Eating the Big Fish

Morgan, an advertising strategist, wrote this about how brands that are not market leaders can compete against those that are.

His definition of a challenger is structural rather than about size: a challenger is not the leader in its market, does not have the resources to outspend the leader, and has ambitions exceeding its conventional marketing resources. This combination forces a different approach, since the leader's methods depend on resources the challenger does not have.

The framework is eight credos derived from his study of successful challengers. Break with the immediate past, meaning explicitly reject the assumptions the category has operated on. Build a lighthouse identity, meaning project a strong and visible sense of who you are rather than positioning against consumer needs, so customers navigate toward you. Assume thought leadership of the category, meaning behave as though you set the terms of debate. Create symbols of re-evaluation, meaning actions dramatic enough to make consumers reconsider a decision they had stopped thinking about. Sacrifice, meaning give up audiences, messages and distribution deliberately in order to concentrate. Overcommit, meaning apply disproportionate resources to the few things chosen. Use advertising and communications to enter popular culture rather than only to communicate benefits. Become idea-centred rather than consumer-centred, which requires organisational commitment to sustain the position.

Sacrifice is the credo he treats as decisive and the one companies find hardest, because concentration requires refusing revenue that is available.

The cases are drawn from Morgan's advertising career and include brands that were challengers when he wrote and have since become leaders or failed. The framework is derived from successful cases, so it cannot distinguish the practices from those of challengers who did the same things and lost. It remains widely used in marketing practice.