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    Market Challenger Strategies

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    Chinmoy Roy
    The document discusses market challenger strategies that firms use to increase market share and capture leadership from competitors. It defines market challengers as firms with strong reputations and finances that target market leaders or peers. Five main challenger strategies are described: 1) Frontal attacks match competitors on price, products, advertising and promotion. 2) Flank attacks exploit geographic or segment weaknesses. 3) Encirclement attacks surround competitors from all sides. 4) Bypass attacks broaden market share through new markets rather than direct challenges. 5) Guerrilla warfare uses intermittent conventional and unconventional attacks to demoralize competitors. Examples are given for each strategy.

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    Market Challenger Strategies

    Uploaded by

    Chinmoy Roy
    1K views3 pages
    The document discusses market challenger strategies that firms use to increase market share and capture leadership from competitors. It defines market challengers as firms with strong reputations and finances that target market leaders or peers. Five main challenger strategies are described: 1) Frontal attacks match competitors on price, products, advertising and promotion. 2) Flank attacks exploit geographic or segment weaknesses. 3) Encirclement attacks surround competitors from all sides. 4) Bypass attacks broaden market share through new markets rather than direct challenges. 5) Guerrilla warfare uses intermittent conventional and unconventional attacks to demoralize competitors. Examples are given for each strategy.

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    The document discusses market challenger strategies that firms use to increase market share and capture leadership from competitors. It defines market challengers as firms with strong reputations and finances that target market leaders or peers. Five main challenger strategies are described: 1) Frontal attacks match competitors on price, products, advertising and promotion. 2) Flank attacks exploit geographic or segment weaknesses. 3) Encirclement attacks surround competitors from all sides. 4) Bypass attacks broaden market share through new markets rather than direct challenges. 5) Guerrilla warfare uses intermittent conventional and unconventional attacks to demoralize competitors. Examples are given for each strategy.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views3 pages

    Market Challenger Strategies

    Uploaded by

    Chinmoy Roy
    The document discusses market challenger strategies that firms use to increase market share and capture leadership from competitors. It defines market challengers as firms with strong reputations and finances that target market leaders or peers. Five main challenger strategies are described: 1) Frontal attacks match competitors on price, products, advertising and promotion. 2) Flank attacks exploit geographic or segment weaknesses. 3) Encirclement attacks surround competitors from all sides. 4) Bypass attacks broaden market share through new markets rather than direct challenges. 5) Guerrilla warfare uses intermittent conventional and unconventional attacks to demoralize competitors. Examples are given for each strategy.

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    Market Challenger Strategies

    Definition: The Market Challenger Strategies are the marketing strategies adopted by the


    firms, either occupying the third or runners-up position in the market, to attack the leader or the
    immediate competitor with the intention to capture a greater market share and earn huge
    revenues.

    Generally, the market challengers are those firms, which have a good reputation in the market
    and enjoys a strong financial position. These firms target the market leader or the competitor at
    the same level with the objective, to reach the first position in the market or become an industry
    leader.

    Market Challenger Strategies


    The following are the general attack strategies adopted by the market challengers with a view to
    becoming a market leader and increase the market share.

    1. Frontal Attack: The frontal attack is the direct attack, wherein the market challenger
    matches with the competitor’s product, price, advertising, and promotion activities.

    The market challenger can even cut the price of the product, provided he convinces the
    customers that the quality is not compromised and is as good as the high priced products.
    E.g. Xiaomi adopted this strategy when it launched Redmi series smartphone on the market at a
    low price with the same level of the quality as that of other competitors in the market.

    2. Flank Attack: The flank attack means, attacking the competitor on its weak points. Here
    the market challenger determines the weak areas of the competitor in terms of two strategic
    dimensions i.e. Geographic and segmental.

    The challenger finds the areas where the competitor is under performing and then push its
    marketing strategies in that area. Also, the challenger spot the segments which the competitor left
    untapped and try to cover that segment through its products and services.

    E.g. L.G has successfully made use of this strategy by introducing the color TV “ Sampoorna”
    for the rural people and outshine the other colored TV players who had a less focus on these
    areas.

    3. Encirclement Attack: The encirclement attack means, attacking the market leader or a


    competitor from all the fronts simultaneously, it is the combination of both the frontal and the
    flank attack.

    Here, the market challenger launches several offensive campaigns i.e. surrounds the competitor
    with a varied brand and forcing the competitor to defend himself from all the sides
    simultaneously. This strategy is adopted to enjoy the long-term market dominance.

    E.g. The current E-commerce scenario is the best example of the encirclement attack where the
    E-commerce companies are ready to go negative in their margins to beat a competitor on
    turnover basis. They want to come on top and gain maximum customers by hook or crook.

    4. Bypass Attack: The bypass attack is the indirect attack, wherein the market challenger
    does not attack the leader directly, but broaden its market share by attacking the easier markets.

    The challengers can bypass the leader by following any of the strategies viz. expanding into the
    untapped markets, diversifying into the unrelated products, modernizing the existing product
    with the invention of technology.

    E.g. Pepsi adopted this strategy when it launched its mineral water brand “Aquafina” very well
    before the Coca Cola’s mineral water brand.

    5. Guerrilla Warfare: The Guerrilla warfare is the intermittent attacks imposed by the


    challenger to demoralize the competitor by adopting both the conventional and unconventional
    means of attack.

    E.g. The Pepsi and Coca-Cola follow this strategy aggressively with the intention to harass each
    other. When the Coca-Cola was the official partner of the world cup, the Pepsi counter-attacked
    it by using the punch line “Nothing official about it”.
    Thus, these are the major market challenger strategies that a firm may follow depending on its
    market position and the amount of resources held with the firm.

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