Competitive Brand Strategies<br />Traditional View- Strategies respond to what buyers want.<br />But when buyers learn how to chose, the strategies create experiences and observation on which buyer learning is based.<br />
Pioneer Brands<br />Challenges-<br /> -Successfully educate the customer<br />-Must make the right (lucky) technology choice<br />- Sufficient funding<br />
Classic Competitive Process<br />Attractive <br />Price<br />Availability <br />Advertisements<br />Attractive <br />Price<br />Availability <br />Advertisements<br />According to Classic Competitive Process when there is no differentiation on these parameters the Market share should be equal (assumption:Rational Consumer).<br />But the concept is flawed.<br />
If two products are equally attractive. Pioneer - 100 percent relative to itself 6th entrant - Less than half of the pioneer<br />Source- “market share rewards to pioneering brands” Urban, Glen, Theresa Carter, Gaskin<br />
First Movers Advantage <br />Preference Formation<br />Category Association – architectural standards<br />Awareness and Recall<br />Preemptive Positioning<br />Perceived Risk of other Brands<br />Buyer Entry<br />
Conditions for late Entrants<br />Well-educated buyers- own set of perceptions<br />Risk in technology – comparatively low<br />Competitor set – well defined<br />
Late Entry Strategy<br />Fast-following Strategy- Playing the game of the Pioneer in a better way with more resources.<br />Differentiation Strategy- Recognizes power of the Pioneer and define themselves as fundamentally different.<br />Innovation Strategy- Redefine what buyers know or perceive about the established brand and the market.<br />
Power of Later<br />According to Golderand Tellisresearch-<br /> 50 Product categories were categorized on the timing of entry as the market Pioneer, early followers, later entrants.<br />In the 50 markets examined-<br />Pioneer retained its leadership for only 5 yrs.<br />Early followers flopped only 8%.<br />Fast followers led in 53% of market.<br />
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