When big brands lose some of their luster, there are a few common culprits. One is the inherent pressure of growing too fast (think Starbucks). Another is a kind of institutional inertia that sets in as a company ages. Smaller, more innovative companies step in and steal away market share (think Gap).
But can sticking it to the man play a part in brand switching? According to the Underdog Theory of Marketing, it can:
"When you’re an underdog, a scrappy new company, your core customers can identify with you. When you get big, your earliest customers have trouble identifying with you anymore, and they drift away to find another brand can be meaningful to them again."
As long as the underdog can provide equal functionality, some people will defect. There are a lot of examples in the world of interactive, most notably Google and MySpace. In this article I discuss the Underdog Theory in greater detail, and offer some techniques that might help growing companies sustain their relevance and appeal.
Misha Cornes
Strategists & Planners