Posted in Marketing and Strategy Terms, Total Reads: 1017
Definition: Battle of Brands
Battle of brands is an intense competition among several brands from same product category for the retailer's limited shelf space and for the market share. Usually the brand with better and effective promotional strategy emerges as the market leader. Often, the "battle" only relates to the brand itself since the products are very similar in nature. Owing to the insignificant difference between the products consumers base their purchase decision on the emotional utility they drive from a product instead of functional utility.
The brand uses several marketing gimmicks to attract and convince consumers that their product is superior to the competitor’s product.
The personality, image of the brand and the relationship it maintains with its customers also influences the purchase decision. Only if a consumer actually cares about a brand, will he buy its product over competitors. The brand identity is very important; it is the way in which the consumer sees the product.
Corporates use different marketing tactics to attract consumers such as reduction in price by offering special deals, Loyalty reward points etc. Some companies even offer higher margin to retailers who are willing to give premium shelf space to their products.
The most significant part of the battle of the brands, however, is fought through both online and offline advertising.
Advertising is the most effective and efficient way for a business to establish its brand identity and communicate the benefits of its products to the potential consumers. It provides a platform to prove their product’s superiority over others. Some brands even opt for head on challenge and use the competitor’s brand faults as selling points.
What it takes to win: Online presence, Customer engagement, loyalty programs, understanding of local markets, customer care etc. are some factors which can give a brand an edge over its competitor.
Fierce competition between Pepsi and Coca-Cola to dominate the carbonated soft drink market. This rivalry is famously known as cola war.
Another example would be the stiff competition between two of world’s largest sportswear giants Nike and Adidas to stay on top of each other.