5 Ways That Scrappy Brands Can Turn Limited Budgets into Unlimited Loyalty

It’s a known truth in our crowded industry: Small brands face big hurdles. Many operate with razor-thin budgets, limited personnel and little brand awareness. They’re fighting against competitors with massive marketing machines and established supply chains. Challenges include getting shelf space in major retailers, launching digital campaigns with reach, and simply getting discovered by consumers. According to Nielsen IQ, over 80% of new product launches fail within their first year, and according to Stray Partners, fewer than 1 in 25 new CPG product introductions make it to five years.

Despite the odds, some still manage to punch above their weight; they earn loyal followings, drive innovation, and sometimes, even force the big guys to rethink their strategies. Start-up brands that manage to disrupt sleepy categories (think Oatly or Liquid Death) can create an outsized cultural impact with the right approach.

How do they do it? What separates the ones that break through from those that burn out before they ever gain any traction?

Here are the five ways:

1. Stop Imitating. Start Being Authentic.

The worst thing a small brand can do is to copy the leader in the category. Just because something works for them does not mean it will work for you.

Small brands win by leaning into their purpose and personality, or by finding the cracks in the category and wedging themselves in.

Look for what’s missing. What feels broken. What frustrates people. Then fix it and make it yours. Focus on doing it in a way that only you can.

Graza olive oil built an unapologetically bold brand by ditching the standard glass bottle and vintage labels for a green squeezable bottle with friendly cartoons on the label. Andrew Benin, co-founder and CEO, says that the brand, a single-origin product, is projected to bring in 48 million dollars this year. He saw what was missing (joy, simplicity and freshness), filling that gap with clarity and quirkiness. Without a big marketing budget, they leaned into the power of social media by sending bottles to influencers with hundreds of thousands of Instagram followers. Belief starts when a brand does something the category has failed to do.

Graza also leaned into smart collabs, partnering with brands like Ithaca Hummus and Aura Bora on a canned olive oil martini. While collaborations can sometimes blur focus or feel opportunistic, in Graza’s case, they reinforced the sense of a “new world leader” in olive oil, showing up wherever excellent olive oil could elevate the experience authentically.

2. Focus on Consistency Rather Than Cool.

Trends can be tempting. TikTok flavor drops, collabs, whatever’s hot this week. But don’t confuse attention with traction. The brands that win don’t chase; they own the narrative. They know who they are and consistently show up that way every time, whether in their packaging, their voice or their product. You do not have to be loud, but you do have to be clear and drive the message authentically.

While most bottled water brands are bland and uninspiring, Liquid Death is anything but. It does play loud, but is always consistent. What makes Liquid Death especially interesting is how, despite being relatively new, it already feels like a heritage brand. That is because it has stayed unwavering in its look, tone, feel and messaging. From packaging to copy to campaign tone, all the way to their Super Bowl commercial and viral social posts, they are dialed into a single, cheeky idea: “murder your thirst”. They are in your face — and that’s the point. Great brands do not reinvent themselves. They reinforce what makes them unique, over and over again.

3. Think Like a Brand. Move Like a Startup. 

Big brands move like cruise ships, slow and steady. Small brands can act like a Jet Ski – fast and nimble. Unlike legacy brands, small players can test, iterate and pivot quickly. Whether it’s a package design, a new flavor or a social strategy, continue to try different iterations. Build real relationships and creator partnerships. Get the product into people’s hands and see what sticks. Simpler is smarter. Speed wins.

Mid-Day Squares, the healthy, functional chocolate bar, started in the kitchen of the founder’s condo and focused on building fans rather than customers through social media. They did things that can’t be scaled, like hand-delivering product to their customers, filming the content and sharing it across their channels. “We act like a band, but instead of selling music, we sell chocolates,” says Nick Saltarelli, co-founder. With that, they bring the audience into the chaos, including machine breakdowns, product quality issues, even lawsuits, and turn them into a competitive edge. They ship fast, adapt quickly, and document everything with radical transparency. It is not always polished, and that is the charm. Speed + authenticity = trust. Agility can be your advantage. When you are small, process is not the point; momentum is.

4. Make Listening Your Superpower.

As a small brand, you do not need a six-figure research study to understand your audience. You just need to pay attention. Talk to people. Read the reviews. Go to stores. Scroll through Reddit threads and listen to your consumers.

Then boil it down to a few key things:

  • What do they want?
  • What is getting in their way?
  • How do they want to feel?
  • Who are they trying to connect with?
  • Get active in the comments. (As that applies to all social, especially TikTok)

Men’s soap brand, Dr. Squatch, built an entire DTC soap business by reading comments, testing hooks, talking like a real human and making humor part of their DNA. They nailed the emotional tension: Men want personal care that feels premium and authentically made for them. Every message reinforces that core insight. For emerging brands, the most powerful ideas come from addressing real, unmet needs. Big brands, take note!

5. Serve the Few. Let Them Spread the Word.

Trying to be everything for everyone is impossible. The best small brands pick a lane and drive hard. They know exactly who they appeal to, and go all in. Do that right, and loyal fans will do the talking for you, bringing others along with them. Focus creates fans. Fans create growth.

Fly By Jing started with a tight community of flavor lovers and built a following while advancing its mission to rewrite the story of Chinese food in American culture. Their unapologetic voice and focus on modern Chinese flavor made them a standout in a sea of bland, global-fusion sameness. The lesson here is, don’t be limited by a niche — it can serve as your launchpad. Get the right few, and the rest will follow.

Being Small is not a Weakness; It is Your Edge.

Your advantage is not a big budget; it’s agility, empathy and insight. You can act faster, listen closer and build stronger emotional connections than the big guys can. That is your superpower. You are not here to outspend them. You are here to outthink them, out-listen them, and out-care them. Do that well, and you won’t just gain customers, you will create loyal advocates who believe in your brand.

John Tanner is Global Director at Chase Design Group.