After studying the case "Introducing New Coke", we have mentioned of "Flanker brand" as one way to compete.
So what is flanker brand? why is it important? and whether it will work for the brand or not? This paper will give you the answer of these questions. "Flanker brand is a new brand introduced into
the market by a company that already has an established brand in the same product category. The new brand is designed to compete in the category without damaging the existing item’s
market share by targeting a different group of consumers." Flanker brand has some advantages, such as: shelf space broaden; capture "brand switchers"; Reduce risks to the existing brands/company, etc. In sprite of its importance, flanker brand can not apply for every brand, every company. A flanker brand will work best if we implement it appropriately.
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I have doubt with a flanker brand. Is it really helpful to protect or increase brand equity?
ReplyDeleteIf the Coca Cola Company creates the new "flanker brand" to respond to local competitors, can this "flanker brand" really help "Coke"? Isn't the new brand nothing to do with "Coke" and only help the "company"? Umm....
Well, it might be better than just losing the market share of the segment or deteriorating the original brand, while the company has to bear the increasing cost in marketing, distribution, and production.
I need to consider again..
I think that a brand flanker could be very helpful because it attracts new customers frm different segments. For example Pepsi's argument was that its drinks tasted better than Coke's and the blind test also "proved" that. Thus, there are people who preferred sweet sodas. Coke could have attracted those people if it proposed another sweeter drink. That would expand Coke's consumers segment I think. It is true that there will be cost increase but I think that as long as it will bring more revenue, it should be a good solution. The most important thing is to analyze or forecast the revenue before going for a flanker brand.
ReplyDeleteFlanker, also referred to as "fighter" brands are positioned with respect to competitors' brands so that more important, and often more profitable flagship brands maintain their desired positioning. Fighter brands must not be so attractive that they cannibalize the higher priced comparison brands. Yet it cannot be designed so cheaply if it is seen as connected to other brands in the portfolio that it reflects poorly on the other brands. An example is P&G's Luvs diapers that flanks the more premium Pampers.
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