Flanker brand

From CEOpedia | Management online

Flanker brand it is a new brand which is being launched on the market by a company which already has a stable brand in the same product category. The new brand competes with the old brand in the same category. Its offer is directed to other consumers so it does not damage the market share of the already existing brand. This strategy can be also called fighter branding or multibranding. One product can garner a much lower overall market share than multiple brands. A flanker branding strategy can be very effective if implemented correctly[1]. Companies with flanker brands in a single product category usually have the below types of products in their portfolios[2]:

  • A premium brand which offers high prices and high quality
  • One or more "value" brand which offers a lower price for a variety of benefits or for a bit lower quality

Advantages of flanker brand

The development of flanker brands is a challenge but is worth considering. There are a lot of different advantages of flanker brand[3]:

  • Allows a company to interest new customers from various market segments.
  • Monitors the sales results of various brands.
  • Gains more space for the company resulting in a much greater dependence of the retailer on the company's brands.
  • Makes it possible to offer several brands.
  • Protects the company through giving a product its own unique name.
  • Companies with a high-quality existing product can introduce lower-quality brands without weakening the high quality of their brands.

Brand portfolio

There are four basic types of brands in brand portfolio: bastion brand, prestige brand, fighter brand, and flanker brand. According to Riezebos R. "The essence of a brand portfolio is to use other brands to protect an organization's most profitable brand from possible competitive attacks"[4]. Flankers brands is a type of sub-brand introduced into the market by a company that has a stable brand in the same product category[5]. The most profitable brand is the bastion brand. However, it is worth noting that the flanker brand has a lot of strategic advantages. In terms of brand-added value, a flanker brand is characterized by a high level of psychosocial meaning and a high level of performance. Flankers brands have the same price-profit ratio as the bastion brand but bastion brand offers different needs and desires of customers[6].

Examples of Flanker brand

  • Apple: Apple has used flanker branding by creating sub-brands such as iPad, iPhone and Apple Watch. These sub-brands are marketed separately from Apple's main brand, and they have enabled Apple to gain a larger market share in the tech industry.
  • Coca-Cola: Coca-Cola has created several flanker brands such as Diet Coke, Coke Zero and Coke Life. These brands are marketed separately from the main Coca-Cola brand and have enabled Coca-Cola to gain a larger market share in the beverage industry.
  • McDonald's: McDonald's has created several flanker brands such as McCafé and McWraps. These brands are marketed separately from the main McDonald's brand and have enabled McDonald's to gain a larger market share in the fast food industry.

Limitations of Flanker brand

  • Limited resources: Flanker branding requires additional resources for research and development, marketing, and other costs associated with launching a new brand. This can be a burden for companies with a limited budget.
  • Risk of damaging the existing brand: If the flanker brand is not successful or its message is too similar to that of the existing brand, it may damage the reputation of the existing brand.
  • Over-saturation of the market: If the flanker brand is too similar to the existing one, it could create an over-saturation of the market and make it difficult for both brands to differentiate themselves.
  • Difficulty in creating a distinct identity: It can be difficult to create a distinct identity for the flanker brand. The message of the existing brand and the flanker brand must be different enough to stand out in the market.
  • Cost of maintaining different brands: Maintaining different brands can be expensive and time-consuming. It may require additional personnel and resources to keep the two brands separate.

Other approaches related to Flanker brand

Introduction: Apart from the Flanker brand, there are other approaches related to launching a new brand that can be used to increase the overall market share of the existing brand. These include:

  • Line Extension - This involves extending the existing brand by introducing new product lines or offerings. The benefit of this approach is that it allows the brand to expand its reach and appeal to new customers without alienating its existing customer base.
  • Co-branding - This involves partnering with another brand to create a new offering that combines the strength of both brands. This allows both brands to benefit from the association and can help to increase the overall market share.
  • Brand Licensing - This involves allowing another company to use the existing brand to create and launch a new product. This approach can be beneficial for both companies, as it allows the existing brand to expand its reach and appeal to new customers while also allowing the other company to benefit from the strength of the existing brand.

Summary: In summary, there are several approaches that can be used to increase the overall market share of the existing brand, including line extension, co-branding, and brand licensing. These approaches can be beneficial for both companies, as they allow the existing brand to expand its reach and appeal to new customers while also allowing the other company to benefit from the strength of the existing brand.


Flanker brandrecommended articles
Imitator strategyHorizontal diversification strategyFocus strategySkimming pricing strategyVertical diversification strategyMarket niche strategyMarket followerProduct line pricingConcentrated marketing

References

Footnotes

  1. Giddens N. (2015), p.4
  2. Giddens N. (2015), p.4
  3. Giddens N. (2015), p.4,5
  4. Riezebos R. (2003), p.197
  5. Frydenberg M. (2016), p.27
  6. Riezebos R. (2003), p.198

Author: Aleksandra Majcher