EXPRESS: Filling the Void: How Competing Brands Can Capitalize on a Brand Deletion

Brand manufacturers, big and small, regularly prune brand portfolios by deleting brands from categories. Competing brands try to fill the void, including sister brands owned by the same manufacturer, rival national brands, and private labels. This research examines which competing brands benefit from brand deletions, how these gains depend on brand- and category-level characteristics, and how brands adjust their marketing mix following brand deletions. A difference-in-differences analysis of 1,046 national brand deletions over 10 years across 201 US markets shows that deletions benefit private label revenue the most, followed by sister brands, and rival national brands the least, while category revenue does not fully recover. Competing brands gain more revenue when they have greater price similarity with the deleted brand, when the deleted brand’s pre-deletion market share is higher, and when the category is less concentrated. Post-deletion gains are strongly shaped by marketing mix responses, especially through distribution increases and, for sister brands, longer line length. However, regular price increases constrain gains, as does the limited use of relatively effective price promotions, and the extensive use of relatively ineffective feature advertising. On average, manufacturers retain 38% of deleted brands’ revenues through sister brands, highlighting risks of brand pruning.