Creative Social points us to a campaign run by MasOportunidades.com, an Argentinian e-commerce website that is a great example of a challenger brand as made popular by Adam Morgan. Challenger brands are brands that are not necessarily market leaders but have the ambition to get there, making best use of their limited resources – an analogy often used is that of David vs. Goliath. MasOportunidades.com acknowledged that Mercado Libre (eBay’s Latin American partner) was way ahead of them, but slowly and steadily embarked on a campaign to wrest them of their lead.
Challenger brands have a range of strategies including targeting consumers at a micro level as opposed to an elevated level (early adopters rather than the majority), product trials and innovative displays. However, forging a relationship with the customer through story-telling is a key feature of most challenger brands. Because their budgets are usually significantly less, they choose their audience very carefully, forge an emotional bond with them – something that bigger brands often don’t do – and become known for upholding their values. Innocent is a good example of this sort of a brand. Method is another.
MasOportunidades.com’s campaign, that focused on associating their products with a story, (‘I broke up with my girlfriend and no longer need this so I need to get rid of it’, for example) resulted in a considerable increase in sales for the site, and succeeded in taking over a significant portion of the market previously dominated by Mercado Libre. Very simply, the idea was that products on MasOportunidades.com were not just products that people could make a bid for, they were stories that buyers could own and tell their friends about. This case study is a great example of this research done a few months ago, that showed that emotional campaigns are twice as likely to result in large profit gains than factual ones.
[Via Creative Social]