Sibling Brands,Multiple Objectives,and Response to Entry: The Case of the Marion Retail Coffee Market

Abstract

A new brand entering a market often finds itself in competition with sibling brands (those owned by the same parent company). In a case study of a retail coffee market, the authors examine how these brand relationships might influence the sibling and competitor brands’responses to entry. Using an empirically validated brand-share attraction model, the authors compare the actual responses to entry with the optimal responses under different incumbent objectives. The authors find that the responses by sibling brands are more accommodating than those of unrelated brands whose responses are consistent with the preservation of preentry levels of sales.