Challenger brands are a fascinating case study for me to explore because there is something uniquely intriguing about a brand that has the guts to compete in a highly-competitive, established market. Sometimes it’s about disruption and changing the status quo (Apple’s iPhone). Other times it’s about building a better mousetrap (Salesforce’s F&Bs), or redefining the customer experience (Warby Parker’s online UX/UI).
However you slice it, launching a company in an entrenched market is difficult, but how does one get traction in a niche that doesn’t necessarily appear to have the “need” (or room) for your product? Is the luxury category more challenging than something more mass market? What are the risks? Is there a proven path to success? Let’s dive in!
Maserati is a bit of a special case. It’s a legacy brand that’s also a challenger -; with the introduction and acceleration into the supercar category again after many years. The new crown jewel in the lineup is the MC20, which arguably competes with market leaders like Ferrari, Lamborghini and McLaren to name a few.
Maserati is a distinct Italian-made brand that’s been around for a hundred years with a racing and touring heritage adored by many. To me, the brand is a symbol of speed and status that is uniquely rooted in Italy and tailor made for a special segment of buyer that wants something a little off the beaten path from what everyone else is doing.
“The Maserati brand stands for an audacious performance that we sell through an emotive reaction,” says Bill Peffer, Head of Maserati Americas. “It’s not one that’s sold on price. It’s not one that’s sold on value. We sell on the emotive attachment that someone has to a luxury automobile.”
The new MC20 delivers on that promise and it is a stunner in terms of engineering, design and performance. It is exciting to drive and I found it impossible to have even the slightest bit of bad day during the week I test drove it around Laguna Beach. Heads turned. A lot of people wanted selfies… I felt like a rockstar for the day. From a design standpoint the front end reminds me of a blend of modern and retro 1960s influence that’s classically Italian. While the back end is bold and robust to support the girth of the powerful V6 twin combustion technology that Maserati infused with F1 DNA.
Maserati, like other brands that have taken risks in design and performance, have had to deal with times when a particular model didn’t hold up to expectations. That said, I believe the MC20 has the opportunity to be a break-through flagship for the brand. There’s no question that a lot of passion, technology and emotion is baked into the way that Maserati designed this supercar. It is meant to be evocative. From the fit and finish of the interior…roar of the engine not so subtle curves of its body, you understand it’s meant to transport you to a new state of mind.
Maserati is eager to finally get in the supercar game at this level and give their loyal base what they’ve probably been longing for over the years. It’s a first of its kind that has a Nettuno engine which is their patented 621 horsepower V6 engine with Twin Combustion technology. The car goes from zero to 60 mph in less than 2.9 seconds and has a top speed of 202 mph.
To understand a bit more about how Maserati is positioning itself it’s important to unpack challenger brands and how they might operate. I have my opinions but I also reached out to a couple of friends, Chris and David, who bring a ton of brand experience to to the table.
Chris Do is an Emmy award-winning designer, director, CEO and Chief Strategist of Blind and the founder of The Futur. David Armano is Senior Director, Customer Experience Strategy at digital human company Soul Machines and founder of brand consultancy boutique Armano Design Group. Here are a few hot takes…
“A challenger brand has yet to capture the attention or market share of the vertical in which they compete,” says Chris. “They often trail established brands in the fourth or fifth slot and are not even on the radar of their customers. They fall below or outside the consciousness of the mass market. Challenger brands are often ‘discovered’ by first movers and early adopters because they enjoy being the first to know about something or going against established norms. They get status from being first. There is absolutely room for more than just two categories in a market.”
In this way it’s not surprising that Maserati is widening the lane after the success of models like Alfieri and others to make room for a competitive supercar like the MC20.
“Maserati is not ever going to be a leader in terms of the mass market. We’re not for everybody…” Peffer says. “What we want to make sure [of] is that we pay off on the proposition of performance and luxury with Italian flair. If we’re able to do that, the volume comes secondary with the right product offering.”
From a marketing perspective, this idea of doing what you do well and not stretching yourself too thin makes sense. It’s a familiar play from the playbook of successful brands that focus on finding the best product market fit. It’s also about listening to your biggest fans and giving them what they want -;or in this case exceeding expectations.
