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MARKET CHALLENGERS ATTACK

STRATEGIES

Market challengers
A firm that has a market share below that of the market
leader, but enough of a market presence that it can exert
upward pressure in its effort to gain more control.
Market challengers are able to jockey for industry
leadership several ways: challenging the market leader on
price (direct approach), increasing product differentiation or
improving customer service (indirect approach), or
launching an entirely new product or service in order to
Companies
market
share are generally not in a
change the with
field low
(radical
approach).
position to influence prices, and are often susceptible to
the actions of larger firms. Market challengers, being in a
position of becoming the dominant player, may face a
high degree of risk because they must take potentially
radical steps in order to draw away consumers from the
market leader. Each of the three primary strategies
carries with it a unique risk, with the direct approach and
radical approach posing more risk due to the high

The different types of attack strategies

are :

Frontal attack
Flank attack
Encirclement attack
By pass attack
Guerrilla Marketing

FRONTAL MARKETING
Frontal attack is one of the marketing strategies
inspired by war tactics. Frontal attack involves a head
on attack on the competitor by matching the
competitor in all aspects product, price, place
promotion. For a frontal attack to be successful it is
believed that the player should have more than three
times the fire power of the opponent. The Cola wars
between Pepsi and Coke starting from the early 1900s
is an example of frontal attack strategies. McDonalds
Mccafes which are coffee joints are seen as a direct
frontal attack on Starbucks.

COKE AND PEPSI

COKE AND PEPSI are the two most identifiable brands in the
world and lead the soft drink industry, coke began in 1886
where as Pepsi started in 1893 as brads drink. Pepsi even
went bankrupt in 1923.Coke sells approx. 30 lakh cases
more than Pepsi in a day. Both have key marketing
strategies.

MARKETING STRATEGIES
COKE

Deeply rooted
History
Family
Santa clause
Polar bears

PEPSI

Britney Spears
Micheal Jackson
New generation
Youth and energetic

COLA WAR

Had only 20% of market share when it began competing

with coke who already had 80%. Went bankrupt twice.
Spent 1.6 billion on marketing and advt. coke spent 2.9
billion. Coke introducing new products in unision with Pepsi.
Coke is always a step ahead even when it launched C2.
Strengths co branded with itunes. 11.9% market in us.
Pepsi introduces Diet Pepsi when Coke introduces Diet coke.
Both have strength of product expansion and a diverse
product portfolio. So in a direct frontal attack, Pepsi also
launches a product in response to its market challenger
Coke targets more than one demographic. Targets 12 to 30
ages. Co branding helps to reach multiple demographics.

IMPLEMENTATION PROCESS TO BECOME NO.1

Focus more on soda sales. Coca-cola is number 1
in the soda market and in order to get ahead
Pepsi needs to surpass coke.
Put product in un-entered markets.
Should gain more followers on their social media
sites, consumers use social media everyday, and
being able to reach consumers so easily is a big
advantage for companies.

FUTURE OBJECTIVES
COKE
Already well established
Stay classic
Not target pepsi directly
Target socially responsible
PEPSI
Stay young
Keep updating
Stay energetic
Stay second best
Keep brand fresh

FLANK ATTACK

Attacking a weak position in the opponents force is

flank attack. Challenger identifies the weak areas in the
offering as well as marketing territories of the opponent
and attacks those areas. Market share gain in weak
territories is the objective, but the opponent is forced to
defend his share even in his strong territories and
products.
FLANKING FUNDAMENTALS

Avoid direct conflict.

Be stealthy.
Be strategic.
For one business to flank another, they do not have to
reinvent the wheel, so-to-speak, a new product or
adjusted product offering needs to be just different enough
to be able to capitalize on a market segment no one is
paying attention to.

MERCEDES-BENZ and CADILLAC

Mercedes-Benz utilized a flank against GM in the 1950s. They
wanted, like GM, to hold onto the luxury market for
automobiles, which at the time was dominated by the Cadillac
brand. By purposely pricing their cars much higher than the
Cadillac, combined with their marketing campaigns, they were
able to present the Mercedez-Benz to the market as a superior
automobile, clearly worth the premium price. This was no short
term strategy. This wasnt expected to change the market
overnight sales were slow to start which meant GM did not
respond quickly enough to the challenger. Several decades
later, the Mercedes-Benz is far outselling the Cadillac.
No longer. Cadillac is just another brand flanked by a
competitor with a superior strategy.

