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“BRAND IMITATION”




        - SIDVIN S SHETTY
MEANING OF BRAND IMITATION
• A Brand Imitation is a product that borrows or
  copies some special attributes of an famous or
  leading brand, such as an name, shape or
  color.
• These are those that are not identical but are
  similar to
  substance, nature, name, form, meaning or
  intent to an acknowledged and widely known
  product or service.
PICTURES REPRESENTING TO SHOW
      “BRAND IMITATION”
.
.
KINDS OF IMITATION
1)Counterfeits or Product Pirates:

• Counterfeits are copies that carry the same
  brand name or trademark as the original ones.
• It’s an attempt to rob the innovator of the due
  profits.
• Counterfeits are strictly illegal.
• They trade on protected brand name or
  Trademark of an established seller.
2) Design copies or Trade Dress:
• Design copies trade on the style, design or fashion
  of an competitors popular product.
• In these instances where fashion is most important
  than the actual design is been copied and some
  engineering works which gives an slightly different
  looks.
• Mainly done by following the market leader
.




3) Technological Leapfrogging:
• Firms that enter a growing market after an
  innovator will be able to read the market more
  accurately than the innovator solely because of the
  passage of time.
• As, before entering the market, has better ideas and
  responses to market situations, allowing the
  imitator to “Leapfrog” the Innovator with an
  superior Product.
.




4) Knock-offs or Clones:
• Because of sudden success of any firms or
  companies not only they grow but also the clones.
• Clones are those which are to the original but they
  carry different Brand names.
• Often clones are legal product of their own right.
• The absence or expiration of patents, copyrights
  and trademarks makes many of them legal.
• Clones usually sell the same products at an much
  lesser prices.
.




5) Creative Adaptations:
• They are also called as “ Creative Imitations”.
• They take an existing product and either improve
  upon it or adopt it to new arena of competition

6) Adaptation to another Industry:
• Creative adaptation often takes the form of
  recognizing the potential of an innovation
  developed in one industry for use in another by
  either using the same in an newer way or re-
  inventing or upgrading
FACTORS AFFECTING BRAND IMITATION
1) Time:
• Time is an very important thing that would affect
   the success of both innovators and imitators.
• In the case that the innovators are successful and
   receive well responses from the market, the slower
   the imitators can imitate.
• The faster the imitators can imitate the
   innovations, the earlier the imitators can grab the
   market share from the innovators
2) Legislations:
• The presence or absence of legislations to protect
    manufacturing secrets or patents for innovation
    affects the imitation process.
• Patents has an range of time specify and the
    competitor’s cannot imitate in between time
    periods legally.
3) Customer Demand:
• If there is higher levels of demand from the
    customers and lower or lesser competition than
    there would faster ways of imitations for such
    products.
4) Suppliers:
• Suppliers that provide and spread raw materials
   and critical technologies for the manufacture of
   new products or services are another factor that
   affect the speed of imitations.
5) Production Process:
• If the production process is simple and easy to
   imitate, than the imitation can be faster.
6) Spread of Technology:
• The degree of how much and how fast the
   knowledge of innovation can spread and be
   obtained.
7) Environmental Uncertainty:
• Environmental Uncertainty is another factor that
    affects the speed of imitation.
8) Level of IPR’s Protection:
• The level of IPR’s (Intellectual Property Rights)
    protection also has negative relationship with the
    speed of Imitation.
• For developing economies, the result of stronger
    IPR’s protection is an reduction in knowledge flows
    from the advanced countries and a lower rate of
    innovative activity.
IMITATION STRATEGIES
• Imitation strategy is the strategy that not only
  mimics the strategy of other companies but also
  imitates its promotions and distribution strategies
• Imitation strategy is only used at the beginning and
  if, companies continue to use for long-term than it
  would be considered market follower and can never
  become market leader.
• Imitation strategy is for minimizing risk of downside
  loss associated with new entry
Imitation strategies are classified into four types:
1) Piracy strategy: Companies that perform this kind of
   imitation strategy to sell products with the brand and
   product design exactly the same so that the
   counterfeit products are often called.
2) Cloning strategy: Companies using this strategy are
   really imitate an existing product, but given the other
   brands.
3) Mimics strategy: The strategy that mimics the design
   or trade dress mentioned
4) Creative Adoption strategies: It is also termed as
  disguise strategy, namely copying existing products and
  developing or adapting to apply to the new
  environment.
FIRST MOVER
• A first mover is the firm that takes an initial
  competitive action in order to build or defend its
  competitive advantages or improve its market
  position.
• The benefits of being an successful first mover is
  substantial. Especially in fast-cycle markets, where
  changes occur rapidly and where it is virtually
  impossible to sustain an competitive advantage for
  any length of time.
FIRST MOVER ADVANTAGES
• The idea of the first mover advantage is similar to
  that of the old adage, “The early bird gets the
  worm”.
• First movers are also called as “Market Pioneers”.
• Being the first company to sell a new product may
  provide an long lasting benefits, market
  dominance and higher-than-average profitability
  over time.
The Various Advantages are:-
1) First movers develop an cost advantage
• Being first to offer and sell an particular
   product to an specific market means that the
   first mover can begin the movement down
   the “Experience curve”.
• An idea to produce large quantities and
   reduce the cost of producing the products
   using economies of scale and by trial and
   error over time to improve products and
   processes.
2) First movers face less competitive rivalry
                            .




