Brand Competition


The closeness of competition between brands within a market is indicated by which other brands a brand shares it customers with, over repeated purchases

Key Findings

  • Competition means running hard to stand still. With intense competition, the outcome of marketing activity is therefore usually a more or less competitive equilibrium rather than gains for any or all. Hence a successful outcome is maintenance of one’s sales and the reinforcement of one’s loyal customers.
  • Brands compete practically head-on with every other brand in the market.
  • Brands compete as if they are practically identical alternatives; differing in popularity.
  • A brand shares customers with rival brands in line with their size. In any time period, a brand shares much of its customer base with the bigger rival brands, and a little with the smaller brands.
  • Partitions exist, where brands share a bit more than expected, but these are rare and usually based on functional differences e.g. sweetened (i.e. kids’) cereals; diet soft drinks etc.