Eating The Big Fish

“How does a small fish thrive in a sea filled with big sharks? By playing a different game altogether.”

1. Challenger Brands Can Compete Through Creativity

Being second or third in the market doesn’t mean defeat—it opens doors for inventive strategies. Challenger brands don’t have the resources of brand leaders, so they must find unique ways to capture consumers’ attention without taking the traditional, costly route.

Companies like Avis have shown how to compete effectively. Avis, a small player in the car rental business compared to Hertz, adopted the tagline "We Try Harder." This direct acknowledgment of their underdog status resonated with customers and turned their perceived weakness into strength.

The power of creativity also lies in finding a unique angle. When a company cannot compete on price or reach, a new narrative can shift the playing field. For example, niche brands often transform their smaller size into an appeal for quality or locality, creating value that customers want to support.

Examples

• Avis turned their second-place status into a unique selling point with their “We Try Harder” campaign.
• Local coffee shops often compete with Starbucks by emphasizing ethically sourced beans and a personal touch.
• Ben & Jerry’s built its identity by focusing on ethical practices and fun flavor names to distinguish itself from corporate ice cream brands.

2. Distracted Consumers Need Fresh Approaches

People’s attention spans are shrinking in today’s busy world; challenger brands looking to make an impression need to do so quickly and memorably. Advertisements and campaigns now compete against cluttered phone screens, constant digital notifications, and a fast-paced environment.

To capture attention in this hectic marketplace, it is not about being louder; it’s about standing out in a way that feels authentic and personal. For instance, innovative packaging design or experiential campaigns can build curiosity and pull people out of their routines.

Additionally, understanding consumers' emotional state is key. If they’re stressed or distracted, offering giveaways or enjoyable humor could be more effective than relying on dry information. Compelling emotion-first messages appeal to customers in ways traditional ads may not.

Examples

• Coca-Cola’s “Share a Coke” campaign personalized soda bottles with customer names, bringing excitement to a common product.
• Wendy’s creative, sometimes snarky Twitter strategies connect directly with social media users.
• Energy drink companies like Red Bull draw attention through extreme sports and live events.

3. The Blurred Lines of Product Categories Present Opportunities

Traditional product categories are fading. Customers use products across multiple contexts, and businesses must adapt to how consumers define usage. This trend offers challengers the flexibility to shape their brands for multiple categories.

For example, Apple’s iPhone blurred the lines between phones, cameras, and small computers, redefining multiple industries. Smaller brands can also innovate like this, figuring out how their products overlap with others and marketing them accordingly.

By observing how consumers repurpose products, challenger brands can identify potential rebranding or market expansion opportunities. Offering solutions to unexpected challenges can make a product seem fresh while reaching people in new spaces.

Examples

• Apple’s iPhone dominates not just as a phone but also as a high-quality camera alternative.
• GoPro cameras became popular tools for adventure-seekers, moving beyond niche videography equipment.
• Social platform Pinterest doubles as a search engine and brainstorming space for DIY projects.

4. Adopting a Mindset of Intelligent Naivety

Sometimes, a lack of deep expertise is a gift. Challenger brands, often newcomers, can see the market with fresh eyes and ask questions that established companies overlook. This outsider perspective leads to unexpected solutions.

The cleaning brand Method epitomizes this idea. Founder Eric Ryan had no cleaning industry experience but questioned why cleaning products couldn’t also look stylish. This brainstorming led to hip, well-designed bottles that disrupted the cleaning aisle.

Curiosity can set these brands up for success. Questioning longstanding norms yields ideas that feel revolutionary to customers, giving fresh life to tired categories.

Examples

• Method’s design-forward cleaning products stood out despite fierce competition from older brands.
• Airbnb, founded by individuals outside the hospitality field, asked why people couldn’t rent out their unused spaces.
• Square revolutionized payment methods by asking why small vendors couldn’t accept credit card payments easily.

