Branding Strategies- Fight, Flight or Freeze?
~Nisha Ghanshani
As children, we all have heard stories of great warriors who have battled many an enemy with their incredible valor. These heroes were glorified and even deified in some cultures. Such was the impact of the tales that even now as adults; most of us believe that fighting the enemy head-on is the noblest, most sensible and therefore the best thing to do in a stressful situation. In all these stories, there were also men who decided to remain motionless as they first assessed the perceived threat before reacting and still others who (probably wisely) took to their heels when posed with a threat. But none of these people were ever respected in any of the chronicles. This probably added to our belief that "bravery" was the best policy.
Reality check! People work differently in different situations. You too must have altered between fighting, freezing and fleeing depending on the situation. The dynamic marketplace too, requires this kind of flexibility from the marketers.
To illustrate this, let us consider three situations where the strategies of fight, freeze and flee will apply.
Situation 1
You have been a market leader in a particular segment. You have a positive brand image, occupy a distinctive brand positioning and have gained economies of scale as well as flawless proficiency in product/service delivery. Of late there has been an unprecedented influx of newer players in the field.
What do you do- fight, freeze or flee?
Answer- Fight. While you are the market leader quantitatively i.e. in terms of the sales figures, you also have the qualitative relationship you share with your consumers going for you. The economies you have achieved will help you pass on the monetary benefit of the same, to your consumers in terms of lowered prices-something which newer players will find difficult to achieve. However, do not indulge in a price-war unless your competition begins to do so first. This will ensure you don't lose market share. As far as the fighting to retain your consumers is concerned, aggressive brand building measures such as exalting the long relationship you have shared, focusing on lauding trusted quality and strengthening the existing positioning are likely to work.
Situation 2
Your competitor has come up with an unusual, extraordinary ad campaign out of the blue. The ad has excellent production values and even has a celebrity making it seem even slicker. Your agency is convinced the competitor's ad is "strategically sound" and that you must respond with an effective campaign of your own now.
What do you do- fight, freeze or flee?
Answer- Freeze. While knee-jerk, reactive advertising seems like the most natural thing to do, the fact is that the competitor's ad is one that has been based on a new concept. And new does not always mean good. There is no way to predict if the ad and its strategy will work with the target audience or not. The best thing would be to wait and watch how the market reacts to the ad. There is a possibility that the ad might work for the brand and there is another that it may not. If it does work with the consumers, you and your agency will now have gained insight into the minds of the consumers and will be able to react using this very insight as a weapon in your arsenal. But if the ad fails, you will still gain an insight into what will not work with the consumers for sure. Think of this opportunity as a costly experiment funded by your competitor's advertising dollars and whose results benefit you in every way.
Situation 3
You have recently entered a niche market, with a small consumer base but very little competition before you. You know that you won't be able to break even at least for the next 10 months. Suddenly, a Fortune 500 company enters your market, looking for a product extension.
What do you do- fight, freeze or flee?
Answer- Flee. Yes. Take to you heels. The Fortune 500 competitor not only has the expertise and money to brand extensively but it also advantaged as it is merely extending a brand, which is probably an established one. You on the other hand, have just set up your venture, have not broken even yet and therefore do not have the financial prowess to fight the giant. It would do you well to wind-up as soon as you can, because breaking even with such stiff competition is a niche market, seems implausible.
Lastly, the one thing to remember is that the best strategy is to not have a single strategy in the long run and to alternate between the ones available to you as per the demands of the situation. This will ensure flexibility in your business model as well as make it difficult for your competition to predict your next move.
[The picture used in this article has been taken from the photo library of stock.xchng.]
Other Articles by Nisha Ghanshani
Building Brand Equity | Branding Strategies | Brand Campaign | Branding Services | Brand Strategy | Branding and Marketing | Branding Agency | Building Strong Brands | Co-Branding | Identity Branding | Logo Branding | What Is Brand Equity? | Brand Equity | Brand Image | Brands