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What is a brand challenger?
A brand challenger is a company that is rapidly evolving due to high ambitions and a clear mission. Such brands do not hold leading positions in the market but often achieve this over time. They position themselves as an alternative by offering revolutionary approaches to existing products and services, aiming to change not only the industry but the world as a whole. The name comes from the English word "challenge," which means "to challenge." Each brand challenger questions existing norms in one way or another, and less frequently, specific competitors.
For example, the company Xiaomi started as a brand challenger, advocating for accessible technology for a broad audience. Uber was also a challenger that took on the traditional taxi industry, quickly becoming one of the leaders in many countries. The mobile operator Yota, in turn, is fighting against unclear tariffs and opposing the opaque pricing policies of other operators.
Key characteristics of a brand challenger
Although brand challengers do not always start with an outstanding product or service, they identify "pain points" and offer more effective solutions. Here are several key characteristics that unite such companies:
- Clear purpose and values. A brand challenger openly declares its principles, which form the foundation of its operations, including marketing messages and corporate culture. For example, the energy company Bulb from the UK provides customers with electricity from 100% renewable sources.
- The ability to tell a story. Storytelling helps strengthen the connection with the target audience and attract customers away from major market players. Good stories make products more desirable.
- Authenticity. Brand challengers strive to be closer to their customers, avoiding excessive "glossiness." For example, American Eagle used models with disabilities in its advertising campaign.
- Community building. They know how to form a community of like-minded individuals around them that support the brand and its values. This also aids in promotion through social networks.
- Focus on marketing. Strong branding and active marketing strategies allow them to convey their mission to the target audience. Brand challengers often participate in offline activities for direct interaction with customers.
- Big ambitions. Challenger companies are not satisfied with small achievements. They aim to reach significant goals even with limited financial resources.
Types of brand challengers
In their book "Challenger Brand: 10 Ways to Tell a Challenger Brand Story," Adam Morgan and Mark Holden identify several types of brand challengers:
- Missionary. A brand that aims to change injustice in the world, such as Huit Denim, which revived denim production in its city.
- Humanist. A company offering personalized service, like Zappos, which seeks to create an emotional connection with customers.
- Company of the future. A brand that questions the relevance of market leaders, such as Impossible Foods.
- Free thinker. A provocateur that entertains consumers, like the betting company Paddy Power.
- Defender of the common people. A brand that stands up for consumer interests, such as "Dodo Pizza."
- Democratizer. A brand that helps a broad audience access products, as Zara did.
- Conservative Enlightener. A brand that opposes consumerism, like Vitsoe.
- Bold underdog. A brand that openly confronts the market leader, like the app Bumble.
- Visionary. A company that gives new meaning to its product, like Starbucks.
- Game changer. A brand that redefines the industry, like "Tinkoff Bank."
Conclusion
Watching challengers is quite interesting, as they often conduct bright and creative marketing campaigns. These companies, lacking large budgets, create unique ideas for promoting their products and services that can be used in one's own strategies. Brand challengers inspire innovation and help change market perceptions.