Answer to Question #294810 in Marketing for Yashika Arora

Question

Britannia Marie Gold is facing severe competition in the markets where they were leaders. Due to entry of new players, the company has witnessed a decline in sales. The Marketing head has called for meeting along with the Brand Management team to discuss the way out to face the increasing competition.

a. What Line extension strategies would you suggest to counter the competition? Justify your answer.

b. Suggest an appropriate promotion mix for Britannia Marie Gold.

Answer 1

There are three strategies for establishing a competitive advantage: Cost Leadership, Differentiation, and Focus (Cost-focus and Differentiation-focus).

Cost leadership is a term used when a company projects itself as the cheapest manufacturer or provider of a particular product or commodity in a competition. It is difficult to deploy the strategy because the management must constantly work on reducing costs at every level to remain competitive.

Differentiation in marketing means creating specialized products that gain a competitive advantage with a particular segment of the market. In either case, differentiation makes a product or service more desirable to the target market.