Positioning Brands Against Large Competitors to Increase Sales

Neeru  Paharia; Jill  Avery; Anat   Keinan

Article | Journal of Marketing Research (JMR)

Positioning Brands Against Large Competitors to Increase Sales

by Neeru Paharia, Jill Avery and Anat Keinan

Abstract

We explore the effect of having a large dominant competitor and show the conditions under which focusing on a competitive threat, rather than hiding it, can actually help a brand. We demonstrate through lab and field studies that highlighting a large competitor's size and close proximity can help smaller brands instead of harming them. We find that support for small brands goes up when faced with a competitive threat from large brands, versus when they are in competition with brands that are similar to them, or when consumers view them outside of a competitive context. This support translates into purchase intention, real purchase, and more favorable online reviews in a study of over 10,000 Yelp posts. We argue that this "framing the game effect" is mediated by consumers' motivation to express their views and have an impact on the marketplace through their purchasing.

Keywords: marketing; Brands; brands and branding; brand management; brand positioning; competitive positioning; Brands and Branding; Marketing; Marketing Strategy; Consumer Products Industry; Retail Industry; Food and Beverage Industry; Air Transportation Industry; United States;

Format: Print

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Citation:

Paharia, Neeru, Jill Avery, and Anat Keinan. "Positioning Brands Against Large Competitors to Increase Sales." Journal of Marketing Research (JMR) 51, no. 6 (December 2014): 647–656. (Lead article.)

Case | HBS Case Collection | January 2019 (Revised October 2019)

Glossier: Co-Creating a Cult Brand with a Digital Community

Jill Avery

Glossier’s proclaimed strategy was “born from content; fueled by community.” The digital-first, direct-to-consumer beauty brand had experienced rapid growth, with sales up 600% in 2017 and a customer portfolio that grew by threefold. But, its founder, Emily Weiss, was not complacent. Instead, she dreamed of creating the world’s first socially driven brand that inserted its community into the buying experience so that the company was merchandising people, their opinions, and their content, just as much as they were merchandising products. As her team debates marketing strategies for 2018, they recognize the opportunities and challenges associated with managing Glossier’s rapidly scaling brand community. While the community’s support had emerged organically in the past, the team was now debating whether the company’s next phase of growth would need to be fueled by a greater emphasis on paid peer-to-peer sales representatives, professional influencer marketing, paid media, and a physical market presence.

Keywords: Brands; brand management; brand communication; retailing; e-commerce; DTC; influencer; digital marketing; social media; Startup; internet marketing; big data; crowdsourcing; Marketing; Marketing Channels; Marketing Communications; Brands and Branding; Marketing Strategy; Entrepreneurship; Venture Capital; Consumer Behavior; Distribution; Growth and Development Strategy; Consumer Products Industry; Beauty and Cosmetics Industry; Retail Industry; United States; North America;

Citation:

Avery, Jill. "Glossier: Co-Creating a Cult Brand with a Digital Community." Harvard Business School Case 519-022, January 2019. (Revised October 2019.) View Details

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Positioning Brands Against Large Competitors to Increase Sales

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