How do Challenger brands disrupt?
Challenger brands have scale, resources, trust, legacy all stacked against them. So what do they do against such odds?
The answer lies in Disruptive Innovation, Thought Leadership and Lack of greed.
They could take the Leader head on or
- Be content with carving out a niche and expanding it.
- Segment a Category basis Benefits/Needs/Platforms sought, or basis Lifestage and address an underserved Market even if it means less scale.
- Segment basis Price, Geography- India/Bharat or Region- NEWS, Distribution Channel, variables.
- Bring in a Product, Packaging, Price, Proposition discontinuity.
An example- Of Platform Segmentation by a Regional Challenger.
In 2009, Parachute coconut hair oil was and still is generic to the coconut oil Category in the South- a dominant Leader. Dabur amla hair oil, a niche player operated on the fringes with single digit usership, volume share.
The Coconut oil Category is segmented on the Platforms of Nourishment, Hairfall control, Non stickiness, Fragrance, Dark black hair, Problem free hair. These are the Need states it satisfies.
There were 2 options –
– Take the Leader head on, on the platform, Nourished strong hair with amla oil goodness
– Or address a niche
6 monthly Brand track researches revealed Dabur amla enjoyed a relative strength (Basis normalisation of image scores) on the statement
- Makes hair black, vs coconut oil
(Driven in part by the belief of South in ayurveda and its nutrition)
Dark, black hair was relevant to a sizeable audience albeit those among them who believed coconut oil was inadequate on the same was niche. The decision yet was made to play in a smaller pond.
The strategy was fortified with Branding since ‘Amla’ was North Indian nomenclature. Known as Nelli in Tamil Nadu, Dabur Amla was rebranded
- Dabur Amla Nelli Hair Oil.
Creative routes on the lines of –
– Black is beautiful
– The Blackest black
were put into quantitative LINK research test to measure the power of the BLACK NOURISHED HAIR proposition to drive Trial and convert non users(Drive New News) and the strength of creative to break clutter, Engage and brand.
Authenticity and Slice of life was injected into the Narrative with a Claim, Superior to Coconut Oil rooted in the setting rather than relegated to the product window. This meant staying away from classical generic constructs yet being on brief, engaging, distinctive and well branded.
South celeb, Sneha was signed on.
To see the ad
https://www.youtube.com/watch?v=phnFMiXmsHE
Sales growth increased to 2.5X- 25% growth vs historical 10% growth.
Creative leap credit to Suguna, Ogilvy South Creative/Planning and credit to the Leadership team at Dabur for approving Strategy and enabling Execution.
By Ajay Motwani – (A seasoned Marketing consultant with IndusGuru Network Partners – a curated platform of independent management consultants)
Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of IndusGuru Network Partners