Choosing the right category definition is not a trivial exercise, despite the casual way in which many marketing professionals approach this. In general, people assume a category definition based on the current product portfolio and common sense. But sometimes common sense is not that sensible.
One can choose to use a category definition for which every advantageous brand position is taken. Or one can choose a category definition that allows for future growth. One can choose a category definition that can breath new life into the brand. Or one can choose a category definition that enables the brand to become a "category of one" brand.
Further, one can choose a category definition that makes sense to consumers or one that consumers find hard to comprehend. One can choose a category definition that provides clear product development direction or one that leaves the product development direction much more wide open.
And one can create a category definition based on product features/content or product use or consumer benefit.
Take the (non-alcoholic) beverage category for example. Following are potential category definitions. Each has its advantages and disadvantages. And each has its closer in competitors and further out competitors.
- Beverages
- Bottled water
- Non-alcoholic beverages
- Children's drinks
- Fun drinks for children
- Soft drinks
- Carbonated soft drinks
- Colas
- Un-colas
- Juice drinks
- Healthy beverages
- Hydrating drinks
- Sparkling ice
- Energy drinks
- Electrolyte drinks
- Sports beverages
- Live beverages
- Fruit beverages
- Flavored waters
- Sparkling waters
- Smoothies
- Yogurt smoothies
- Coconut water
- Vitamin-infused drinks
- Tea
- Flavored teas
- Coffee
- Coffee drinks
- Flavored coffee drinks
- Dairy beverages
- Flavored milk
- Dairy alternatives
- Calming drinks
- Hot drinks
- Cold drinks
- Refreshing drinks
- Snack drinks
- Mix your own drinks
- Frozen drinks
- Chillers
- Organic drinks
- GMO-free drinks
- Flavor-explosion drinks
And the list could go on and on. Next time you are quick to say which category your brand is in, give it a second thought. You might find that a new category definition is all you need to energize your brand and bypass the competition.
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