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Note on Defensive Marketing Strategy

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Topic: Marketing Strategy

Sort Desciption: called defensive marketing strategy. Each year over a thousand new products ... years of defensive marketing strategy. Most of these insights are intuitive ...

Content Inside: M I T S L O A N C O U R S E W A R E > P. 1 Note on Defensive Marketing Strategy John R. Hauser There are many interesting aspects of the case on the Brita Products Company. Two of these issues are highlighted at the end of the case. First Brita learns that a retailer Target Stores has installed a display which compares alternative filtration products on their ability to remove contaminants from wa- ter. Brita does poorly on this comparison relative to PUR. Second Brita learns that Procter & Gamble has just purchased a controlling share of PUR water fil- ters with the implication that PUR will now be marketed by a firm that is known for its marketing expertise and resources. Responding to such threats whether they be new competitive products suddenly viable competitive products or repositioned competitive products is called defensive marketing strategy. Each year over a thousand new products are launched in the consumer sector alone and many times that number in the M I T S L O A N C O U R S E W A R E > P. 2 industrial sector. Many of these new products are perceived to be significant threats to highly profitable businesses. For example Johnson & Johnsons Tylenol brand of analgesics once dominated the over-the-counter market for pain relief. 1 Tylenol had gained this position through a long series of marketing actions that established it as effec- tive with low side effects. Tylenol based on acetaminophen was clearly per- ceived as much gentler than other products such as Bayer and Anacin which were based on aspirin (possibly with caffeine) and Excedrin which combined aspirin acetaminophen and caffeine. However in May of 1984 the ingredient ibuprofen became available to all manufacturers for over-the-counter use. Ty- lenol faced threats by new analgesic products such as Advil (American Home Products) and Nuprin (Bristol-Myers). The questions at the time were: should Tylenol emphasize its brand DNA of gentleness or should it counter w ...

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