Eating the Big Fish

1. Challenger brands must break conventions to stand out

Finding that strong reason is not easy: While there will be times a genuine product innovation precedes the creation of a brand (such as Dyson, or the blog aggregation tool that became Bloglines), more often now the concept for the brand precedes the notion of the shape and nature of the product.

Breaking conventions is essential. Challenger brands must identify and break category conventions to differentiate themselves from established players. This involves:

• Challenging representation conventions (e.g., naming, packaging, advertising)
• Breaking medium conventions (e.g., distribution channels, message delivery)
• Innovating product performance conventions
• Reimagining experience conventions

Examples of successful convention-breaking:

• Cirque du Soleil reimagining circus performances
• Innocent Drinks using conversational packaging copy
• Method introducing design aesthetics to cleaning products

By breaking conventions, challengers create a unique identity and offer consumers a compelling reason to choose them over established brands.

2. A strong brand identity is crucial for challenger success

At the center of the Lighthouse Identity is a belief-driven point of view about the world. And a point of view that we see evidenced in what brands do as well as say.

Lighthouse Identity concept. Challenger brands must develop a clear, strong identity that acts as a guiding light for consumers. This identity should:

• Be built on a rock-solid foundation (product truth or brand essence)
• Project a unique point of view about the world
• Be consistently communicated across all touchpoints

Key elements of a Lighthouse Identity:

• Intensity: Strong projection of brand values
• Salience: High visibility and memorability
• Emotion: Creating a strong emotional connection

Examples of strong Lighthouse Identities:

• Apple's "Think Different" philosophy
• Patagonia's commitment to environmental activism
• Virgin's irreverent, customer-first approach

A well-defined Lighthouse Identity helps challenger brands stand out and create a loyal following.

3. Sacrifice and overcommitment are necessary for breakthrough

One or two marketing actions are going to make 80 percent of the difference in the fortunes of the brand next year. The rest must be Sacrificed in order to make achieving these priorities possible.

Focus on key priorities. Challenger brands must be willing to sacrifice secondary objectives to overcommit to their primary goals. This involves:

• Identifying the 1-2 most critical marketing actions
• Eliminating or reducing efforts on non-essential activities
• Allocating disproportionate resources to key priorities

Benefits of sacrifice and overcommitment:

• Clearer brand message and positioning
• More impactful marketing efforts
• Increased likelihood of breakthrough success

Examples of successful sacrifice and overcommitment:

• Kodak EasyShare focusing solely on women as the target market
• Southwest Airlines sacrificing assigned seating for faster turnaround times
• Apple discontinuing successful product lines to focus on new innovations

By making tough choices and fully committing to key priorities, challenger brands can maximize their impact and achieve breakthrough success.

4. Challengers need to create symbols of re-evaluation

Challengers deploy icons and symbols, like the town of Wallingford lying down, specifically to prompt reevaluation. They create surprising, striking visual devices and events designed to puncture the consumer's autopilot—and at the same time to reflect and communicate what they are.

Disrupt consumer complacency. Challenger brands must create powerful symbols that force consumers to re-evaluate their assumptions about the category. Effective symbols of re-evaluation:

• Challenge dominant consumer complacencies
• Create surprising juxtapositions
• Communicate the brand's unique point of view

Techniques for creating symbols of re-evaluation:

• Dramatic visual metaphors
• Unexpected product demonstrations
• Provocative advertising campaigns

Examples of effective symbols of re-evaluation:

• Swatch hanging a giant watch on a skyscraper
• Apple's "1984" Super Bowl commercial
• Red Bull's extreme sports sponsorships

By creating compelling symbols of re-evaluation, challenger brands can break through consumer indifference and prompt reconsideration of their offerings.

5. Thought leadership is essential for challenger momentum

Challengers recognize, as Kodak did here, that in order to break through, their only currency with the consumer is going to be strong preference. If they achieve simply weak preference or parity preference, all the other attributes the market leader has on its side will swing the vote in its favor: ubiquity, social acceptability, salience, convenience.