5. Building Emotional Relationships with Consumers

Successful brands go beyond providing products; they aim to build emotional bonds with customers. Challenger brands achieve this by expressing strong, genuine values.

For example, the shoe company Camper aligned itself with the concept of slow living, urging customers to “Walk, don’t run.” This philosophy clicked with consumers frustrated by the speed of modern life, putting Camper not just on their feet but also in their hearts.

Aligning with a larger ideal or mission creates not just loyalty but advocacy. Customers who identify strongly with a brand are more likely to share it with others.

Examples

• Apple’s minimalist and creative identity resonates strongly with artistic-minded consumers.
• Patagonia doubles down on its environmental activism, earning a devoted following among eco-conscious buyers.
• TOMS created loyalty through its promise of donating shoes with each purchase.

6. Habits Can Be Disrupted by Bold Moves

Most customers shop on autopilot and rarely rethink their favorite products. Challenger brands break these habits with strong symbolic gestures or associations that encourage re-evaluation.

Target turned its image around by working with elite designers and staging unexpected fashion campaigns in art museums. This repositioned them as trendy instead of just budget-friendly, leading consumers to take a second look.

Being bold doesn’t mean over-the-top theatrics—it’s about creating moments that make consumers pause and consider a new perspective.

Examples

• Target’s design collaborations reinvented its image as a stylish, affordable retailer.
• Dove’s “Real Beauty” campaign encouraged customers to challenge beauty standards.
• Taco Bell disrupted breakfast offerings by contrasting their fun branding against McDonald’s.

7. Limited Resources Are a Strength

Challenger brands often have tighter budgets than monolithic corporations, but this limitation fuels creativity and sharper focus. By identifying the most effective strategies, these companies make every decision count.

This targeted approach brought success to Red Bull. Though it doesn’t compete with Coca-Cola in resources, Red Bull focuses tightly on its brand of energy and adventure, creating a loyal base.

Knowing what to cut—whether ad campaigns or product lines—can make a big difference when resources are lean.

Examples

• Red Bull’s association with extreme sports allows it to dominate a niche audience.
• Dollar Shave Club focused on viral content rather than expensive campaigns to spread its message.
• Warby Parker simplified eyewear shopping with direct-to-consumer online sales.

8. Effective Branding Grows into a Movement

Strong challenger brands aim to do more than sell products—they inspire movements. This involves deeply committed messaging paired with actions over time.

Nike is perhaps best known for its “Just Do It” philosophy, which reflects more than sportswear. Challenger brands can emulate this approach by consistently living up to their values and winning over long-term customers.

A movement gives brands staying power—turning sporadic sales into a devoted community.

Examples

• Nike’s campaigns regularly appeal to triumph over adversity, inspiring people beyond athletics.
• Lululemon builds a culture of wellness and self-improvement through its products and community classes.
• REI’s ##OptOutside campaign urges customers to reconnect with nature rather than shop sales on Black Friday.

9. The Power of Consistent Identity

Maintaining a clear, bold identity can make smaller brands unforgettable. A lighthouse identity helps companies stand out when customers feel overwhelmed by choices.

By continuously reinforcing their values or aesthetics, these brands create touchpoints that linger long after the initial encounter. Camper’s “walk, don’t run” message is one example, as is Apple’s unmistakable sleek design.

Consistency ensures that customers know what your brand represents, keeping it accessible even in crowded markets.

Examples

• Apple’s sleek and minimalist branding is instantly recognizable.
• Patagonia’s emphasis on environmental responsibility informs all their marketing and design.
• Harley-Davidson’s rugged, freedom-centric image appeals deeply to its niche motorcyclist audience.

Takeaways

1. Identify one bold move or symbol to wake up autopilot consumers and shift their view of your category.
2. Use limited resources wisely by narrowing where time, money, and energy go—focus effort on two key actions.
3. Relentlessly reinforce your values so customers can easily build long-term trust and emotional loyalty with your brand.