Reference no: EM133321369
Question 1: Based on the article, explain the different tactics of Branded Wars?
Question 2: Imagine that you are marketing a high-quality product. Write a paragraph of 6 sentences that explains the 'Branded War" strategy you will use to market your product? Explain.
Branded Wars
Aggressive marketing
Aggressive marketing has now reached a high level of activity, and the market leaders are under constant pressure to lower their prices in an effort to dominate the market. Aggressive advertising uses excessive tactics to motivate customers to check out their products. For example, in 1980 Pepsi Company placed a bottle of Pepsi Perfect in the movie Back to the Future. Using a defensive strategy, in 1982, Coca Cola launched Diet Coke and acquired Columbia Pictures, making the probability of Coca Cola even more omnipresent in Hollywood. This is just one example of competition within a free market that has 'rapidly escalated into all-out brand war.
Own-Label Products
Another instance of corporate heavyweights to win market share is the use of own-label products. The own-label products are items packaged and marketed under the brand name of a particular retailer. For example, Target
sells a variety of branded snacks from companies like General Mills and Frito-Lay, but it also sells its own chips and crackers under the Archer Farms brand - Target 's private label brand. The result is that brand loyalty is fast becoming a thing of the past. The once unchallengeable Nescafe and Kellogg's are actually losing sales because their higher price is no longer automatically associated with higher quality. And in many supermarkets across Europe and the United States own-labels now account for over 55% of total sales.
Lookalike product
Of course, the big brands are not surrendering without a fight. In 1990, the British supermarket chain, Sainsbury launched its own Classic Cola designed in a similar package as their competitor Coca-Cola. It managed to secure 15% of the total UK cola market in just two months. But Coca-Cola responded quickly. They told Sainsbury to change its packaging fast or Coca-Cola would reduce its prices and leave Sainsbury's hopelessly overpriced. Sainsbury continues to sell Classic Cola, but it no longer has the same brand recognition.
Pirate brands
The luxury branded manufacturers are also confronting an enemy, namely, the pirate brands. Brand piracy is the unauthorized use of protected brand names, logo, and designs. For a fraction of the recommended retail price, you can pick up a fake Calvin Klein perfume. The marketing of pirate brands has increased to the point that companies like Reebok and Armani are calling for a crackdown on the pirates, who in 1994 robbed firms of more than $10 billion in retail sales.