Insights
Thriving in the shadows of giants: How small brands can shine
In the world of business, small brands can still flourish when competing against larger, more established corporate players, says Ashgrove’s Terry van Rhyn.
Although I have enjoyed working on large international brands during my advertising career, it is always the small brand with no hope against the big boys that got my creative juices flowing.
When I started out in the early ‘80s as owner of a small design studio, I found my niche in a very competitive and crowded marketplace. After a few mergers and collaborations, we became a larger ad agency but still small compared to the multi-nationals.
I’m not sure if we “sold out”, but in the early ‘90s my partners and I sold our ad agency to the mighty (at the time) Young & Rubicam. My natural environment has always been in a world that I can control and not in the big corporate sausage machine of advertising. So, after my contract was fulfilled, I naturally gravitated back towards the world of SME.
Over the years, I have started several businesses, both in the US and in the Isle of Man, and the thrill of walking this SME tightrope is what puts a smile on my face.
More recently, I partnered with a good friend and started a small rum brand as a project both of us are passionate about. With very big ambitions and high hopes, we set out to carve ourselves a small niche in the alcohol industry.
We soon realised this is a brutal and uncompromising environment, owned and operated by the big multi-national brands and early on we learned a few hard lessons. But this is my natural habitat and operating in a hostile environment against larger and more powerful forces is what gives me purpose to find the edge.
While this might seem like an uphill battle, small brands have unique advantages that can help them not just to survive but to thrive. By finding a niche, being innovative in their marketing strategies, and staying nimble, small brands can carve out a significant place in the market.
The first and foremost step for any small brand is to identify that niche. Unlike large corporations that cater to a broad audience, small brands can specialise in a particular area, catering to a specific segment or tribe. This specialisation allows them to build a loyal customer base that values the unique products or services they offer.
With limited budgets, small brands need to be creative and strategic in their marketing efforts. Here are some key marketing principles to adhere to:
Authenticity and storytelling: Consumers today value authenticity. Small brands can leverage their unique stories and personal touch to connect with their audience on a much deeper level. Sharing the brand’s journey, values, and mission can create an emotional bond with customers.
Leveraging social media: Social media platforms offer a cost-effective way to reach and engage with a target audience. Small brands can use these platforms to showcase their personality, interact with customers, and build a community around their brand. Remember – people buy people!
Influencer collaborations: Partnering with influencers who align with the brand’s values can amplify reach and credibility. Micro-influencers can be highly effective as they often have a more engaged and loyal following.
Content marketing: Providing valuable content through blogs, videos, or podcasts can help establish the brand as an authority in its niche. This not only attracts potential customers but also fosters trust and loyalty.
Case Study one – BrewDog
Industry: Craft Beer
Background: BrewDog, founded in 2007 by James Watt and Martin Dickie, started as a small craft brewery in Fraserburgh, Scotland. They aimed to challenge the status quo of the beer industry, which was dominated by large, traditional breweries.
Niche and Strategy: BrewDog positioned itself in the craft beer market, focusing on high-quality, unique, and bold-flavoured beers.
Community Engagement: They built a strong community of beer enthusiasts through initiatives like the “Equity for Punks” crowdfunding campaign, allowing fans to invest in the brand.
Innovative Marketing: BrewDog is known for its edgy and rebellious marketing tactics, which resonate with their target audience of young, adventurous beer lovers.
Success: BrewDog has grown from a small brewery to an international brand with multiple bars and a significant presence in the craft beer market. Their ability to maintain their craft beer ethos while scaling up has allowed them to compete effectively with larger beer brands.
Case Study Two – Jo Malone London
Industry: Fragrance and Cosmetics
Background: Jo Malone London was founded by Jo Malone in 1990. Starting as a small, London-based fragrance company, it quickly gained a reputation for its luxurious and unique scents.
Niche and Strategy: Jo Malone London carved out a niche in the highly competitive luxury fragrance market by offering bespoke fragrances and a personalised customer experience.
Simple Elegance: The brand’s minimalist packaging and sophisticated marketing appeal to a high-end clientele.
Community Engagement: Jo Malone London focuses on experiential retail, creating memorable in-store experiences, with personalised consultations and gift-wrapping services.
Success: Despite being acquired by Estée Lauder Companies in 1999, Jo Malone London has maintained its unique brand identity and continues to be a leading name in the luxury fragrance industry. Their commitment to high-quality, personalised products has allowed them to thrive alongside larger, more established brands.
Both BrewDog and Jo Malone London exemplify how small UK brands can find their niche and achieve significant success. By focusing on quality, community engagement, and unique marketing strategies, these brands have not only survived but flourished in competitive markets dominated by larger corporations. Their stories serve as inspiration for other small brands aiming to carve out their own place in the sun.