In today’s environment of entrepreneurship, stewardship and broader access to consumers, the opportunities for challenger brands have perhaps never been higher. These often smaller yet ambitious brands aim to disrupt industries dominated by established players, taking on the challenge of standing out and winning consumer preference.
However, when competing against entrenched players with established brand loyalty and broad visibility (and often deeper pockets), challengers must be bolder, crafting unique strategies to capture the audience.
This two-part blog series will highlight past challengers and the inventive strategies used to break through and carve out space in such environments.
Part I:
- Proffer a Better Brand for a Better World: Enter with products offering superior features layered with an altruistic element.
- Challenge the Status Quo: Move consumer choice and ignite a revolution of new standards within a category.
- Bring Next Gen Excitement: Introduce new options that swiftly respond to emerging consumer tastes and trends.
Part II will reveal how innovations in service, value, or positioning can also succeed.
Proffer a Better Brand for a Better World
These challenger brands introduce products that are positioned as superior in some aspect while also benefiting the planet or communities at large. Clear communication is essential in these cases, as it’s important to introduce both the brand and the cause effectively while also building consumer connection to the cause.
In “1 Million Pairs of Bombas Socks Donated,” Bombas achieved excellent results by describing the brand’s origin and its philanthropic “purchase one, donate one” commitment. Messaging highlighted both the importance of a pair of socks to the homeless population and product ‘failures’ the Bombas design fixed.
Sparking “Rare” levels of Empowerment, the over three-minute ad ranks in the top percentiles of apparel & footwear ads (since 2010) – while also triggering 79% consideration (+31 pts vs category norms).
Despite a long length, Bombas conveyed its point of difference and connected with consumers in a very meaningful way, achieving 73% unaided brand recall.
Introducing minimalist design and natural, sustainable materials consumers could feel good about, Allbirds followed a similar brand strategy as Bombas. Seventh Generation broke through with its commitment to eco-friendly cleaning products in a typically unemotional category.
Challenge the Status Quo to Drive New Behavior
These challenger brands aim to disrupt entrenched industries by introducing innovations that transform past habits and change consumer behavior. The innovations must be so impactful – and communicated or demonstrated so effectively – as to convince viewers that a new way is, in fact, the better way.
Though eventually boosted by Covid-19 lockdowns, Peloton began promoting its at-home spin classes as a superior experience—offering a strong sense of community without the hassle, cost, and crowds of in-person classes.
The brand’s 2016 minute-long “This is Peloton” promised viewers a way to change their lives from their homes, also conveying the bike’s features, rider community, instructor quality, and the convenience of anytime workouts.
The novel concept convinced 54% of viewers across age/gender to consider making that lifestyle change (outpacing norms by +14 points), with 73% consciously attaching that message to Peloton.
“This is Peloton” ranks among the top health & fitness ads in breakthrough, Information, and Change (the latter two especially key to this challenger approach).
In the thirty-second “Not Beginner’s Luck” Lucid Motors wove Cinematic* visuals of its Air model in Arresting* locations with classical music to convey the Upscale* nature of the vehicle. Text overlays informed on key specs of horsepower and range while voiceover called out the brand’s electric innovation, performance, and design.
73% of the higher-income audience remembered the Lucid brand, with 60% reporting increased interest in exploring the new EV (exceeding the lux auto average by +16 points).
Touting the model’s 2022 MotorTrend Car of the Year win, the creative demonstratively set the vehicle apart on performance, drawing top viewer response across political lines in the luxury auto category.
Ruggable made waves when it introduced fashionable rugs that could be routinely washed in standard home washing machines.
“Make Your Own Rules” mastered the art of direct Information delivery, with viewer comments confirming that Ruggable’s washable feature was well understood. While perhaps not as creatively entertaining as earlier brand ads, strong comprehension of the product itself resulted in consideration (55% of all viewers) that outshone other retail ads by +8 points.
Bring Next-Gen Innovation to Fruition
Next-Gen challenger brands drive innovation in an established category by pouncing on emerging trends, often bearing the workload of encouraging a wider set of consumers to trial. Consider the move to plant-based food, non-alcoholic beverages, and travel stays in private homes. To be most effective, these challenger ads must take care to present emerging trends as applicable to many. Storytelling can allow consumers to picture themselves as part of the trend.
Key to changing behavior is addressing the discomfort and concerns that hinder people from adopting new approaches, which Airbnb masterfully did in “Never a Stranger” – while challenging the relevance of hotel stays for modern times.
This minute-long ad flipped the script from the ‘craziness’ of staying in someone else’s home to the benefits of an assumable local connection. In a Soothing*, Likeable style, it highlighted the chance to visit “over a million homes around the world.” While not all viewers found it equally relevant, many leaned into the concept, with 74% recalling Airbnb.
Breaking into a soda market dominated by big brands is daunting, but Poppi made its mark by capitalizing on the emerging better-for-you trend.
With Colorful* opening scenes of phone texts, the 2023 “The Twist” excitedly referenced the trend’s appeal while voiceover and visuals shared nutritional facts that set the product itself apart. Two in three viewers (+15 points over the average soda ad) were more likely to try the brand upon seeing the thirty-second ad, with consumers appreciating the opportunity to go ‘back’ to soda.
To win over alcohol drinkers with the appeal of its non-alcoholic brews, Athletic Brewing cleverly integrated itself into situations where alcohol traditionally wouldn’t fit and well beyond designated drivers, boldly branding itself as “Fit for All Times.”
Without mentioning flavor, calories, or carbs, Athletic Brewing captivated beer and other alcohol drinkers in an engaging, memorable way. Over half of the audience reported being open to changing their habits.
Part I of this series reviewed challenger brands disrupting with new products and features, often encouraging consumer behavioral change. Regardless of the marketing approach taken, challengers must quickly establish a point of difference or risk an irrelevant or redundant perception. Creative testing can significantly improve challenger success when first impressions are paramount.
Stay tuned for Part II to learn how brands bringing innovation in service, value or positioning can find success.
*Indicates one of the 57 emotional reactions iSpot Creative Assessment measures for every video ad.