Flanker Brands

A flanker brand is a Line extension by the company. HUL having different varieties of washing powder detergent, e.g. Surf Excel for the Premium segment, RIN for the middle segment and Wheel for the lower segment.
P&G having Ariel for the premium segment and Tide for the middle segment.

A flanker brand is a new brand introduced into the market by a company that already has an established brand in the same product category. The new brand is designed to compete in the category without damaging the existing item’s market share by targeting a different group of consumers. This strategy, also called fighter branding or multibranding, is used to achieve a larger total market share than one product could garner alone. Companies with multiple brands in a single product category generally have the following types of products in their portfolios:

• A premium brand that offers high quality at a higher price.
• One or more “value” brands offering a slightly lower quality or a different set of benefits for a lower price.

Why is flanker branding important?

Flanker branding is important because it allows a company to attract new customers from various market segments. The main brand of a company’s portfolio should target the market segment containing the most consumers. Another brand can then be positioned to convert users from other market segments by using a different set of benefits or product characteristics. For example, Proctor and Gamble’s (P&G) (worldwide) Tide is an extremely successful laundry detergent. In order to appeal to consumers who desired a lower-cost detergent, P&G introduced Cheer, which is a slightly lower quality product offered at a value price. While Tide’s sales dropped slightly with the introduction of the new brand, the combined sales of Cheer and Tide were higher than Tide’s original sales alone, allowing P&G to gain a greater market share. A company’s brands should attract customers from competing brands and not each other.

There are a number of advantages to developing a flanker brand:

• Gain more shelf space for the company, which increases retailer dependence on the company’s brands.
• Capture “brand switchers” by offering several brands.
• Develop excitement within the company by monitoring sales figures of the different brands.
• Protect the company – giving a product its own unique name means it will not be readily associated with the existing brand. This reduces risk to the existing brand and/or company if the product fails.
• Companies with a high-quality existing product can introduce lower-quality brands without diluting their high-quality brand names.
  

Developing flanker brands does present challenges. Introducing a new brand is quite costly. Creating another independent brand requires name research and substantial advertising expenditures to create name recognition and preference for the new brand.

Will Flanker Branding Work for You?

Flanker branding is not for everyone. There are a number of questions that must be answered in order to make the best decision for your situation. The most basic questions include:

• Can my existing brand be changed enough that a new brand will have unique qualities that will appeal to a separate group of consumers?
• Are these new qualities believable?
• How will the new brand impact my existing brand(s)?
• How will the new brand impact competitors’ brands?
• Will the cost of product development and promotion be covered by the sales of the new brand?

Brand Extension, Line Extension, Product Extension

The Differences between Brand, Line, Product Extensions:

Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. Organisations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name).

When done successfully, brand extension can have several advantages:

• Distributors may perceive there is less risk with a new product if it carries a familiar brand name. If a new food product carries the Heinz brand, it is likely that customers will buy it

• Customers will associate the quality of the established brand name with the new product. They will be more likely to trust the new product.

• The new product will attract quicker customer awareness and willingness to trial or sample the product

• Promotional launch costs (particularly advertising) are likely to be substantially lower.

While there can be significant benefits in brand extension strategies, there can also be significant risks, resulting in a diluted or severely damaged brand image. Poor choices for brand extension may dilute and deteriorate the core brand and damage the brand equity.

Product extensions are versions of the same parent product that serve a segment of the target market and increase the variety of an offering. An example of a product extension is Coke vs. Diet Coke in same product category of soft drinks. This tactic is undertaken due to the brand loyalty and brand awareness they enjoy consumers are more likely to buy a new product that has a tried and trusted brand name on it.

Line extensions examples are different variant of 7Up, Coke, Nachos, Dove soap etc.
Indian example is HUL's Wheel Vs RIN both which offer the same core benefit which is a washing detergent, but targeted at different segments.

This is where the confusion between line and product extensions occur, because under which area would you put a Good Night mosquito mat and a Good Night mosquito Liquid. They fall under the same core benefit, which is eradicating mosquitoes, but are different categories.

Yamaha music instruments and Yamaha bikes can be termed as Product extensions, since here each category, i.e. music does not leverage upon their presence in bikes and vice versa.

But if this is true, then Good Night would fall under Line extension.

Let the arguments continue..Do throw any more clarity on these three topics if available.