Challenging rivals where they are most vulnerable is more likely to succeed than challenging them where they are strongest, ESPECIALLY when challenger possesses competitive advantage in areas where rivals are weak!
Firstly, they are expensive. Many valuable resources will be used and lost in the assault.
Secondly, frontal attacks are often unsuccessful. If defenders are able to re-deploy their resources in time, the attacker’s strategic advantage is lost. You will be confronting strength rather than weakness.
Also, there are many examples (in both business and warfare) of a dedicated defender being able to hold-off a larger attacker. The strategy is suitable when
the market is relatively homogeneous
brand equity is low
customer loyalty is low
products are poorly differentiated
the target competitor has relatively limited resources
Envelopment Strategy (also called encirclement strategy) –
This is a much broader but subtle offensive strategy.
It involves encircling the target competitor.
This can be done in two ways.
You could introduce a range of products that are similar to the target product. Each product will liberate some market share from the target competitor’s product, leaving it weakened, demoralized, and in a state of siege. If it is done stealthily, a full scale confrontation can be avoided.
Alternatively, the encirclement can be based on market niches rather than products. The attacker expands the market niches that surround and encroach on the target competitor’s market. This encroachment liberates market share from the target. The envelopment strategy is suitable when:
the market is loosely segmented
some segments are relatively free of well endowed competitors
the attacker has strong product development resources
the attacker has enough resources to operate in multiple segments simultaneously
the attacker has a decentralized organizational structure
Pepsodent, launched in 1993, was the first toothpaste with a unique anti-bacterial agent to address the consumer need of checking germs even hours after brushing.
Pepsodent packs included a Germ Indicator in February-May 2002, which allowed consumers to see the efficacy in fighting germs for themselves. As a follow-up, in October 2002, Pepsodent offered Dental Insurance to all its consumers to demonstrate the confidence the company has in the technical superiority of the product.
Pepsodent connects directly with kids and their parents. Pepsodent has always worked in the direction of an overall awareness of dental health. The relaunch campaign in October 2003 widened the context to "sweet and sticky" food and leveraged the truth that children do not rinse their mouths every time they eat, demonstrating that this makes their teeth vulnerable to germ attack.
Pepsodent's most recent campaign aims at educating consumers on the need for germ protection through the night.
Colgate has developed a powerful Branding Strategy which has significantly helped the Brand in acquiring substantial amount of share in the oral care market of India. In order to strengthen its' Brand Identity, Colgate is still restructuring its Branding Strategy.
Colgate Branding Strategy was strong enough to position the company as a major brand in the oral care market of India. The Brand Colgate emerged as a market leader as it bagged considerable amount of market share in all the segments of oral care market like toothpaste segment, tooth powder segment and toothbrush segment. Colgate has succeeded in establishing its Brand Image and gaining substantial market share in spite of facing tough competition from the brands like Hindusthan Liver, Babool and Anchor. Still the Brand Colgate is continuously updating and improving its' branding strategy in order to strengthen its' Brand Name and Brand Identity.
The future Branding Strategy of Colgate may comprise the following steps and actions:
For maintaining the Brand Equity in the market, every company requires a system of continuous growth and upgradation . So, in order to develop new products, Colgate may give emphasis on Research and Development Projects.
The Brand Strategy of Colgate also aims at reaching to the rich and consuming customers of rural India by introducing some Ayurvedic Oral Care Products.
In order to strengthen its' Brand Image in the urban market of India, Colgate may launch some oral care products specifically targeting the urban youth and the urban rich class.
Colgate Branding Strategy aims at introducing some special oral care products which will focus on functional benefits. The Brand can launch specific oral care products for different age groups.
The Branding Strategy of Colgate also plans to customize its packaging techniques, based on price points. This, in a way will establish a new pricing strategy.
Colgate Branding Strategy has a objective strengthening its' business promotion network. The company is undertaking advertising strategies and campaigning programs with the objective of reaching to the customers of India across income classes
Colgate Toothpaste Product Line Colgate Dental Cream Colgate Total 12 Colgate Sensitive Colgate Max Fresh Colgate Kids ToothPaste Colgate Fresh Energy Gel Colgate Herbal Colgate Cibaca Family Protection Colgate Advanced Whitening Colgate Active Salt Pepsodent Toothpaste Product Line Pepsodent Complete + Gum Care Complete 12 Pepsodent Herbal Pepsodent Milk Teeth Orange Pepsodent Milk Teeth Strawberry Pepsodent Sensitive Pepsodent Whitening
This involves the defense of a fortified position.
This tends to be a weak defense because you become a “sitting duck”. It can lead to a siege situation in which time is on the side of the attacker, that is, as time goes by the defender gets weaker, while the attacker gets stronger.
In a business context, this involves setting up fortifications such as barriers to market entry around a product, brand, product line, market, or market segment. This could include increasing brand equity, customer satisfaction, customer loyalty, or repeat purchase rate. It could also include exclusive distribution contracts, patent protection, market monopoly, or government protected monopoly status. It is best used in homogeneous markets where the defender has dominant market position and potential attackers have very limited resources.
This involves constantly shifting resources and developing new strategies and tactics.
A mobile defense is intended to create a moving target that is hard to successfully attack, while simultaneously, equipping the defender with a flexible response mechanism should an attack occur.
In business this would entail introducing new products, introducing replacement products, modifying existing products, changing market segments, changing target markets, repositioning products, or changing promotional focus. This defense requires a very flexible organization with strong marketing, entrepreneurial, product development, and marketing research skills.
Flank position - This involves the re-deployment of your resources to deter a flanking attack. You protect against potential loss of market share in a segment, by strengthening your competitive position in this segment with new products and other tactics. (see flanking marketing warfare strategies)
Counter offensive - This involves countering an attack with an offense of your own. If you are attacked, retaliate with an attack on the aggressor’s weakest point.
Costs of pioneering are sizable & loyalty of first time buyers is weak
Rapid technological change allows followers to leapfrog pioneers
Skills & know-how of pioneers are easily imitated by late movers
It is easy for latecomers to crack market
Timing of Strategic Moves Advantages / disadvantages of First Mover + if pioneering helps build brand image + if early contracts with suppliers etc advantageous + first time customer loyalty + makes imitation harder - expense - rapid change may lead to obsoletion - weak customer loyalty - easily imitated