• Although initially the new products get lesser
  customers but if the opportunities is been properly
  assessed the demand can grow rapidly.
• Though competitors will enter the growing market the
  company would have established itself and would have
  considerable amount of market share as well as brand
  recognition.
3) First movers can secure important channels
• First movers have the advantage to select and develop
  strong effective relationships with the most important
  suppliers
• will act as an barrier when competitors enter the
  market and would be forced to exit or go for inferior
  channels of distribution.
.




4) First movers are better positioned to satisfy
  customers
• The pioneers products would be positioned as an
  higher brand in their minds because of supply of
  augmented products to the market.
• High amount of brand loyalty and brand association
  would be present.
• Customers would prefer and believe pioneers
  products rather than new entrants.
.




5) First movers gain expertise through participation
First movers have the opportunity to :-
a) Learn from the first generation of products and
   improve on the basis of product
   features, manufacturing, product design etc
b) Monitor changing needs in markets and change in
   trend because of participation and analysis of the
   market
c) Build up networks, which can provide early
   information’s of opportunities and threats in the
   markets
IMITATION VERSUS LATER MARKET
                  ENTRY
IMITATION                                 LATER MARKET ENTRY

Imitation implies copying, where the      Later entry, in contrast, implies only
imitator consciously mimics the           that the firm has entered the market
pioneer’s product                         after the pioneer, often with the
                                          innovative product of its own
 Imitators Implies later entry, lacking   Later entry does not necessarily
the innovation of its own, the            imply imitation. Often firms
imitator enters the market after the      simultaneously but independently,
pioneers have entered and are             pursue similar innovative products
successful, and imitates or improves
versions “inspired” by the pioneers

Firm rushes its entry to market           Performs its own innovative product
                                          after the innovator’s entry.
FREE RIDER EFFECTS
• The free rider effect is one in which outcome of an
  action is such that, others are able to benefit from
  the action without contributing to its cost, is
  typically viewed as problem for those bearing the
  cost of the action and an opportunity for those who
  are able to benefit from the action.
• A firm bearing to be an market pioneer bears an
  higher costs in market analysis, R&D, customer
  research, sample study, pilot testing etc and literally
  no costs for those copying the same.
• Whether the organization going for new product
                           .




  assessment or development the marketer should
  analyze what is the level of free rider effects the
  organizations
• Later movers may be able to ‘free-ride’ on an
  pioneer firms investments in a number of areas
  including R&D, buyer education and infrastructure
  development. Imitation costs are lower than
  innovation costs in most industries.
• Innovators enjoy an initial period of monopoly that
  is not available to imitator firms.
LATER ENTRANTS
• Later Entrants are companies that respond to a
  competitive action, but only after considerable
  time has elapsed after the first mover’s action.
• Although pioneers do indeed dominate many
  markets, many later entrants have overtaken
  pioneers. Such as:-
• Karl Benz invented the automobile, but Ford
  Motor Company and General Motors took the
  lead later.
• Star was the pioneer in safety razors, but Gillette
  took over from the pioneer
BENEFITS OF LATER ENTRANTS
• A later entrant can take advantage of the
  technological progress that has already occurred
  and manufacture a product in the most efficient
  manner based on learning from market.
• Switching benefits are one of the important benefit
  of later entrants. Switching costs make subsequent
  market entry more difficult, as the first movers
  customers only change when the price advantage
  exceeds their switching costs.
• The ability to free-ride on early-mover investments
• A late entrant has low risk of market uncertainty, as
  there would be certain levels of understanding and
  awareness about the benefits of an certain type of
  products or service
• Flexibility and the resolution of technological and
  market uncertainty
.

