Posted in Marketing and Strategy Terms, Total Reads: 1024
Definition: Fighting Brand
A fighter brand is specifically designed to counter the brand launched by a competitor to wrest market share from the company. These brands are not designed to target consumers, but to specifically face the challenge posed by these competitor brands.
Flanker brands are a related concept, Also known as multibranding, these brands are launched in addition to the main brand In order to expand the brand portfolio.
The use of fighter brands started with the branding of cigarettes in the 19th century and is often used in times of economic crises. When customers have reduced buying power in times such as these, the managers in charge of high-end premium products are faced with the following choices: Should the prices be reduced, standing the risk of potentially rebranding the product as a commodity, or should the prices be kept constant, risking the possibility of till-now loyal customers leaving and never returning? Most often, companies choose a third alternative: the fighter brands.
A successful fighter brand not only serves its original purpose of defeating the competitor’s foray into its home turf, but also expands the market. An example of a successful fighter brand is the Celeron microprocessor, brought out by Intel to face the threat from cheaper processors that were better suited for the nascent market for low-cost PCs such as the AMD K6. In doing so, Intel succeeded in preserving the brand equity and premium image of its Pentium chips. At the same time, it wanted to prevent AMD from gaining a toehold in the lower-end of the market. The cheaper version of its Pentium chips, Celeron, was thus introduced to serve this market.