Category Creation - 8 Ways to Make it Happen

As a marketing strategist, I firmly believe that we should manage the categories, not just brands.

Because people first choose a category and then zero-in on a brand in it.

So, a key component of an effective brand strategy is to identify a gap in the market and create a new category or sub-category.

Because when we look at the history of the markets, major shift in the market share movements occur primarily when a company creates a category.

It makes the competition irrelevant, create an appealing proposition for the customers and provide a distinctive advantage to the companies.

Based on my recent research, I have distilled the 8 common strategies that companies have used to design a category;

1.Create a mass market where there is presently only a small, elite market for rich people.

Before Henry Ford began mass manufacturing cars, they were a luxury item for the very rich.

The overseas-holiday market was restricted to the wealthier middle classes. Packaged holidays democratised it.

?Budget airlines like SouthWest airlines, Ryanair and EasyJet have accomplished something identical for independent travel.

2.Create a premium market where there is currently only the low-cost mass-market.

Starbucks. The food and drinks category inherently lends itself to luxury segments such as premium gin, and super-premium gin.?

ITC’s Dark fantasy in the biscuit category.

Which food and drinks don’t have an upscale version yet?

3.Affordable luxury.

Create a new category that is much more affordable than the existing luxury and yet maintains high standards and much of its charm.

Toyota did this with Lexus. It’s a luxury car with the performance of a BMW or Mercedes, but at a much lower price.

?4.Go bigger or smaller.

Unique niches can be formed by either pushing for a bigger or smaller product.

Deliver something bigger, more robust or more powerful like super-sized McDonald’s, 4*4 utility vehicles, large-size houses, and sports cars.

Alternatively, you may provide a smaller version of the product;

IPL’s 20-20 cricket, the wristwatch and smart cars are some examples.

5.Craft an emotional story around the product.

Emotion is friendly and costly. Functionality is no-nonsense, rational, cheap and stripped down to the basic needs.

You can create a new niche by going emotional in a market that is predominantly ‘functional’.

Brands like Nike, Coca-cola, and Cadbury’s go by this formula.

6.Healthier version of the product.

Half-fat, low-fat, non-fat, reduced sugar, low sugar, sugar-free, low cholesterol, cholesterol-free, semi-skimmed milk, skimmed milk, and everything in between. The list goes on.

Tropicana’s 'fruit juice not made from concentrate' showed people new things to bother about and pay to escape.

Whole Foods Market created the natural-food retailing category and has been monopolizing the market.?

It is never too late for entrepreneurs in Asia to develop an identical category.

7.Single-sex.

You could create a new category by focussing exclusively on men or women

Identify problems that are specific to either men or women and roll out a product or service to solve them.

Common examples – health clubs exclusively for women, Supplements for men or women etc.,

Be imaginative and find what is left for you?

8.Tap the 'seniors' market.

The market for the 50s/60s i.e seniors is rising fast.

Retirement homes are one of the obvious markets.

But a lot of mainstream markets don’t yet have senior specialist products/services.

Cab services, insurance plans, holidays, dresses, food supplements, personal care products, toiletries, fitness centres... a lot of things can be personalized for the senior’s market.

Next time, when you devise the brand strategy, take a step back, understand the gaps in the category and position your brand accordingly.

(Rajesh Srinivasan is a Marketing Strategy Consultant, 2X Author and a Keynote speaker. For appointments, write to [email protected])?