Tuesday, April 6, 2010

Flanking and Guerrilla warfare strategies...

Well both of these strategies are performed by players with small market share...
Flankers are generally attackers whose market shares are around 15%... The difference between the flankers and guerrilla's are that flankers operate close to their rivals but guerrillas attack by staying away...
For example US when GM and Ford enjoyed 80% market together, American motors came up with special convertible cars at a price close to rivals, attacking their territory...
Example of Guerrilla is Rolls Royce...Do you think any company like GM,Ford,Honda,Toyota would look into that segment as an category extension of their cars??? Definitely no..
Their segment is too narrow to risk...
Points to remember:
Flanking attack should be a surprise for others to defend..So companies need to avoid big test marketing..Other examples of flanking is Volkswagen small car concept by launching Bettle("Think small campaign") etc...

Guerrillas should never come too exposed and should never try to act like leaders...
Since their markets are small size they should never make big tycoons to feel that the segment being served is large or impressive...Brand extension should not be done(for example mercedes Benz deluxe @ 3 crores...)etc.
Guerrillas are more often found locally...They compete with national brands..like a chitalle bandhu(pune sweet shop) with big chains(if existed) etc.. Ramkumar

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