Own the Category

There is a very powerful technique that not only makes your business stand out from the competition, it literally eliminates it. More than the ORDO we spoke about in last article, it will place your sales offering in a class of its own. To explain, I will first need to introduce you to the following important brand theory:
Similar to file systems, people automatically and subconsciously classify their purchasing needs into categories. For example, if you need to do a large grocery shopping, what you really need is a “supermarket.” “Supermarket” therefore is a category. By extension, retailers are also placed into the very same categories. So, when you realize you need to do a large grocery shopping, first you categorize your need as a “supermarket” need and only then, by feeling around within the “supermarket” category will you land upon a specific retailer, such as ShopRite. The purchasing decision process therefore is essentially one of first choosing a category and then feeling around within the chosen category for a supplier that best answers your need. Consequently, from the moment your mind first selects the “Supermarket” category, you already excluded any offering outside that category, including the corner grocery store. In the event you can’t get to the “supermarket,” you will, out of necessity, re-categorize your need (possibly compartmentalizing your shopping list into smaller sub-categories such as bakery, butcher, fruit store etc.) and consider options within second tiered categories.
It follows that if there was a way to create an entirely new category and make you the only provider within that category, there would be no (direct) competition! Many of the well-known brands expertly do just this. There are a number of different techniques to accomplishing this; I will share one of them with you today. We will label it “subcategorizing.” First, I’ll describe the technique, then follow up with an example.
“Subcategorizing” is the process of divide, conquer and name. 1) Divide- We explore broader categories that already exist (such as a supermarket) and find a section within it that has the ability to become a successful category in its own right. 2) Conquer- We position this new (sub) category to offer it in a way that’s substantially superior to its current offering within the broader category. 3) Name-We name the new category and let the world know it exists.
For example: Before Starbucks came around, brewed coffee was generally offered only as an ancillary part of larger menus, through diners, cafes and the like. Starbucks essentially “subcategorized” by 1) slicing off (or dividing) coffee from the larger menus; 2) it conquered it by offering a huge variety of coffees. 3) It named the new category “Coffee”. As a result, Starbucks became the only provider within its newly invented niche category.
Consider this: If all things were equal and there’s a choice between getting a coffee at a regular Cafe or at Starbucks, would you choose the Café, look for the beverage menu and drill down to the limited 2-3 coffee options they may offer, or would you rather reach directly for Starbucks, that is all about coffee? Chances are you’d opt for Starbucks.
Let me end with a disclaimer: When the world notices your new category doing well, direct competition is likely to crop up within the very category you created. It is therefore imperative that we immediately name the category and brand your business as its creator. If people realize you were first, they will usually consider you the “category leader.” After category owner, that’s the next best position to be in.

Yaacov Weiss is a brand strategist and founder of Tug, a branding and marketing firm based in Lakewood, NJ. If you’d like Yaacov to position your business, call 732-276-6432. You may also email Yaacov at yaacov@tugbranding.com or www.tugbranding.com