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Stealth Positioning
What It Is and When To Use It

"Stealth Positioning" is a product positioning strategy introduced by *Youngme Moon*, where a product is positioned in a way that intentionally conceals its true nature, usually by affiliating it with a completely different category.

In an Harvard Business Review Working Knowledge article, Moon states that "Consumers may feel intimidated by products in the category (as can be the case with new technologies); they may be skeptical of the products because previous offerings have failed to live up to expectations; or they may have personal objections to products or companies in the category." "By using stealth positioning, companies can, in effect, sneak products into the market and gain acceptance that might otherwise prove elusive."

By using Stealth Positioning, companies can, in effect, sneak products into the market and gain acceptance that might otherwise prove elusive. - Youngme Moon Harvard Business School	She goes on to say that "When used thoughtfully, stealth positioning is a legitimate way to diffuse prejudice about a product or company, encourage acceptance, and deliver value to customers." Apple used this strategy when it unveiled the Mac Mini in 2005. Moments after Apple unveiled it, the Internet was buzzing with speculation about just what the new computer was for.

Moon states that "Sold without a monitor, mouse, or keyboard, the Mini was a minimalist aluminum box, six inches square and two inches tall. It left everything up to the imagination—which is precisely what Apple had in mind."
"What's striking about this stealth strategy is that Apple didn't affiliate the product with a specific alternative category." "It simply suggested that it was not a PC—a strategy that not only disassociates the Mini from other low-priced, commoditized PCs, but leaves future marketing options wide open."


Cnet noted that "Many viewed the introduction of the Mac Mini as a shrewd way to profit from the huge success of the iPod." The Mac mini currently ships with Apple's Mac OS X Leopard operating system installed, and also includes software such as a web browser and the iLife suite of Apple applications to create and manage videos, music, photos and DVDs.

In radio, the inception of the the “Jack” format could be akin to Stealth positioning. Positioned as "like an iPod on shuffle," Jack offers a seemingly random mix of music with an irreverent and decidedly anti-corporate flair. Below the surface is a unique and complex music sequencing structure that is anything but random, conceived and executed by some of the radio industry's best corporate minds.
According to the jack.fm site, "the first JACK-FM station was launched in Vancouver, Canada in December 2002. Overnight the listening public catapulted the station to number one in the adult ratings." Today, the format has been licensed in many US and world markets.
Another example of Stealth Positioning in radio promotions is the Double Your Paycheck* promotion. Connecting winnings to consumer’s wages immediately puts more value on those dollars. As a result, consumers see a much stronger value to the prize than a typical $1,000 giveaway.
Additionally, the typical promotion requires the entrants to complete a time-card like inventory of their typical daily listening habits, thereby filtering for those consumers most likely to respond to diaries. Stealth positioning must be considered carefully. Moon cautions that "When used thoughtfully, stealth positioning is a legitimate way to diffuse prejudice about a product or company, encourage acceptance, and deliver value to customers." But the strategy can backfire if consumers discover that a company used the technique to cheat them by exploiting their naïveté."
For more information, email Tripp Eldredge or call (859) 655-9200, ext. 103. dmr regularly updates our site with important new ideas and applications for marketing. Be sure to check back each month to get our latest insights and how they apply to the broadcast industry. *"Double Your Paycheck" is used under license from Emmis Communications, LLC.