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Brand Imitation

  • 1. “BRAND IMITATION” - SIDVIN S SHETTY
  • 2. MEANING OF BRAND IMITATION • A Brand Imitation is a product that borrows or copies some special attributes of an famous or leading brand, such as an name, shape or color. • These are those that are not identical but are similar to substance, nature, name, form, meaning or intent to an acknowledged and widely known product or service.
  • 3. PICTURES REPRESENTING TO SHOW “BRAND IMITATION”
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  • 6. KINDS OF IMITATION 1)Counterfeits or Product Pirates: • Counterfeits are copies that carry the same brand name or trademark as the original ones. • It’s an attempt to rob the innovator of the due profits. • Counterfeits are strictly illegal. • They trade on protected brand name or Trademark of an established seller.
  • 7. 2) Design copies or Trade Dress: • Design copies trade on the style, design or fashion of an competitors popular product. • In these instances where fashion is most important than the actual design is been copied and some engineering works which gives an slightly different looks. • Mainly done by following the market leader
  • 8. . 3) Technological Leapfrogging: • Firms that enter a growing market after an innovator will be able to read the market more accurately than the innovator solely because of the passage of time. • As, before entering the market, has better ideas and responses to market situations, allowing the imitator to “Leapfrog” the Innovator with an superior Product.
  • 9. . 4) Knock-offs or Clones: • Because of sudden success of any firms or companies not only they grow but also the clones. • Clones are those which are to the original but they carry different Brand names. • Often clones are legal product of their own right. • The absence or expiration of patents, copyrights and trademarks makes many of them legal. • Clones usually sell the same products at an much lesser prices.
  • 10. . 5) Creative Adaptations: • They are also called as “ Creative Imitations”. • They take an existing product and either improve upon it or adopt it to new arena of competition 6) Adaptation to another Industry: • Creative adaptation often takes the form of recognizing the potential of an innovation developed in one industry for use in another by either using the same in an newer way or re- inventing or upgrading
  • 11. FACTORS AFFECTING BRAND IMITATION 1) Time: • Time is an very important thing that would affect the success of both innovators and imitators. • In the case that the innovators are successful and receive well responses from the market, the slower the imitators can imitate. • The faster the imitators can imitate the innovations, the earlier the imitators can grab the market share from the innovators
  • 12. 2) Legislations: • The presence or absence of legislations to protect manufacturing secrets or patents for innovation affects the imitation process. • Patents has an range of time specify and the competitor’s cannot imitate in between time periods legally. 3) Customer Demand: • If there is higher levels of demand from the customers and lower or lesser competition than there would faster ways of imitations for such products.
  • 13. 4) Suppliers: • Suppliers that provide and spread raw materials and critical technologies for the manufacture of new products or services are another factor that affect the speed of imitations. 5) Production Process: • If the production process is simple and easy to imitate, than the imitation can be faster. 6) Spread of Technology: • The degree of how much and how fast the knowledge of innovation can spread and be obtained.
  • 14. 7) Environmental Uncertainty: • Environmental Uncertainty is another factor that affects the speed of imitation. 8) Level of IPR’s Protection: • The level of IPR’s (Intellectual Property Rights) protection also has negative relationship with the speed of Imitation. • For developing economies, the result of stronger IPR’s protection is an reduction in knowledge flows from the advanced countries and a lower rate of innovative activity.
  • 15. IMITATION STRATEGIES • Imitation strategy is the strategy that not only mimics the strategy of other companies but also imitates its promotions and distribution strategies • Imitation strategy is only used at the beginning and if, companies continue to use for long-term than it would be considered market follower and can never become market leader. • Imitation strategy is for minimizing risk of downside loss associated with new entry
  • 16. Imitation strategies are classified into four types: 1) Piracy strategy: Companies that perform this kind of imitation strategy to sell products with the brand and product design exactly the same so that the counterfeit products are often called. 2) Cloning strategy: Companies using this strategy are really imitate an existing product, but given the other brands. 3) Mimics strategy: The strategy that mimics the design or trade dress mentioned 4) Creative Adoption strategies: It is also termed as disguise strategy, namely copying existing products and developing or adapting to apply to the new environment.
