Flanker brands are products or brands that accompany or extend an existing brand to target new market segments and increase market share. They can be especially useful for companies with long-standing products and can help carve out new niches in the market. Using a flanker brand can also help reinvigorate a workforce and protect the existing brand if the new product fails.
A flanker brand is a product or brand that serves as an accompaniment to or extension of an existing brand. Companies are using high-end brands to target those sections of the market that their existing products don’t already serve and hopefully increase their overall market share. For example, a company that has historically sold medium to high-end toilet paper to private consumers might find a cheaper brand of bulk toilet paper to appeal to another segment of the market, such as hotels or residential buildings. offices. Using a companion brand can be an especially important strategy for companies that have been marketing specific products for a long time, as it can be difficult to attract new customers to old products, and some products are inherently limited in the types of consumers they can attract.
As an example of how a flanker brand might work, imagine that a company has produced a certain brand of dog food for many years and sales have stagnated. The company decides to introduce a couple of new dog food products targeting different segments of the market. A brand might include high-end natural ingredients that are priced higher than the existing brand. Conversely, another new brand might sell for less and target consumers looking for a bargain.
Even if sales of the original dog food decline, the end result can be positive if the two new brands have excellent sales. The three brands together could likely carve out a larger share of the dog food market for the company. As this example demonstrates, even if a flanker brand competes with the existing brand, the company can ultimately take advantage of it by carving out a new niche in the market.
There are other benefits that can be gained from a company that markets a trendy brand. By bringing a new product to market under a different name, the existing brand will likely not be associated with the new product should it fail. Additionally, using side-by-side brands can be a way to reinvigorate a workforce that has been used to creating the same product for a long time.
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