Question

A brand leader is well-known and a "go-to" brand. Think: Crest. Toyota. Starbucks. A brand follower is one that enters the marketplace later, might be second in the industry, or is not as well-known as the industry leader. Sometimes, a secondary brand is less expensive than a more well-known primary or leading brand. Think: Colgate. Nissan. Dunkin.

Choose your favorite brand, and then answer the following questions:

Is the brand a leader or a follower?

As a customer, what factors do you assess to determine whether the brand is a leader or a follower?

What is the difference between the advertising or publicizing that a brand leader does in comparison to what a brand follower does in the marketplace to present itself to customers?

Answer 1

Customers can determine if a brand is a leader or a follower by considering market share, brand recognition, and history. Brand leaders like Coca-Cola have large advertising budgets that can discourage competition, while brand followers may need more innovative strategies to establish their presence.

Step-by-step explanation:

When assessing whether a brand is a leader or a follower, customers can look at several factors, such as market share, brand recognition, and the history of the brand in the market. A brand leader like Coca-Cola has a large market share, high brand recognition, and a long-standing history of dominance in the cola market. Customers may also notice that brand leaders often have large advertising budgets that serve not only to attract consumers but also to discourage competition.

A brand follower, like a lesser-known cola company, might enter the market following the lead of the brand leaders, and often their products are priced more competitively. Brand followers may resort to more creative advertising strategies to establish themselves, including targeting niche markets, emphasizing unique selling points, or employing brand ambassadors to create a more personal connection with potential customers.

Essentially, the difference in advertising strategies between a brand leader and a brand follower lies in the leader's use of their established position and larger budgets versus the follower's need to innovate and establish a foothold in the market.