Lead category conversations. Challenger brands must position themselves as thought leaders to gain momentum and preference. This involves:

• Identifying key areas for innovation and disruption
• Consistently introducing new ideas and perspectives
• Shaping industry conversations and trends

Strategies for achieving thought leadership:

• Producing original research and insights
• Hosting industry events and conferences
• Leveraging social media and content marketing

Benefits of thought leadership:

• Increased brand visibility and credibility
• Stronger emotional connection with consumers
• Greater influence on category evolution

Examples of successful thought leadership:

• Tesla driving the conversation on electric vehicles
• Airbnb redefining the hospitality industry
• Impossible Foods leading discussions on sustainable food

By establishing themselves as thought leaders, challenger brands can build strong preference and drive category innovation.

6. Challenger brands must be idea-centered, not consumer-centered

Challengers recognize, as Kodak did here, that in order to break through, their only currency with the consumer is going to be strong preference. If they achieve simply weak preference or parity preference, all the other attributes the market leader has on its side will swing the vote in its favor: ubiquity, social acceptability, salience, convenience.

Prioritize ideas over consumer demands. Challenger brands should focus on generating and implementing innovative ideas rather than solely catering to existing consumer preferences. This approach involves:

• Developing a culture of continuous ideation
• Balancing consumer insights with creative vision
• Taking calculated risks on new concepts

Benefits of being idea-centered:

• Greater potential for disruptive innovation
• Ability to create new consumer desires
• Stronger differentiation from competitors

Strategies for fostering an idea-centered culture:

• Encouraging cross-functional collaboration
• Implementing regular ideation sessions
• Creating a safe environment for risk-taking

Examples of successful idea-centered challengers:

• Netflix revolutionizing content delivery and production
• Dyson reimagining household appliances
• Beyond Meat creating plant-based alternatives to meat products

By prioritizing ideas and innovation, challenger brands can create strong preference and drive category evolution.

7. Maintaining momentum requires continuous innovation

Challenger brands can stumble, go stale, and/or plateau after initial promise—and the spotlight thrown by that initial promise makes their weakness all the more noticeable when it comes.

Sustain growth through innovation. Challenger brands must continually innovate to maintain momentum and avoid stagnation. This involves:

• Regularly refreshing product offerings and experiences
• Evolving marketing strategies and communications
• Exploring new markets and customer segments

Strategies for maintaining momentum:

• Implementing a structured innovation process
• Fostering a culture of experimentation and learning
• Staying attuned to emerging trends and technologies

Challenges in maintaining momentum:

• Balancing core identity with evolution
• Managing resource constraints
• Avoiding complacency after initial success

Examples of successful momentum maintenance:

• Amazon's continuous expansion into new markets and services
• Nike's ongoing product innovation and marketing campaigns
• Spotify's evolving content and feature offerings

By prioritizing continuous innovation, challenger brands can sustain growth and remain relevant in rapidly changing markets.

8. Challengers must embrace risk and maintain a challenger mindset

Being a Challenger is not a series of actions in and of themselves. It is a mind-set, a way of seeing the world, which is manifested in those actions.

Cultivate a challenger culture. Successful challenger brands must foster a mindset that embraces risk-taking and maintains a hunger for growth. This involves:

• Encouraging calculated risk-taking at all levels
• Maintaining a sense of urgency and dissatisfaction with the status quo
• Continuously seeking new opportunities for disruption

Key elements of a challenger mindset:

• Resilience in the face of setbacks
• Willingness to challenge industry norms
• Agility in responding to market changes

Strategies for maintaining a challenger mindset:

• Regular strategic reviews and goal-setting
• Celebrating both successes and learning from failures
• Fostering a culture of open communication and idea-sharing

Examples of brands maintaining a challenger mindset:

• Google's "10X" thinking approach to innovation
• Richard Branson's Virgin Group continuously entering new industries
• Under Armour's aggressive challenges to established sportswear brands

By embracing risk and maintaining a challenger mindset, brands can continue to grow and innovate, even after achieving success.

Last updated: July 29, 2024