What is a flanker brand?

• A. A brand used to compete on price.
• B. A brand that replaces older products.
• C. When a company introduces a new brand to serve a different segment of the market.
• D. A brand extended into a completely new product category.

Answer: (C)

A flanker brand is a separate brand launched by a company to target a different customer segment or price point than its main brand. It sits alongside the flagship brand in the company’s portfolio, not as a replacement, and is used to capture demand that the core brand might miss—often by offering a more affordable option or appealing to a different usage occasion. This helps defend market share against discount retailers and private labels while preserving the prestige and positioning of the primary brand. For example, a premium line might coexist with a separate, lower-priced brand that targets price-sensitive customers, instead of trying to push those customers into the premium brand. This approach differs from simply replacing older products or extending into an entirely new product category; it’s about broadening reach within the market while maintaining distinct brand identities.