Pick a rival twice your size

Rule of marketing: Keep your brands close, but your “brandemies” closer.

… Especially if your competitors are bigger than you. It’s exactly how you can position yourself as the little guy and earn audiences’ sympathies.

Framing yourself as the challenger fighting against an industry giant can make customers feel like they’re part of a heroic story, not just part of the transaction.

A good example is the beer brand Samuel Adams.

Despite being a huge brand compared to other craft breweries, Sam Adams often compares itself to industry giants like Budweiser.

Sam Adams has even gone so far as to “spoof” Budweiser in a SuperBowl ad, copying the brand’s iconic Clydesdales, but adding a funny spin to it—showing that they’re still an underdog to the big Bud.

There are many other examples, too. Apple positioned itself as a rebellious underdog compared to the much larger IBM during its humble beginnings.

Dollar Shave Club positioned itself as the scrappy alternative to the huge, pricey Gillette.

And you can probably think of other examples off the top of your head, too.

Target prospects that self-identify as underdogs

Multiple studies show that identity mechanisms drive the underdog effect.

In other words, consumers who already strongly identify as underdogs in their everyday life are more likely to feel connected to your brand’s underdog position.

Not only that, but the effect is also stronger when consumers are buying for themselves rather than for others—even if they’re part of a culture where underdog narratives are part of the identity.

So what can you do? A couple of things:

• Evoke the struggles, grit, and perseverance of underdogs in your messaging, especially if your audience comes from a culture that celebrates underdogs. Think Under Armour’s “Rule Yourself” campaign, for instance.
• The effect is stronger for personal purchases, so frame your brand as a vehicle for self-empowerment. You might try ad copy like this: “For people who make their own luck.”

Rental car brand Avis realized the power of being an underdog early on:

By saying they can’t afford to mess around, they’re actually resonating with underdogs who might feel the same.

Smart move.

Avoid the “underdog trap.”

Context is everything, though, andresearch suggests that not all underdog stories work.

Sometimes established market leaders try to position themselves as the underdogs in the industry when they’re launching a new product, or paving their way in a new market.

Not surprisingly, this backfires more often than not. Researchers even have a name for it—”the underdog trap.”

For example, Burberry, a well-known heritage luxury brand, launched a number of products to position itself as “avant-garde” and compete with other, larger brands.

But straying from its classics and its strong reputation didn’t work, and Burberry’s sales crashed by 21% in Q1 2024. Ouch.

Some brands need to embrace that “top dog” reputation in its market and go with it, so know where you stand, and position yourself accordingly.