Brand Imitation

“BRAND IMITATION”

- SIDVIN S SHETTY

MEANING OF BRAND IMITATION
• A Brand Imitation is a product that borrows or
copies some special attributes of an famous or
leading brand, such as an name, shape or
color.
• These are those that are not identical but are
similar to
substance, nature, name, form, meaning or
intent to an acknowledged and widely known
product or service.

PICTURES REPRESENTING TO SHOW
“BRAND IMITATION”

KINDS OF IMITATION
1)Counterfeits or Product Pirates:

• Counterfeits are copies that carry the same
brand name or trademark as the original ones.
• It’s an attempt to rob the innovator of the due
profits.
• Counterfeits are strictly illegal.
• They trade on protected brand name or
Trademark of an established seller.

2) Design copies or Trade Dress:
• Design copies trade on the style, design or fashion
of an competitors popular product.
• In these instances where fashion is most important
than the actual design is been copied and some
engineering works which gives an slightly different
looks.
• Mainly done by following the market leader

.

3) Technological Leapfrogging:
• Firms that enter a growing market after an
innovator will be able to read the market more
accurately than the innovator solely because of the
passage of time.
• As, before entering the market, has better ideas and
responses to market situations, allowing the
imitator to “Leapfrog” the Innovator with an
superior Product.

.

4) Knock-offs or Clones:
• Because of sudden success of any firms or
companies not only they grow but also the clones.
• Clones are those which are to the original but they
carry different Brand names.
• Often clones are legal product of their own right.
• The absence or expiration of patents, copyrights
and trademarks makes many of them legal.
• Clones usually sell the same products at an much
lesser prices.

.

5) Creative Adaptations:
• They are also called as “ Creative Imitations”.
• They take an existing product and either improve
upon it or adopt it to new arena of competition

6) Adaptation to another Industry:
• Creative adaptation often takes the form of
recognizing the potential of an innovation
developed in one industry for use in another by
either using the same in an newer way or re-
inventing or upgrading

FACTORS AFFECTING BRAND IMITATION
1) Time:
• Time is an very important thing that would affect
the success of both innovators and imitators.
• In the case that the innovators are successful and
receive well responses from the market, the slower
the imitators can imitate.
• The faster the imitators can imitate the
innovations, the earlier the imitators can grab the
market share from the innovators

2) Legislations:
• The presence or absence of legislations to protect
manufacturing secrets or patents for innovation
affects the imitation process.
• Patents has an range of time specify and the
competitor’s cannot imitate in between time
periods legally.
3) Customer Demand:
• If there is higher levels of demand from the
customers and lower or lesser competition than
there would faster ways of imitations for such
products.

4) Suppliers:
• Suppliers that provide and spread raw materials
and critical technologies for the manufacture of
new products or services are another factor that
affect the speed of imitations.
5) Production Process:
• If the production process is simple and easy to
imitate, than the imitation can be faster.
6) Spread of Technology:
• The degree of how much and how fast the
knowledge of innovation can spread and be
obtained.

7) Environmental Uncertainty:
• Environmental Uncertainty is another factor that
affects the speed of imitation.
8) Level of IPR’s Protection:
• The level of IPR’s (Intellectual Property Rights)
protection also has negative relationship with the
speed of Imitation.
• For developing economies, the result of stronger
IPR’s protection is an reduction in knowledge flows
from the advanced countries and a lower rate of
innovative activity.

IMITATION STRATEGIES
• Imitation strategy is the strategy that not only
mimics the strategy of other companies but also
imitates its promotions and distribution strategies
• Imitation strategy is only used at the beginning and
if, companies continue to use for long-term than it
would be considered market follower and can never
become market leader.
• Imitation strategy is for minimizing risk of downside
loss associated with new entry

Imitation strategies are classified into four types:
1) Piracy strategy: Companies that perform this kind of
imitation strategy to sell products with the brand and
product design exactly the same so that the
counterfeit products are often called.
2) Cloning strategy: Companies using this strategy are
really imitate an existing product, but given the other
brands.
3) Mimics strategy: The strategy that mimics the design
or trade dress mentioned
4) Creative Adoption strategies: It is also termed as
disguise strategy, namely copying existing products and
developing or adapting to apply to the new
environment.

