Name: Rishabh Agrawal

Roll No.: 2

Summary: Should You Launch a Fighter Brand?

Due to rising consumers income, there is more focus on luxury, But times change.
Economic strains are now causing consumers to trade down, and many midtier and premium
brands are losing share to low-price rivals, A fighter brand is designed to combat, and ideally
eliminate, low-price competitors while protecting an organizations premium-price offerings. the
fighter brand not only eliminates competitors but also opens up a new, lower-end market for the
organization to pursue. Such triumphs, however, usually turn out to be the exception. Most
fighter brands are created explicitly to win back customers that have switched to a low-price
rival. Over the previous decade, Kodaks market share had dropped as many of its customers
switched to Fujicolor Super G film, which was priced 20% lower than Kodaks best-selling Gold
Plus film. Faced with continuing losses in share, Kodak launched a fighter brand called Funtime,
which sold at the same price as Fujis offering. Already a low-involvement purchase, film had
increasingly become a commodity, and most consumers were unaware of the differences in
product quality. To prevent cannibalization, a company must deliberately lessen the value,
appeal, and accessibility of its fighter brand to its premium brands target segments. Managers
need to weigh the effects of cannibalization before rolling out fighter brands. Because these
brands are explicitly oriented toward the rivals that have stolen share from a company, the initial
break-even calculations used to justify their launch often are oversimplistically derived from an
estimate of the lost sales that can be recouped.