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Industry: Email Alert RSS FeedBRAND PAPERS: The price is right?
Brand Strategy, December, 2004
Stephan Butscher and Balraj Kalsi explain how premium brands can use clever pricing and a two-brand strategy to expand into low-cost markets
Premium brand owners are introducing second brands or product lines to access the low-priced markets of Eastern Europe, Middle East Africa and Asia. Driven by heightened competition from low-cost Asian and Eastern European companies, the two-brand strategy is a smart move. Many leading companies including Intel (with Celeron), Bosch (with Neff) and Sony (with Aiwa) use carefully devised and highly tailored defensive two-brand strategies to great effect.
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