As consumers look to spend more on gifts, entertainment and experiences during peak season, brands have a valuable opportunity to grow. Those that are well-prepared can capitalise on this surge in consumer activity to potentially drive sales and build long-term customer loyalty.
Yet, small brands with limited budgets often struggle to stand out and compete with larger businesses during this time. With fewer customers, weaker pricing power and less extravagant marketing strategies, they typically face reduced brand awareness, lower profit margins and less negotiating power.
Marketing is a competitive sport where smaller brands go head-to-head with established giants
To grow, many budget-constrained brands resort to lowering their prices - but this comes at a heavy cost. “Offering low prices is an easy way to gain market share in the early phase, but you may find it condemns you to years of low margins and small profits,” writes Les Binet, group head of effectiveness at adam&eveDDB, in Mailchimp’s How to Grow Your Brand report, which explores marketing strategies for small and mid-market companies.
To avoid this, budget-constrained smaller brands must find other ways to compete with large brands in peak season. Thankfully, there are ways to stand out that don’t involve simply lowering product prices or spending big on advertising.
Make yourself the obvious choice for potential shoppers
At any given time, only a small fraction of potential buyers - perhaps as few as 5% - are actively researching or shopping within your category. The remaining 95% aren’t even considering your product, which means they’re likely to overlook your direct-response ads. This is known as the 95-5 rule.
To succeed, brands need to strike a balance between these two groups. Unfortunately, many smaller brands make the mistake of focusing too heavily on the 5% actively in-market, while neglecting the other 95% of potential customers. While this approach can be useful in the early stages of growth, over-relying on demand generation can limit your brand’s ability to reach a broader audience, hindering long-term growth.
“Marketing is a competitive sport where smaller brands go head-to-head with established giants, all vying to capture attention, loyalty, and market share. It’s no easy feat. Smaller brands face numerous challenges, such as limited resources and economies of scale. But the biggest hurdle from a marketing perspective? Reaching ‘in-market’ customers during their fleeting window of opportunity,” writes Ty Heath, director of market engagement & co-founder at The B2B Institute at LinkedIn, in Mailchimp’s How to Grow Your Brand report.
Building a memorable brand that resonates with potential customers and positions you as the obvious choice when they start shopping - especially during peak season - is a far more effective strategy than scrambling to compete with hundreds of other brands for the attention of time-pressed shoppers.
There are many ways to make your brand the top choice for consumers, whether through a targeted Facebook ad, a TikTok video or even a timely email. Building a strong brand won’t happen overnight - it can take years of consistent effort. But prioritising brand-building from the outset lays the foundation for successful scaling in the future.
Focus on acquiring new customers
Many brands make the mistake of focusing too much on retaining existing customers. On the surface, it makes sense to target customers who you know have an interest in your product.
However, while retaining customers is important, relying solely on this strategy may limit your brand’s growth. To truly scale, brands need to prioritise acquiring new customers and increasing brand awareness. By investing in strategies that enhance your brand recognition, you’ll naturally boost customer loyalty over time. After all, people are more likely to stick with a brand they recognise.
“Focusing on new customer acquisition is critical because, ultimately, growth relies on expanding the pool of who buys into your brand,” says Johnathan Snow, founder of digital marketing agency, The Snow Agency. “While you need to keep your loyal customers happy and engaged, bringing in new ones drives long-term revenue potential and keeps your brand fresh in a crowded market. You’re building a pipeline for future loyalty.”
Acquiring new customers requires consistent, year-round marketing efforts to maintain brand visibility and ensure customers don’t forget about you. This doesn’t mean you have to invest heavily in high-cost advertising. Instead, it’s better to focus on maximising your ad reach efficiently to boost brand recall and sales, and ensuring your budget is working effectively toward your business goals.
Prioritise brand recognition and familiarity
According to traditional advice, brands should try to differentiate themselves from other brands. However, often customers tend to view most brands within a single category as similar to each other.
“Even with an excellent product, customers may overlook a brand they aren’t familiar with,” writes Heath. “By building and sustaining brand awareness, and ensuring your brand comes readily to mind when a need arises, you increase your chances of being the brand people choose first.”
In other words, rather than trying to convince people that you’re completely different from other brands, it’s often more effective to focus on being the first that comes to mind. What really matters isn’t being completely unique - it’s being recognised.
