crisis downshifted, people bought cheaper products that are of the same class.

This condition has given Daihatsu a blessing to its cars that are sold with affordable prices. At the time of the crisis, those who usually buy cars with a price of around Rp. 200 million would buy cars that are priced around Rp. 170 million. The ones who usually buy Rp. 170 million cars are now buying Rp. 150 million cars, etc. Daihatsu is playing in the Rp. 150 million – 190 million price range and has succeeded in taking advantage of this opportunity.



But it was not enough. In the 2009 crisis, Daihatsu welcomed it with a number of improvements that has been in progress for the past four years. Therefore, as the crisis came, Daihatsu already has the wanted results that it has been waiting for. Daihatsu has been and is still regarded as a “cheap” car producer. Its products are considered to be week, with a sale that only reaches 1500 units a month. Daihatsu was positioned in the fourth or fifth rank in the national automotive industry.

Before the improvements in 2004, although Daihatsu’s factory has a large capacity, it was running far below its most optimal level. The company then decided to find a solution on how to decrease the number of workers and cut down the costs so that the company will still be able to survive. Shareholders are not the only ones who are concerned; workers are also worried as they witness the plummeting sales and the decline of Daihatsu’s performance. Fortunately, before any cut downs on workers and costs were taken into action, the company came up with a brilliant breakthrough project in the beginning of 2004 to improve Daihatsu’s performance in Indonesia in terms of sales and brand.

Want to know more about Daihatsu’s phenomenal breakthrough?

A full version of this article in Bahasa Indonesia can be read in our March 2010 edition of Marketeers.