TAILIEUCHUNG - Marketing management Chapter 11

CHAPTER 11 DEALING WITH COMPETITION. Building strong brands requires a keen understanding o f c o m p e t i t i o n , and c o m p e t i t i o n grows more intense every year. N e w compet i t i o n is coming f r o m all directions—from global competitors eager t o g r o w sales in new m a r k e t s ; f r o m online c o m p e t i t o r s seeking cost-efficient ways t o expand d i s t r i b u t i o n | 1 I IN THIS CHAPTER WE WILL ADDRESS THE FOLLOWING QUESTIONS 1. How do marketers identify primary competitors 2. How should we analyze competitors strategies objectives strengths and weaknesses 3. How can market leaders expand the total market and defend market share 4. How shoul d market c halls ngers attack market leaders 5. How can market followers or niche rs compete effectively CHAPTER 11 DEALING WITH COMPETITION . t u ichnci 5 require i kecm i iui sL . i ompcli tian and competition grows more intense every year. New compe- tition is corning from all directions -from global competitors eager to grow sales in new markets from online competitors seeking cost-efficient ways to expand distribution from private iabel and store brands designed to provide low-price alternatives and from brand extensions from strong megabrands leveraging their strengths to move into new categories. Consider how competition has intensified in the jeans market. pvl Strauss has seen its safes plummet from a peak of 7 1 Wton in 1996 to about 4 billion in 2003 in part because of fierce com- .----petition its Jeans brands exemplified by the classic 501 are being bit from alt sides above from trendy high-end designer fines such as Calvin Klein Tommy Hilfiger and GAP below from popular lower-priced private labels such as JC Penney s Arizona and Sears Canyon River Glues from one side by traditional entrenched brands such as the western Wranglers and urban Lee s and from another other side by hip youthful lines such as American Eagle Bugle Boy JNCO Lucky and Diesel Levi s is being hit from so many directions it is hard for the company to know in which direction to turn To better compete it recently introduced the Signature line to be sold at discount stores such as Wal-Mart and the more expensive Premium Red J Levi s competition Some of the many Drawls and styles of jeans. 342 PART 4 BUILDING STRONG GRANDS Tab line to be sold at upscale department stores such as Nordstrom end Neiman .

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