Should you launch a fighter brand?

Five tough questions for launching a fighter brand

# Cannibalization: Think about how thoroughly a fighter brand might cannibalize premium brand sales
- Case: Kodak vs. Fuji, Luvs(P&G) vs. Private lables

# Bury the competition: Check that you will be able to launch a fighter brand that is competitive enough to damage your enemy.

- Cases: Zocor MSD(Merck) vs. Generic drugs, Intel Celeron vs. AMD

# Financial losses: Check if the fighter brand is profitable enough to continue to so over the long haul.
- Cases: GM Saturn vs. Japanese cars, 3M Highland

# Missing the mark with customers: Make sure that the value equation b/w your two brands is suitably distinct in the mind of the customer
- United Ted vs. Southwest, Tesco vs. Aldi, Qantas vs. Virgin Blue

# Lost attention: Consider carefully the strategic implications of dividing your organization's resources during a period when focus and investment are critical.
- Cases: United, Delta, GM, P&G


Quotation
"The god of war hates those who hesitate." - Euripides, the Greek playwright

Source: Should you launch a fighter brand? HBR, Oct, 2009