THE VODKA WARS

What Absolut did to Smirnoff, Grey Goose did to Absolut. By
pricing the brand 60% higher than Absolut, Grey Goose
created a new category which ultimately became known as
"ultra-premium" vodka.
Setting higher prices (or lower prices, for that matter) is just
one of the many strategies involved in building better
brands. But in many cases, it's a necessary strategy in a
branding program, or the new brand will never get off the
ground.
Other Types of Flanking Maneuvers

Low price
Small size
Large size
Distribution
Product form

ENCIRCLEMENT ATTACK

Theencirclement attackis a war strategy

adopted by the challenger firm intended to
attack the competitoron all the major
fronts.
Under this strategy, the challenging firm
considers both; the strengths and weaknesses
of the opponent and then launches the attack
simultaneously.
The firm does not leave any stone unturned to
overthrow the competition.

Customer orientation
Flipkart is ahead of Amazon in many areas,
but not when it comes to being customer
friendly.
This is where Amazon takes advantage.
Amazon invests in its customers from the
day One which most of the shopping
portals dont.
Amazon will instantly trade-off short term
profits for the chance to engender longterm customer loyalty and relation.

Quick Delivery
Amazon is a step ahead of Flipkart when it
comes to quick delivery.
Amazon has brought in same-day
deliveries and also next-morning delivery
for late-night orders.
On the other hand, many customers have
complained that they had to make
umpteen number of calls to Flipkart for
their orders to be delivered.

Increased Logistics
Amazon increased its logistics by a huge number
to accommodate their increasing number of
deliveries.
Flipkart on the other hand, could not handle their
orders. During Diwali, the co-founder Sachin
Bansal doubled up as delivery person to connect
better with customers.
Realizing that the customers love their orders
arriving soon, Amazon took advantage of Flipkart.

Flipkart's Big Billion Days and

AmazonsThe
Great Indian Festive Sale

According to reports, the two online portals

were in a neck-to-neck competition during
Diwali.
But Amazon won by a whisker; because of
some of its strategies mentioned above.
One more reason was that Flipkart made it
mandatory for their customer to use ONLY their
app.
Whereas Amazon kept their website as well as
the mobile app available for customers.

Guerrilla
Marketing
Guerrilla Marketingis an advertising strategy that
focuses on low-cost unconventional marketing
tactics that yield maximum results. The term was
inspired by guerrilla warfare which is a form of
irregular warfare and relates to the small tactic
strategies like ambushes, sabotage, raids and
elements of surprise used by armed civilians. Much
like guerrilla warfare, guerrilla marketing uses the
same sort of tactics in the marketing industry. This
alternative advertising style relies heavily on
unconventional marketing strategy, high energy
and imagination. It generally makes relatively
higher amount of impression than traditional
methods of marketing.

Types of Guerrilla Marketing

Viral marketing
Ambient marketing
Presence marketing
Wild postings
Tissue-pack advertising
Astroturfing
Alternative marketing
Experiential marketing
Live-in Marketing

A few examples

BIG BAZAAR

The largest hypermarket chain in India, launched in 2001,

with opening 4 stores in Kolkata, Indore, Bangalore and
Hyderabad. Currently with 214 stores in 90 cities. It was
founded by Kishore Biyani, mainly as a fashion format
selling apparel, cosmetics, accessories, and general
merchandise. Over the years it has included a wide range of
products and services, ranging from grocery to electronics.

BIG BAZAAR AND GUERRILLA

Big Bazar has launched new marketing strategy which is

based on Guerrilla Marketing. Corporate like Pepsi, Coke,
etc have been using the same for quite some time now and
the latest entrant is the our very own Future Group-BIg
Bazar, Pantaloons, Future Bazar, eZone are all part of this
group and they are taking on the biggies like Shopper Stop,
Lifestyle and Tatas Westside. In order to do the same,
Future Group has come up with 3 catchy and cheeky ad
campaigns which surely do catch our eyes and surely one
cant resist appreciating the same.
Keep West-aSide Make a smart choice!
Shoppers! Stop. Make a smart choice.
Change your Lifestyle. Make a smart choice

BIG BAZAAR STRATEGIES

Wednesday Bazaar - concept promoted as Hafte ka

sabse sasta bin. Mainly to draw customers on Wednesdays,
when least number of customers are observed. The aim of
this conept is said to be, to give homemakers the power to
save and make them feel as if its their day.
Sabse Sasta Din -To create a day in the year that truly
belonged to this chain of outlets. Launched on a Republic
day, the offer was such a hit that it was made to extend
upto 3-5 days on a few occassions.
The Great Exchange Offer - In 2009, Big Bazaar
launched an offer through which customer can exchange
their old goods for coupons, which can be redeemed to get
brand new goods.
T24 - Provides customers dual advantage to develop a
differentiated offering in the crowded telecom space and
also increase loyalty of customers. Customers are rewarded

CONCLUSION
Thus, overall, there are the above 5 market
challenger strategies which are used by any
company to defend their market and to challenge
competitors. The advantage of these strategies is
that it allows you to climb up the competitive
ladder and the strategies can change depending
on the competitor whom you are targeting.

Thank you