To achieve this, invest in creating memorable, distinctive brand elements - such as logos, colours and messaging - that are closely tied to the moments when customers are ready to make a purchase. Creativity is your most powerful tool. Even with a small budget, it’s possible to create content that makes a big impact.
Expand your customer base
To grow, brands need to attract a variety of light and heavy buyers. According to the 2024 Deloitte Holiday Retail survey, 70% of respondents are expecting higher prices this season, and all income groups are showing signs of frugality. In fact, 62% of holiday shoppers say they are willing to opt for more affordable brands if their preferred brand is too expensive.
“Since many customers will be light spenders, it’s important to serve them profitably,” says Heath. “Optimise your operations and pricing strategies to ensure every customer contributes positively to your business.”
Even bespoke businesses like Kimberfire, which is known for custom engagement rings, have found ways to cater to light spenders. “At Kimberfire, we strike a balance between serving light and heavy spenders through personalised consultations that meet clients at their specific budget and price point,” says Jonathan Goldberg, CEO of Kimberfire.
To truly scale, brands need to prioritise acquiring new customers and increasing brand awareness
For those seeking a unique, tailored experience, Kimberfire offers bespoke engagement rings and custom jewellery. For light buyers who aren’t looking for a fully custom or high-value piece, the brand provides ready-to-wear items, such as earrings and necklaces, at more accessible price points. “This dual approach, paired with our streamlined, technology-driven operations, ensures we serve all clients profitably while building trust and loyalty across our customer base,” says Goldberg.
By offering improved service, product innovation, strong branding and effective customer relationship management (CRM), while also streamlining operations for better efficiency, budget-constrained brands can increase cost efficiency and profit margins. This enhances customer value and supports sustained growth and competitiveness.
Make your current customers feel special
Seeking out new customers while maintaining relationships with your current customers is a delicate balance. Thanks to widespread advances in technology and the vast amount of data now available, brands across all sectors have embraced personalisation - and consumers have come to expect it.
However, collecting and leveraging data comes at a cost, and many budget-constrained brands struggle to use it effectively. The good news is, it doesn’t have to be expensive. Even without sophisticated tools, brands can personalise customer experiences using basic data like names, browsing behaviour and purchase history.
“Early on, we were so focused on how fast we could grow and what we were going to spend to get there,” says Weston Clark, director of customer retention at luxury bedding and loungewear store, Cozy Earth. “We realised what resonates with our audience is building customer relationships by understanding their preferences, to ensure that each message is engaging and relevant to them.”
For instance, according to Clark, if a customer frequently visits the bedding and women’s sections on the Cozy Earth website, the marketing team focuses on promoting bedding and women’s products to that customer, such as pyjamas and sheet sets. Their approach strategically targets buyers who have opened or clicked on previous messages within different timeframes, ensuring they reach users who are already engaged. Clark says they also exclude users who are currently in email welcome flows or have recently made a purchase, to prevent message fatigue and maintain a positive customer experience.
By using simple data effectively, even brands with a smaller budget can deliver personalised experiences that build stronger relationships with existing customers, without breaking the bank.
Embrace the underdog spirit
While large businesses may afford hefty advertising campaigns and high-budget influencer partnerships to stand out during peak season, small and mid-sized businesses often face limitations in budgets, staff and technology. Instead, they must rely on being resourceful to drive growth and compete effectively.
Building brand awareness as early as possible is crucial for gaining a competitive edge. Establishing familiarity with your audience means they’re more likely to remember you when it’s time to buy, which puts you in a stronger position to win their business.
Being the underdog may come with its challenges, but it’s also what can make the competition so exciting. While large organisations often find themselves bogged down by complex structures and rigid processes that can stifle innovation, small and mid-sized businesses have the flexibility to be creative. By leveraging their unique strengths, these brands can make an impact and build lasting relationships - even when working with a much smaller budget.
Through focusing on brand recognition and staying true to their resourceful spirit, budget-constrained brands can carve out a place in the market even against bigger, more established competitors.
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Disclaimer: The views, information and opinions expressed in this article are those of the people interviewed and do not necessarily represent or reflect the views of Intuit, Mailchimp or any of its cornerstone brands or employees. The primary purpose of this article is to educate and inform. This article does not constitute financial or other professional advice or services.
