Challenger Brands Must Leverage Strengths in Down Economy
Fast-growing companies have unique advantages in this down economy. I’ve talked to several small businesses that said they have been pretty busy over the last couple months. Understandably, they are being cautiously optimistic about their future prospects and ensuring they are focused on their strengths.
Here are the four most important areas I see to take advantage of your strengths and gain market share (let me know if you have any to add):
Leverage Lower (or more flexible) Cost Structure - Offer customers and prospects more value by giving them only what they need. Repackaging services or products into forms that are more bite size for cash strapped consumers. Being the discount provider may not be the answer long-term, but ask yourself if you can restructure your offering in a way your larger competitor can’t to make it more appealing.
Focus On Your Niche - Now is not the time to be supporting products or services that do not play to your strengths. Growing companies can develop a narrow niche. Then when things turn around begin to grow your offerings. This gives you the opportunity to develop a great reputation at what you do best during the downturn.
Connect Emotionally - Consumers are using their “gut feelings” more than usual. They want to feel better about the consumer choices. Make sure your communications are inner directed and about getting back to what is important. Growing companies have the opportunity to be more personal than their big competitors. You can deliver a story that your competitors can’t.
Less Bureaucracy Means more Innovation - Growing companies should be closer to their customers than their large bureaucratic competitors. That means you can obtain new data, and put it to use quicker and more efficiently to align with new opportunities. Don’t slow down your efforts to investigate new opportunities just because your business has slowed down. Let your competitors do that.
Stumble Upon
Del.icio.us
Buzz
Nice one Brendan, especially the bit about ‘gut feel’, which also seems to be spreading as a ‘concept’ amongst marketers making decisions about hiring agencies.
So, for Challenger marketing agencies, here’s a few more strengths I thought could be leveraged:
- Senior Do-ers
Our work is (probably) undertaken by senior staff who own/run the agency and who got sick of just managing and wanted to get back to ‘doing the do’. That willingness to stick doing what they’re best at (not becoming a manager) and get their hands dirty means clients get people who can get up-to-speed quickly and do the work not just quicker, but better.
- Speedier Than Usual
We’re always going to be faster than the lazy big (and medium) boys/girls. Always.
- Common Sacrifice
We’re happy to sacrifice income if it’s the wrong idea for the client. We won’t recommend things that anyone can own just because we’ve got some great deal with a media owner/whoever. Clients will usually reward honest advice with loyalty…and if they don’t, do you really want to work with them?
- Fun
We tend to want to do stuff that’s different - it’s not just right for the client but, dammit, it’s going to be fun for us to learn and do! Scary at times, but fun.
I also think it’s worth noting - just from personal observation - that it seems most Challenger Brand-focused marketing clients are actually quite keen to work for themselves now/one day in the future, so they look increasingly benignly at Challenger agencies…or is that just me?
Anyway, Im going to keep touching lots of wood every day…!