Smirnoff, a Russian vodka company founded in the 19th century, was the market leader in the US but faced a price war initiated by competitor Wolfschmidt gradually lowering their vodka to $1. To counter this without damaging its premium brand, Smirnoff launched a flanker brand called Relska at a lower price to divert attention away from its main brand while still competing on price. This strategy of introducing a flanker brand succeeded in splitting the market close to 50/50 instead of losing significant market share to Wolfschmidt.

1. White Gray

2. Company Background
• Russian Company
• Moscow
• Founded in Pyotr Arsenievich
Smirnov (1831–1898)
• Operation in 180 countries

3. The Parties conflict
White Gray

4. Case
▪ The conflict arised in US Market
▪ Wolfschmidt pushed Smrinoff for
a price war, by lower their
VODKA $1 gradually.

5. Case
▪ Smrinoff was the market leader
▪ But they offer premium quality,
cost cost leadership in market
▪ Reputation was at stake in
entered in price war

6. Introduction of FLANKER
▪ Smrinoff launched FLANKER
brand RELESKA
▪ Diverted the Competators
attention toward flanker brand

7. Introduction of FLANKER
Relska counter
attacked
Wolfschmidt with a
lower price and was
in price war

8. Smrinoff’s last counter
Smrinoff increased the price as
another counter attack

9. End Result
The maket was about to
be splited in to 50/50.
But end up in 25/75
market share,
7525

10. Thank
You