The effect of entrant brand's ownership on national brands' positioning strategies. (16th April 2018)

• Record Type: Journal Article
• Authors: Tyagi, Rajeev; Raju, Jagmohan
• Is Part Of: Managerial and decision economics. Volume 39:Number 4(2018)
• Page Start: 475
• Page End: 485
• Publication Date: 2018-04-16
• Subjects: Managerial economics -- Periodicals; Decision making -- Periodicals; Management -- Periodicals; 658.15
• DOI: 10.1002/mde.2919
• Languages: English
• ISSNs: 0143-6570

Abstract

Abstract : National brand manufacturers face the threat of new product entry from not only their traditional competitors (other national brand manufacturers) but also from their own customers (the retailer). We compare how national brands can limit the loss due to entry of these two types of entrants by positioning of their brands. Our results show that national brands position farther from one another when the new entrant is a store brand than when the entrant is another national brand. We also find that due to different positioning strategies of these two types of entrant brands—the entrant store brand positioning "in‐between" incumbent national brands whereas the entrant national brand positioning "away" from incumbent national brands—incumbent national brands may lose more from the entry of a weaker store brand than from the entry of a stronger national brand. Finally, we find that taking into consideration both pricing and product positioning decisions, consumer and social welfare are generally higher from store brand entry than from national brand entry.