A challenger brand is a company or product brand in an industry that is not the category leader. They can neither be called a market leader nor a niche brand.
There are famous challenger brand stories in:
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Mobile segment:
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OnePlus One trying to convert the Apple and Samsung users to One plus.
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The company has had a great opportunity in India to make good products and to use the e-commerce model to disrupt the traditional brands.
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They are very clear on their positioning and market share and know they can bring value to the costumers by striving to make the best android flagship phone.
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People liked OnePlus so much was because of the use of sandstone instead of polycarbonate, used by their competitors, for their body for the phone.
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It is about the level of detail and understanding of design and innovation that made the difference.
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Consumer goods segment:
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Ghadi Detergent a lesser known brand or rather product made difference a few years back and Detergents as a category are already mature with extremely high penetration.
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Ghadi Detergent played on its strength, delivered the product at a great price and also communicated the product in a way that it resonated with a very large consumer base.
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The product also has innovations piped up and it almost shook the whole detergent industry.
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Food segment:
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The Delhi based Bagrry’s has created subcategories like oats and muesli but what is different and how does it disrupts the segment?
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It created oats into staples forms of Atta, suji, and rava, poha, etc. which attracted consumers on large scale as they are becoming health conscious.
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Bagrry’s has a new innovation up its sleeve and is coming out with something called as Corn Flakes Plus which has 2x fiber and is a lot healthier than a normal cereal breakfast.
Challengers mostly share common characteristics such as an entrepreneur’s hunger to win along with single person decision-making, and being free of the pressures faced by most MNCs on margins, profit, shareholder return etc.
Source http://bit.ly/2eL2S1T
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