“There are lots of challenges with challenger brands-;namely breaking through,” says Armano. “Achieving scale and building brand preference along the way. It takes a great deal of both agility, innovation and effectiveness when it comes to stretching marketing dollars to the limit-;when your competition seems to have endless resources.”
Peffer explains that he also views the MC20 as a gateway luxury car for Maserati enthusiasts. It is an exciting new model that is sure to and bring a lot of new prospective buyers into to the Maserati dealerships to look at the full line of options.
“When they get to Maserati and we get on the consideration list, they will recognize as we bring out these new products that we are broader than just a Grand Turismo company. We don’t want to just grow for the sake of growing. We want to grow with a community that has the ability to move with us as the brand proliferates.”
For Maserati, it’s a smart move to double down on a vehicle with so much potential experiential prospect since the brand does not do traditional TV advertising.
“Challenger brands have fewer resources and more constraints than their dominant cousins,” Do says. “The market leader commands the highest margins, has brand recognition, a deep talent bench and pre-existing customer relationships. They can outspend challenger brands on almost every dimension. Challenger brands would be unwise to take on dominant brands head on.”
Do explains that challenger brands have to be more agile. In some regards this is an exciting space to be in as it creates an environment that he says lends itself to creativity. “They have to run lean, be resourceful, and innovate.”
“Personally I like to think of challenger brands in the purest sense of the label-;one that is looking to challenge brands who are the market leaders,” says Armano. “They should not be confused with disruptor brands who are often times entering the market with a disruptive business model-;rather they seek to build their brand less traditionally, they take chances and are often pioneers in brand and marketing innovation.”
Peffer tells me that Maserati has never done television ads. It’s unclear if they find them too cost prohibitive of if they find them, for lack of a better term, too basic. Whatever the case, they rely on other ways to connect with their customer base.
“Digital has been the primary focus of our marketing,” Peffer says. “But we want to try to do things that are daring and do things in spaces where our competition isn’t. It’s really easy to follow but if we can through smart marketing and through creativity, amplify our brand and do it with a product like [MC20] then it goes viral. It works really well for us.”
Chris Do agrees with this strategy. He explains that tapping into the history of the brand is another way to bring customers in. “Tap into the founder story,” he says. “What was the inspiration behind the brand? What problem did it solve? What hurdles had to be overcome to bring the product to market? Why does it matter? Why should people care and share? Tell this story and weave it into every consumer touch point.”
For Maserati, it’s telling the story of 100 years of history and racing technology. Paraphrasing from Masarati’s history, “In December of 1914, Maserati SA was founded in Bologna, Italy by brothers Alfieri, Ettore, and Ernesto Maserati. As far as I could find, their first product was spark plugs. The Maserati emblem itself is fashioned after the trident held by the Neptune statue in Bologna’s Piazza Maggiore. The iconic logo was designed in 1920 by the 4th Maserati brother, Mario Maserati.”
Italians are known for being unapologetically joyous and full of life -;and Maserati doesn’t shy away from that brand messaging even though they’re in a luxury category this is traditionally more reserved and subdued.
They’re not trying to be more polished than their competitors. They’re a brand looking for the person who “gets it.” For some people, it’s the novelty of it all but for others, it’s feeling like they’re going against the grain and tying themselves to a brand that’s not at the top -; a rebel that they can relate to.
“Everybody loves the underdog. The story of a challenger brand is much more relatable because people are seldom in the dominant position,” Do says. “People see themselves in the struggle and identify with challenger brands. They want to see challenger brands, whose values align with them, succeed. People want to see the bully being brought down a peg.”
In this context it’s not surprising to hear Bill Peffer say that Maserati is not trying to be number one. It seems counterintuitive but it’s not because you’re not making a car for all people. Maserati is making a supercar for the right people.
Regardless of the outcome in terms of sales, David Armano reminds me that there’s really nothing to be gained by playing it safe. “Lean into risk-taking,” he says. “If you’re a CMO for a challenger brand and your CEO wants to play it safe-;I would question if you really want to work for [that] brand. You may need to have a difficult conversation with the CEO. There is no way to challenge and compete with better funded more resource-rich competitors by playing it safe.”
More on Maserati and my exclusive behind the scenes photo shoot that we shot in studio with photographer, Eric Hameister at Car Prep Inc. in Fountain Valley, CA:
Bryan Elliott
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