Writer: Mohammed Ali, Brand Advocate, and Head of Marketing & Communications of Agricultural Development Bank (ADB) PLC
Like the beautiful game of football or a battlefield where an army protects its kingdom, there are “defenders and strikers” in brand or product portfolio management. This is regarded as critical because, in today’s fast-paced business environment, brand sustainability has become a top priority for companies seeking long-term success. Consumers are evolving, competition is intensifying, and businesses must continuously adapt their strategies to remain relevant. One of the most effective ways companies ensure longevity and profitability is through a well-balanced brand portfolio, leveraging two key assets; flanker brands and cash cows, otherwise called “defenders and strikers” (from a layman’s perspective).
Marketing scholars argue that sustainability in branding goes beyond environmental concerns; it is also about ensuring a brand’s survival, relevance, and competitive edge in the marketplace. This is where the strategic interplay between flanker brands and cash cows becomes crucial.
Flanker brands
They are products introduced by a company to target specific market segments without jeopardizing the integrity of its flagship brand. These brands allow companies to appeal to niche audiences, fill gaps in the market, and combat competition more effectively. Flankers serve as a flexible response mechanism, ensuring that customers have alternatives within the same brand family rather than turning to competitors.
For example, it is widely argued that Sprite and Diet Coke and is a flanker product among the Coca-Cola Company’s soft drinks category. In the automobile industry, the Lexus line of cars is regarded as the flanker brand Toyota initiated due to market erosion of the Toyota umbrella brand by other European Cars (Roth 1995).
Need for flankers in a competitive Market
Experts in brand management emphasize that flanker brands are not merely extensions of existing products but strategic tools designed to protect and expand market share. These brands help companies cater to evolving consumer preferences, whether through product differentiation, pricing strategies, or specialized offerings.
Consider a company operating in an industry with rising competition and shifting consumer demands. If it relies solely on a flagship product, it risks losing market share to rivals who introduce variations that appeal to different segments. By introducing a flanker brand, the company can preemptively address these changes, ensuring that consumers remain within its ecosystem. More so, flanker brands serve as a shield against price wars. They also attract new set of customers that are not served by existing products in the market. It is further argued that flankers protect a firm or business in situations where one of its brands fail, the other brand survives.
When lower-cost competitors emerge, rather than lowering the price of their premium product, companies can introduce a flanker brand at a more competitive price point. This strategy safeguards the prestige and profitability of the main brand while appealing to cost-conscious customers.
Cash Cows
Cash cows are the financial backbone of a brand portfolio. These are well-established products that dominate their market, requiring minimal investment while consistently generating high profits. Cash cows fund innovation, brand expansion, and new product launches, making them indispensable to long-term brand sustainability. The Coca Cola Company’s flagship beverage brand, Coca-Cola, is regarded as a classic cash cow, dominating the global soft drink market. Other brands likes Tide and Pampers are said to be the Cash Cows for Procter & Gamble which is one of the world’s largest consumer goods companies. The iPhone brand/product from Apple is yet another Cash Cow for the mobile phone industry.
The power of cash cows in brand longevity
While flanker brands are essential for market penetration and competitive defense, cash cows provide the financial stability necessary for a brand’s long-term survival. Marketing scholars highlight that these brands sustain businesses through economic downturns, allowing them to invest in research, development, and marketing without excessive reliance on external funding.
For instance, an established product with strong brand loyalty and consistent demand can generate steady revenue with minimal marketing spend. This income can then be reinvested in launching new products, strengthening distribution networks, or refining branding strategies. Without cash cows, companies may struggle to maintain their presence in highly volatile industries.
It is however worth noting that, while cash cows require less investment, they must not be neglected. Brands that fail to innovate risk becoming obsolete, as seen in industries where once-dominant players lost relevance due to changing consumer behaviors and technological advancements.
Achieving Balance: The Synergy Between Flankers and Cash Cows
Flankers and Cash Cows serve as a shield and fortress that represent the well-established, revenue-generating brands; the cash cows, while the agile warriors on the frontlines serve as the flanker brands. Together, they create a balanced defense that shields a company from competitors and ensures a steady stream of income. The most successful companies are those that understand the interplay between flanker brands and cash cows. A well-managed portfolio leverages the strength of cash cows to fund the agility of flankers, ensuring that a brand remains both profitable and adaptable.
A common mistake businesses make is over-relying on their cash cows while underestimating the need for market diversification. Conversely, excessive investment in flanker brands without a strong financial base can lead to unsustainable losses. The key lies in maintaining a strategic balance, using cash cows to sustain the brand and flankers to ensure its continuous evolution.
Sustainability Through Strategic Brand Management
It is important to note that flankers and cash cows exist within industries and are especially more intense in highly competitive sectors, including the financial sector. As a result, some scholars and brand experts argue that companies that adopt proactive brand management strategies will stand the test of time. Flanker brands provide flexibility and competitive resilience, while cash cows ensure financial sustainability. Together, they form a robust framework for brand longevity, allowing businesses to navigate uncertainties while securing their market position.
Some argue that flankers and cash cows evolve naturally, whilst others hold the view that their effectiveness and efficiency revolve around deliberate strategies from the onset. Can you identify flankers and cash cows amongst your company’s product and/or service offerings? How do they evolve?
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