This document discusses competitive brand strategies for pioneers and late entrants. It notes that pioneers have advantages like preference formation, category association, awareness and recall, and preemptive positioning that allow them to gain a large initial market share, often over half. However, late entrants can also succeed through strategies like fast following the pioneer in a better way, differentiation, or redefining what buyers know about the established brand. Research showed that pioneers typically only retained leadership for 5 years, while early and fast followers often succeeded in leading the market over the long run in over half of cases examined.

1. Competitive Brand StrategiesTraditional View- Strategies respond to what buyers want.But when buyers learn how to chose, the strategies create experiences and observation on which buyer learning is based.

2. Pioneer BrandsChallenges- -Successfully educate the customer-Must make the right (lucky) technology choice- Sufficient funding

3. Classic Competitive ProcessAttractive PriceAvailability AdvertisementsAttractive PriceAvailability AdvertisementsAccording to Classic Competitive Process when there is no differentiation on these parameters the Market share should be equal (assumption:Rational Consumer).But the concept is flawed.

4. If two products are equally attractive. Pioneer - 100 percent relative to itself 6th entrant - Less than half of the pioneerSource- “market share rewards to pioneering brands” Urban, Glen, Theresa Carter, Gaskin

5. First Movers Advantage Preference FormationCategory Association – architectural standardsAwareness and RecallPreemptive PositioningPerceived Risk of other BrandsBuyer Entry

6. Late-EntrantsLirsch Diet Cola

7. Conditions for late EntrantsWell-educated buyers- own set of perceptionsRisk in technology – comparatively lowCompetitor set – well defined

8. Late Entry StrategyFast-following Strategy- Playing the game of the Pioneer in a better way with more resources.Differentiation Strategy- Recognizes power of the Pioneer and define themselves as fundamentally different.Innovation Strategy- Redefine what buyers know or perceive about the established brand and the market.

9. Pioneer and Late-Entry Brand PreferencePioneerPioneer AdvantageMarket ShareLate EntrantLate Entrant AdvantageDissimilarity of Brand Extension

10. Power of LaterAccording to Golderand Tellisresearch- 50 Product categories were categorized on the timing of entry as the market Pioneer, early followers, later entrants.In the 50 markets examined-Pioneer retained its leadership for only 5 yrs.Early followers flopped only 8%.Fast followers led in 53% of market.