Question

Topic: Strategy

Dual Price Branding - Need Success Stories

Posted by Anonymous on 2/23/2005 at 2:22 AM ET 125 Points
I am preparing for a business strategy session on how to tackle dual branding(by price)within a company.
I need cases which illustrate success in straddling both premium end and value end in terms of positioning, internal resources and channel management.
any examples would be appreciated- cases are specific to India would be great ..
I am not able to get hold of any details on the net for cases like- Toyota-Lexus..or Seiko & Alba etc
I need to wrap the presentation by Friday, So help pls!
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RESPONSES

  • Posted by Chris Blackman on 2/23/2005 at 4:22 AM Accepted
    Qantas www.qantas.com.au was being attacked at the low end of the domestic airline market by Virgin Blue www.virginblue.com.au so it decided to start its own low-cost carrier from a clean sheet.

    The resulting airline Jetstar www.jetstar.com.au allowed Qantas to focus on its full service, premium price end of the market, while Jetstar keeps the competing LCC carrier busy and cheap, i.e. margins are tightly squeezed.

    Thus Virgin Blue is hemmed in above and below, and now has to metamorphosise in some way to avoid becoming limited.

    Qantas is currently the world's most profitable airline.

    Hope this helps.
  • Posted by koen.h.pauwels on 2/24/2005 at 2:32 PM Member
    I agree on the BMW suggestion: compared to other luxury car manufacturers, it has a lot more competition from mass market brands given its focus on the 3-series entry model (The Harvard BMWfilms case shows this translates in lower loyalty numbers and a higher defection towards mass market cars). Therefore, it is crucial for them to defend and get new customers in at the low end, while keeping them at the high end. Their clear brand hierarcy (3-5-7) got them a long way, but the MiniCooper was a nice addition.

    Another recent case is Levi's entering Walmart (with Signature for about $17- choosing to use similar fabrics and logo but different name to avoid erosion higher-margin department store sales) and Neuman-Marcus (with vintage jeans over $200). Lots of news coverage (eg Wall Street Journal) on whether this is desirable and feasible.

    Hope this helps
  • Posted by koen.h.pauwels on 2/24/2005 at 2:34 PM Member
    Continuing the excellent airline examples, Delta's introduction of Song is a recent success story of operating a clearly distinguished low-cost carrier as a complement to existing service
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