The Strategy of Making Your Brand Your Top Competitor
For those of you who don’t want to pay a premium for a Lexus, you can buy a Toyota with the comfort of knowing that its quality and reliability will be just as good. Why? It’s because Toyota builds Lexus vehicles.
If you wish to be pampered on your next business trip or vacation, you can stay at Marriot’s Ritz Carlton. Marriot’s strategy in acquiring the Ritz Carlton brand was to manage an ultra-luxury hotel that would appeal to the wealthier traveler who doesn’t mind paying extra for second-to-none guest services and accommodations.
Brands like Toyota and Marriot that create their own brands to compete with in their portfolios is not at all a new concept. Adopting a brand architecture model where products are individually branded with little emphasis on the parent brand is a proven effective strategy. Kraft Heinz recently announced a similar strategy with its mac and cheese products. Now, consumers may either purchase Kraft’s traditional comfort-food packaged mac and cheese, or it’s premium Cracker Barrel branded mac and cheese for the more discerning and sophisticated mac and cheese connoisseur, which is emphasized by its executive-style packaging. This strategy will allow Kraft Heinz to compete with organic mac and cheese brands like Annies, which is owned by General Mills.
Whether you are in the manufacturing or service sector, consider what the benefits would be for your company if one of your competitors was you.