  • 17. FIRST MOVER • A first mover is the firm that takes an initial competitive action in order to build or defend its competitive advantages or improve its market position. • The benefits of being an successful first mover is substantial. Especially in fast-cycle markets, where changes occur rapidly and where it is virtually impossible to sustain an competitive advantage for any length of time.
  • 18. FIRST MOVER ADVANTAGES • The idea of the first mover advantage is similar to that of the old adage, “The early bird gets the worm”. • First movers are also called as “Market Pioneers”. • Being the first company to sell a new product may provide an long lasting benefits, market dominance and higher-than-average profitability over time.
  • 19. The Various Advantages are:- 1) First movers develop an cost advantage • Being first to offer and sell an particular product to an specific market means that the first mover can begin the movement down the “Experience curve”. • An idea to produce large quantities and reduce the cost of producing the products using economies of scale and by trial and error over time to improve products and processes.
  • 20. 2) First movers face less competitive rivalry . • Although initially the new products get lesser customers but if the opportunities is been properly assessed the demand can grow rapidly. • Though competitors will enter the growing market the company would have established itself and would have considerable amount of market share as well as brand recognition. 3) First movers can secure important channels • First movers have the advantage to select and develop strong effective relationships with the most important suppliers • will act as an barrier when competitors enter the market and would be forced to exit or go for inferior channels of distribution.
  • 21. . 4) First movers are better positioned to satisfy customers • The pioneers products would be positioned as an higher brand in their minds because of supply of augmented products to the market. • High amount of brand loyalty and brand association would be present. • Customers would prefer and believe pioneers products rather than new entrants.
  • 22. . 5) First movers gain expertise through participation First movers have the opportunity to :- a) Learn from the first generation of products and improve on the basis of product features, manufacturing, product design etc b) Monitor changing needs in markets and change in trend because of participation and analysis of the market c) Build up networks, which can provide early information’s of opportunities and threats in the markets
  • 23. IMITATION VERSUS LATER MARKET ENTRY IMITATION LATER MARKET ENTRY Imitation implies copying, where the Later entry, in contrast, implies only imitator consciously mimics the that the firm has entered the market pioneer’s product after the pioneer, often with the innovative product of its own Imitators Implies later entry, lacking Later entry does not necessarily the innovation of its own, the imply imitation. Often firms imitator enters the market after the simultaneously but independently, pioneers have entered and are pursue similar innovative products successful, and imitates or improves versions “inspired” by the pioneers Firm rushes its entry to market Performs its own innovative product after the innovator’s entry.
  • 24. FREE RIDER EFFECTS • The free rider effect is one in which outcome of an action is such that, others are able to benefit from the action without contributing to its cost, is typically viewed as problem for those bearing the cost of the action and an opportunity for those who are able to benefit from the action. • A firm bearing to be an market pioneer bears an higher costs in market analysis, R&D, customer research, sample study, pilot testing etc and literally no costs for those copying the same.
  • 25. • Whether the organization going for new product . assessment or development the marketer should analyze what is the level of free rider effects the organizations • Later movers may be able to ‘free-ride’ on an pioneer firms investments in a number of areas including R&D, buyer education and infrastructure development. Imitation costs are lower than innovation costs in most industries. • Innovators enjoy an initial period of monopoly that is not available to imitator firms.
  • 26. LATER ENTRANTS • Later Entrants are companies that respond to a competitive action, but only after considerable time has elapsed after the first mover’s action. • Although pioneers do indeed dominate many markets, many later entrants have overtaken pioneers. Such as:- • Karl Benz invented the automobile, but Ford Motor Company and General Motors took the lead later. • Star was the pioneer in safety razors, but Gillette took over from the pioneer
  • 27. BENEFITS OF LATER ENTRANTS • A later entrant can take advantage of the technological progress that has already occurred and manufacture a product in the most efficient manner based on learning from market. • Switching benefits are one of the important benefit of later entrants. Switching costs make subsequent market entry more difficult, as the first movers customers only change when the price advantage exceeds their switching costs. • The ability to free-ride on early-mover investments
  • 28. • A late entrant has low risk of market uncertainty, as there would be certain levels of understanding and awareness about the benefits of an certain type of products or service • Flexibility and the resolution of technological and market uncertainty
  • 29. .