Brand defense is a tactic game. Perhaps the toughest one.
The overall goal is that of demotivating competitor attacks in order to defend market share and profit.
You can do so in a preventive or reactive manner. In both cases ask yourself whether it is worth the risk. Price wars can be very costly, not only in monetary terms.
When you must react to a price attack your very goal is to set back the competitor expectations. Focus your reaction on:
- Clients most sensitive to the competitor offer
- The incremental value under attack
- Geographic areas where the competitor has a high stake at risk
The story of Fuji launching a massive attack against Kodak in the USA is emblematic. Kodak didn’t defend their brand in the US. They attacked Fuji in Japan because Kodak knew Fuji couldn’t fight on both fronts. And Fuji withdrew their attack and it was a lesson learned for the future.