VideoIf a fighter-brand strategy isn't viable — retailers that have their own private-label brands often aren't all that welcoming — it may be more productive to offer coupons, rebates, and other incentives, since, as Rafi Mohammed says, such moves "don't prevent you from charging a premium in the future."
Indeed, as soon as pricing pressure eases up fighter brands are free to leave the ring. The main brand then reclaims that shelf space, relying on a migration strategy — offering trial-size promotions, say — to regain customer mind-share. The fighter brand retreats, ready to fight another day.
Josh Hyatt is a contributing editor of CFO.
Acting Defensive
Manufacturers create fighter brands to attract value-conscious consumers in tough times, but sometimes the attraction is so strong that the brand lives on.
Procter & Gamble
Flagship: Pampers
Fighter: Luvs
Outcome: Luvs has grown to become its own midpriced powerhouse.
Delta Air Lines
Flagship: Delta
Fighter: Song
Outcome: Song lost its wings after about three years.
Anheuser-Busch
Flagship: Budweiser
Fighter: Busch Beer
Outcome: Busch is well established as a "subpremium" brand.
Reader CommentsDisplaying 2 of 2
Tom Lieven
Jan 2, 2009 12:26 AM ET
Questionnable Facts or Allusions
This was a good article with a lot of good ideas for established consumer products companies. There was one … more
Patrick Driscoll
Dec 2, 2008 12:30 PM ET
Needless Mark-up
I enjoyed this article because focusing on improving revenue is the surest way to maintain viability during tough … more
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