Small brands don't have loyal fanbases
Ok, I said it. Let's explore.
There's a belief that you can have a small brand that has a rabidly-loyal customer base. But the data don't really agree.
In every market studied, small brands have lower penetration AND lower "loyalty" (repeat purchase, share of wallet, 100% loyalists, etc.). Market share, penetration, and loyalty always move in lock step together.
This has been found in baby wipes and B2B services. In liquid detergent & luxury watches. In credit cards and cultural events (theatre, live music, etc.). All around the world.
It's even true for the market for commercial airplanes. Boeing has the highest market share, highest penetration, AND highest purchases per buyer. And Embraer has low loyalty & penetration that are predictable just from their low market share.
It's called Double Jeopardy. It's a law (an empirical pattern, a known trend — whatever makes you comfortable).
This is not to say there aren't ever deviations from this pattern. There is "wiggle," and it adds up to real money. (See my previous post on Subaru vs. Dodge.)
But the tiny brand with the rabidly-loyal fanbase compared to big brands in your category?
It's just not a thing you see in the real world much.
Bennett, DR (2016). An empirical study of industrial consumer buying behaviour: how airlines buy airplanes. 45th Annual Conference of the European Marketing Academy (EMAC 2016). Oslo, Norway 24 - 27 May 2016