Flanker Brands

Flanker Brands: Definition

Flanker brands are additional brands introduced by a company in the same product category to capture a different segment of the market. These brands typically vary in price, quality, or features to appeal to different customer needs and preferences. Flanker brands are often used to fill gaps in the market, prevent competitors from gaining market share, or target a specific competitor’s customers.

When is 'Flanker Brands' Used?

Flanker brands are used when a company wants to:

• Expand Market Share: By offering multiple brands in the same category, a company can capture more market share and cater to a broader audience.
• Counteract Competitors: Introducing flanker brands can help a company compete directly with rivals by offering alternatives that meet specific consumer needs.
• Address Different Consumer Segments: Flanker brands allow companies to target different customer demographics, price sensitivities, or preferences without diluting the main brand.

Pros and Cons of Flanker Brands

Pros:

• Market Coverage: Flanker brands can help cover more of the market, addressing different customer needs and preferences.
• Competitive Shielding: They can protect the main brand from competition by attracting customers who might otherwise choose a competitor’s product.
• Increased Revenue: By appealing to different segments, flanker brands can increase overall sales and revenue.

Cons:

• Brand Cannibalization: There is a risk that flanker brands may take sales away from the company’s existing brands rather than attracting new customers.
• Increased Complexity: Managing multiple brands within the same category can be complex and resource-intensive.
• Diluted Brand Equity: If not managed well, flanker brands can dilute the brand equity of the main brand, especially if there is significant overlap in market positioning.

How 'Flanker Brands' are Useful for Product Managers

For product managers, flanker brands offer several strategic benefits:

• Market Segmentation: Flanker brands enable product managers to segment the market more precisely and tailor products to specific consumer needs.
• Risk Management: By diversifying the brand portfolio, product managers can mitigate the risk associated with relying on a single brand in a competitive market.
• Flexibility in Positioning: Flanker brands provide flexibility in positioning and pricing strategies, allowing product managers to respond more effectively to market changes.

When Should 'Flanker Brands' Not Be Used?

Flanker brands may not be suitable in the following situations:

• Resource Constraints: If the company lacks the resources to manage and market multiple brands effectively, flanker brands could lead to operational inefficiencies.
• Strong Main Brand: When the main brand is very strong and well-established, introducing flanker brands might confuse customers or dilute the main brand’s image.
• Low Market Differentiation: If there is little differentiation between the flanker brands and the main brand, the benefits of launching a flanker brand may not justify the costs.

Additional Considerations for Product Managers

• Strategic Alignment: Ensure that flanker brands align with the overall brand strategy and do not conflict with the positioning of other brands in the portfolio.
• Customer Perception: Carefully manage customer perception to ensure that flanker brands complement rather than compete with the main brand.
• Performance Monitoring: Regularly monitor the performance of flanker brands to ensure they are achieving the desired market penetration without negatively impacting other brands in the portfolio.