FIRST MOVER
• A first mover is the firm that takes an initial
competitive action in order to build or defend its
competitive advantages or improve its market
position.
• The benefits of being an successful first mover is
substantial. Especially in fast-cycle markets, where
changes occur rapidly and where it is virtually
impossible to sustain an competitive advantage for
any length of time.

FIRST MOVER ADVANTAGES
• The idea of the first mover advantage is similar to
that of the old adage, “The early bird gets the
worm”.
• First movers are also called as “Market Pioneers”.
• Being the first company to sell a new product may
provide an long lasting benefits, market
dominance and higher-than-average profitability
over time.

The Various Advantages are:-
1) First movers develop an cost advantage
• Being first to offer and sell an particular
product to an specific market means that the
first mover can begin the movement down
the “Experience curve”.
• An idea to produce large quantities and
reduce the cost of producing the products
using economies of scale and by trial and
error over time to improve products and
processes.

2) First movers face less competitive rivalry
.

• Although initially the new products get lesser
customers but if the opportunities is been properly
assessed the demand can grow rapidly.
• Though competitors will enter the growing market the
company would have established itself and would have
considerable amount of market share as well as brand
recognition.
3) First movers can secure important channels
• First movers have the advantage to select and develop
strong effective relationships with the most important
suppliers
• will act as an barrier when competitors enter the
market and would be forced to exit or go for inferior
channels of distribution.

.

4) First movers are better positioned to satisfy
customers
• The pioneers products would be positioned as an
higher brand in their minds because of supply of
augmented products to the market.
• High amount of brand loyalty and brand association
would be present.
• Customers would prefer and believe pioneers
products rather than new entrants.

.

5) First movers gain expertise through participation
First movers have the opportunity to :-
a) Learn from the first generation of products and
improve on the basis of product
features, manufacturing, product design etc
b) Monitor changing needs in markets and change in
trend because of participation and analysis of the
market
c) Build up networks, which can provide early
information’s of opportunities and threats in the
markets

IMITATION VERSUS LATER MARKET
ENTRY
IMITATION LATER MARKET ENTRY

Imitation implies copying, where the Later entry, in contrast, implies only
imitator consciously mimics the that the firm has entered the market
pioneer’s product after the pioneer, often with the
innovative product of its own
Imitators Implies later entry, lacking Later entry does not necessarily
the innovation of its own, the imply imitation. Often firms
imitator enters the market after the simultaneously but independently,
pioneers have entered and are pursue similar innovative products
successful, and imitates or improves
versions “inspired” by the pioneers

Firm rushes its entry to market Performs its own innovative product
after the innovator’s entry.

FREE RIDER EFFECTS
• The free rider effect is one in which outcome of an
action is such that, others are able to benefit from
the action without contributing to its cost, is
typically viewed as problem for those bearing the
cost of the action and an opportunity for those who
are able to benefit from the action.
• A firm bearing to be an market pioneer bears an
higher costs in market analysis, R&D, customer
research, sample study, pilot testing etc and literally
no costs for those copying the same.

• Whether the organization going for new product
.

assessment or development the marketer should
analyze what is the level of free rider effects the
organizations
• Later movers may be able to ‘free-ride’ on an
pioneer firms investments in a number of areas
including R&D, buyer education and infrastructure
development. Imitation costs are lower than
innovation costs in most industries.
• Innovators enjoy an initial period of monopoly that
is not available to imitator firms.

LATER ENTRANTS
• Later Entrants are companies that respond to a
competitive action, but only after considerable
time has elapsed after the first mover’s action.
• Although pioneers do indeed dominate many
markets, many later entrants have overtaken
pioneers. Such as:-
• Karl Benz invented the automobile, but Ford
Motor Company and General Motors took the
lead later.
• Star was the pioneer in safety razors, but Gillette
took over from the pioneer

BENEFITS OF LATER ENTRANTS
• A later entrant can take advantage of the
technological progress that has already occurred
and manufacture a product in the most efficient
manner based on learning from market.
• Switching benefits are one of the important benefit
of later entrants. Switching costs make subsequent
market entry more difficult, as the first movers
customers only change when the price advantage
exceeds their switching costs.
• The ability to free-ride on early-mover investments

• A late entrant has low risk of market uncertainty, as
there would be certain levels of understanding and
awareness about the benefits of an certain type of
products or service
• Flexibility and the resolution of technological and
market uncertainty

Brand Imitation

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